IRS B-Notice FAQs

Why did I receive an IRS B-Notice?
We were notified that the name and/or Taxpayer Identification Number (TIN) on your account does not match U.S. Internal Revenue Service (IRS) records. As a result of this mismatch, you received the B-Notice.

What action do I need to take in response to the B-Notice I received?
Follow the instructions provided in the B-Notice letter you should have received in the mail or in the email we sent you. You can log in to your account and follow the prompts to submit the required documentation or submit via our Secure Mail Center or by mail. As outlined in the table below, the documentation required will be dictated by the following: (1) the type of B-Notice you received; (2) who your PayPal account is set up for; and (3) what type of TIN you are providing.

You can learn more about IRS B-Notices by visiting IRS | Backup withholding “B” program.

How do I obtain a new copy of my SSN Card?
Here are two options available for requesting a replacement SSN card:

Option 1: Call the Social Security Administration (SSA) at 1-800-772-1213 between 8:00 AM and 7:00 PM, local time, Monday through Friday. Call TTY/TDD 1-800-325-0778 if you have a hearing impairment.

Option 2: Visit SSA | Replace Social Security card and follow the prompts to answer questions to determine if you are eligible to apply for a replacement card online.

How do I obtain an IRS Letter 685C?
Call the IRS at 1-800-829-1040 between 7:00 AM and 7:00 PM, local time, Monday through Friday. Call TTY/TTD 1-800-829-4059 if you have a hearing impairment.

You can also visit IRS | Individual taxpayer identification number to learn more about ITINs.

How do I obtain an IRS Letter 147C?
Here are two options available for requesting the letter:

Option 1: Call the IRS Business and Specialty Tax Line at 1-800-829-4933 between 7:00 AM and 7:00 PM, local time, Monday through Friday. Call TTY/TTD 1-800-829-4059 if you have a hearing impairment.

Option 2: Write a letter to the IRS Center where you file your income tax return and ask the IRS to send you a Letter 147C. Your letter should include the following:

• The date
• Your legal business name
• Your business’s assigned EIN
• A general request for a Letter 147C
• Copy of B-Notice you received
• Delivery method preference (i.e., Mail or Fax)
• Fax Number or Current Mailing Address (depending on delivery method preference)

What happens if I fail to provide the required documentation by the given deadline?
Failing to provide the required documentation by the given deadline can result in account limitations, tax holds, and/or 24% backup withholding being applied to certain future reportable payments you receive.

What are the types of reportable payments that can be impacted?
Some common types of reportable payments that might be impacted are:

• Payments received for the sale of goods or services
• Interest payments (if actively enrolled in PayPal Savings)

You can learn more about backup withholding and eligible payments by visiting IRS | Backup withholding.

Does this affect the money I receive from friends and family?
No. Money sent as a Friends and Family payment is not considered to be reportable income and, therefore, is exempt from tax holds and backup withholding.

Can backup withholding be refunded back to me?
We can’t refund any amount that has been sent to the IRS, but you can claim a credit for the backup withholding when you file your federal income tax return. We will report any backup withholding you incurred during the year on a Form 1099 that will be issued by January 31 of the next calendar year.

What if I still have additional questions?
We recommend you continue to explore other FAQs on our Help Center, visit the IRS website (Internal Revenue Service), or contact a professional tax advisor.

Tips:

• Requesting a faxed copy can be the quickest way to get a copy of the IRS Letter 147C.
• If you choose to request the IRS Letter 147C via mail, it is still a good idea to call the IRS Business and Specialty Tax Line to confirm the correct mailing address, as it is dependent upon where you are located.
• If you have multiple PayPal accounts, you should confirm that your information (i.e., Name and TIN) is accurate on each account.
• Make sure that you include and sign (if applicable) all pages of the document before you upload it to your PayPal account.
• Submit documentation as early as possible to allow time for processing prior to the deadline.