B Notice and 1099-Miscellaneous reporting – What you need to know
- What is a B Notice? What is 1099-MISC reporting?
- The Internal Revenue Service (IRS) creates B Notices based on the tax identification number (TIN) or TIN owner name combination from the previous tax year. If Aetna’s file doesn’t match what the IRS has on file for a TIN or TIN owner name, the TIN/TIN owner name is put on the B Notice file. A TIN can be a Social Security number (SSN) or an Employer Identification Number (EIN).
- Form 1099-MISC is the tax form that shows payments that Aetna issues normally to a provider, vendor or independent contractor holder. If applicable, it shows any federal income taxes withholding amounts for each TIN. Aetna mails the Form 1099-MISC forms to providers in January.
- Why is Aetna sending me a first B Notice?
- The IRS notified Aetna that the name and TIN combination (your SSN or EIN) on your account with us doesn’t match their records.
- The IRS considers a record as incorrect if either the name or TIN shown on an account doesn’t match a name and TIN combination in their files, or the files of the Social Security Administration (SSA).
- Please take the appropriate action to help Aetna correct this problem before the date shown on the Notice. Unfortunately, if this isn’t corrected in a timely manner, the law requires Aetna to withhold federal backup income taxes at the rate of 28 percent, and if applicable, state backup withholding income taxes.
- Why is Aetna sending me a second B Notice?
- The IRS sent Aetna B Notices twice within a three-year timeframe, stating that the name and/or TIN combination does not match their files. Please contact the IRS or SSA to get the correct documentation.
- We cannot accept a Form W-9 to stop backup withholding for a second B Notice.
- Once a second Notice is received, we are not permitted by regulation to modify the payee name or TIN.
- The following are the documents that the IRS requires a payee to provide:
–EIN – IRS Letter 147c
–SSN – “SSA Social Security Number Printout”
- Once a second B Notice is received, we are not permitted by regulation to modify the payee name or TIN.
- The information on my 1099-MISC form is incorrect; how do I correct it?
For an incorrect name, EIN, SSN or dollar amount, refer to the list below of account-specific contacts. Review the account code on your Forms 1099- MISC to find the correct area to contact. For any other corrections, fax or e-mail the correction (include Form W-9), using the list below.
- I have other questions; how do I contact the right area?
Please e-mail us at PDM/IRSbackupwithholding@Aetna.com. Or, use the chart below to contact the correct business area. We base this on the numbers of the account code on the Notice, or the name of the company you do business with.