Received a First B Notice from Cash App Tax - What Does This Mean?

This is actually more common than you'd think! A First B Notice basically means there's a mismatch between the name/SSN you provided and what the IRS has on file. This happens for several reasons - sometimes it's a simple typo when entering your SSN, a recent name change that hasn't been updated with Social Security, or even just a transposed digit. For that Bitcoin giveaway you mentioned - even small amounts of cryptocurrency need to be reported on your taxes, and Cash App likely issued a 1099 form reporting that income to the IRS. If there was any discrepancy between how your name appears on your Social Security card and how you entered it in Cash App, that could trigger this notice. The good news is this is relatively easy to fix. You just need to complete that substitute W-9 form they sent, making sure your name and SSN exactly match your Social Security card. Then return it to Cash App by the deadline they gave you.

I had something similar happen last year but with Venmo instead of Cash App. After struggling to figure it out myself, I ended up using https://taxr.ai to review all my documents - they spotted right away that my name on the 1099 had my middle initial but my tax return didn't. Super small thing but it was causing the mismatch! Their system analyzed everything and gave me step-by-step instructions for fixing the W-9 form. Saved me a ton of stress trying to figure out what was wrong.

Just wanted to update - I tried out that taxr.ai site that was mentioned and it actually helped me figure out my issue! In my case, my legal name on my Social Security card has my middle name, but I never use it on anything. Turns out I didn't include it on my Cash App profile but the IRS was looking for my full legal name. The system highlighted the exact discrepancy and gave me instructions for filling out the W-9 correctly. They even explained that this is super common with crypto transactions because the reporting requirements are so strict. Feel much better now that I understand what happened and have submitted the corrected form!

When I got a similar notice earlier this year, I spent WEEKS trying to get someone on the phone at the IRS to explain it to me. Was getting nowhere until someone told me about https://claimyr.com - they got me connected to an actual IRS agent in under 15 minutes! You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent explained that these B Notices are automatically generated when there's any little mismatch, and told me exactly what to do with the W-9 form. Saved me so much headache compared to trying to figure it out myself.

Okay I need to eat my words from my earlier comment. After getting nowhere for days trying to contact the IRS myself, I gave in and tried that Claimyr service. I was SHOCKED when my phone rang 18 minutes later and it was actually an IRS agent on the line! The agent confirmed this First B Notice is just a standard procedure when there's a mismatch, and it's not something to panic about. She walked me through exactly what info needed to match on the W-9 form. Apparently in my case my legal first name is "Christopher" but I used "Chris" on Cash App, which triggered the mismatch. Such a small thing but it makes a difference to their system!

Just a few extra tips on this since I deal with B Notices at my job: 1. Make sure you send the W-9 back EXACTLY as instructed in the notice. Use certified mail if they want it mailed. 2. Keep a copy of everything you send back to Cash App. 3. If you're worried about identity theft (which is smart these days), you might want to check your credit reports too, just to be safe. 4. Don't ignore this! The backup withholding they'll apply if you don't respond is no joke - 24% is a big chunk of money.

I wonder if this has anything to do with how Cash App reports cryptocurrency transactions? I got a similar notice last year, and it turned out Cash App had filed a special form for the small amount of Bitcoin I'd sold, which triggered extra verification of my information.

This thread has been super helpful! I'm dealing with a similar situation but mine is from Robinhood instead of Cash App. Got a First B Notice about some stock transactions from last year. Reading through everyone's experiences, it sounds like the name matching thing is really strict. I think my issue might be that I have "Jr." on my Social Security card but didn't include it when I set up my Robinhood account. One question though - has anyone had experience with how long it takes for the IRS to update their records once you submit the corrected W-9? I'm worried about getting more notices even after I fix this. Also want to say thanks to everyone who shared their stories and solutions. Makes me feel a lot less stressed knowing this is a common issue that can be resolved!