What should I do about receiving a CP2100A IRS notice for incorrect 1099 filings?

You're mostly on the right track! A CP2100A notice is essentially the IRS flagging a mismatch between what you reported and what they have on file. The notice serves two purposes: 1) to inform you of the discrepancy and 2) to prompt you to correct future filings. For the SSN typo, you should keep that W9 on file in case the IRS follows up, as it shows you made a good faith effort based on the information provided to you. Regarding the 1099-MISC vs 1099-NEC issue, you're correct that for appraisal/inspection services, 1099-NEC is the proper form since 2020 when the IRS split non-employee compensation from the MISC form. This change was specifically designed for independent contractors providing services. While there's no need to file corrected returns for 2023 unless the IRS specifically requests it in a follow-up notice, you should: 1. Update your records for future filings 2. Document your understanding of the notice and your plan to file correctly going forward 3. Keep this documentation with the CP2100A notice The key thing is to ensure your 2024 filings use the correct form (1099-NEC) for these contractors.

After getting a similar notice a few years ago, I stumbled upon this service called taxr.ai (https://taxr.ai) that saved me so much stress. I uploaded the CP2100A notice and it gave me a clear breakdown of what I needed to do - and more importantly, what I DIDN'T need to do. It explained everything in plain English instead of IRS-speak. For my situation, it confirmed I just needed to file correctly going forward and didn't need to submit corrected forms since it was just a form-type issue, not incorrect dollar amounts. Their system also helped me track which contractors needed 1099-NECs vs 1099-MISCs for future reference. Might be worth checking out if you're feeling uncertain about interpreting these notices!

I actually tried taxr.ai after seeing it mentioned here and was really impressed. I was initially skeptical (as you can see from my question above!), but uploaded my CP2100A notice that was similar to the OP's situation. The analysis confirmed I didn't need to file corrections for the prior year unless specifically requested, but needed to ensure proper filing going forward. It also explained WHY the 1099-NEC was the proper form for my contractors (something about Box 7 non-employee compensation being moved to its own form in 2020). What really sold me was when it flagged another potential issue I hadn't even noticed - one of my contractors had an EIN/name mismatch that would have triggered another notice next year. Saved me from future headaches for sure.

I had a similar situation with a different IRS notice and spent WEEKS trying to get through to someone at the IRS to confirm my understanding. Literally impossible to reach a human. Finally found Claimyr (https://claimyr.com) which got me connected to an actual IRS agent in about 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent confirmed exactly what the first commenter said - the CP2100A is mainly informational and you don't need to file corrections unless they specifically ask for it in a follow-up notice. They also confirmed that appraisers and inspection services should be on 1099-NEC going forward. Having that direct confirmation from the IRS gave me peace of mind since I was worried about penalties.

I need to eat my words from my skeptical comment above. After seeing several positive mentions, I tried Claimyr for an unrelated tax issue (also couldn't get through to the IRS after multiple attempts). To my complete surprise, I got a call back within 35 minutes with an actual IRS representative on the line. The agent was able to answer my questions about a CP2100A notice my small business received (similar to OP's situation). The IRS confirmed that for these notices, unless they specifically request corrected returns, you just need to ensure future compliance. The agent also explained that the 1099-NEC vs MISC confusion is very common since the forms split in 2020, and they're seeing a lot of these notices this year. Definitely worth it to get official confirmation directly from the IRS rather than stressing about whether I was interpreting the notice correctly!

Just to add to what others have said - I've been doing accounting for a small business for 15+ years and CP2100A notices are pretty routine. They're basically saying "hey, there's a mismatch, fix it going forward." For the SSN typo, technically you could file a corrected return, but unless the IRS specifically asks for it, it's generally not necessary for just a CP2100A. Do keep documentation showing you had the W9 on file though. The 1099-MISC vs 1099-NEC issue is super common. The IRS changed this in 2020, and a lot of accounting software didn't update properly. For anyone reading this - if you're paying for services (not goods), it's almost always going to be a 1099-NEC now.

Has anyone else noticed how the IRS sends these notices MONTHS after the filing deadline? By the time we get them, it's almost time to prepare for the next tax year anyway! For the 1099-NEC vs 1099-MISC issue, I learned the hard way last year when we had to amend 30+ forms. Our tax software defaulted to MISC and I didn't catch it in time. Complete nightmare!

As someone who's dealt with multiple CP2100A notices over the years, I can confirm that everyone here is giving solid advice. The key thing to remember is that these notices are more of a "friendly reminder" than a demand for immediate action. One thing I'd add - make sure to update your payroll/accounting software settings for 2024. Many systems still default to 1099-MISC because that's how it worked pre-2020. I had to manually change the settings in QuickBooks to ensure all service payments automatically generate 1099-NECs instead of 1099-MISCs. Also, for future reference, the IRS has a pretty clear guide on their website (Publication 15-A) that breaks down when to use which form. It's worth bookmarking since the rules can be tricky with mixed payments or different types of contractors. The SSN typo issue you mentioned is super common too - as long as you have the W9 showing you used the information provided by the contractor, you're covered. Just keep that documentation handy in case they follow up.

I'm dealing with a similar CP2100A situation right now and this thread has been incredibly helpful! I run a small property management company and we've been filing all our maintenance contractors on 1099-MISC forms since I took over the business in 2021. Had no idea about the 2020 form changes. Just received our CP2100A notice last week and was completely overwhelmed by the language. Based on what everyone is saying here, it sounds like I just need to switch to 1099-NEC for 2024 and keep the notice on file? We have about 15 regular contractors for plumbing, electrical, HVAC repairs, etc. One quick question - for contractors who do both emergency repairs (services) and sometimes sell us parts/materials, should those still go on 1099-NEC or does the mixed payment complicate things? Most of our invoices show both labor and materials on the same bill. Really appreciate everyone sharing their experiences - makes this so much less stressful when you realize it's a common issue and not some major compliance failure!

I went through almost the exact same situation last year with our construction business! Got a CP2100A for filing all our subcontractors on 1099-MISC instead of 1099-NEC. The notice language is absolutely terrible - took me three reads to understand what they were actually asking for. What helped me was creating a simple spreadsheet to track which contractors should get which forms going forward. For anyone providing services (inspection, appraisal, repair work, etc.), it's 1099-NEC. For things like rent payments to landlords or prize payments, it stays on 1099-MISC. The SSN typo issue you mentioned is super common too. As long as you have that W9 showing you used the information the contractor provided, you're covered. I had two contractors with similar typos and the IRS never followed up after I kept the documentation on file. One tip that saved me time - I called my accounting software company to make sure they updated their default settings for 2024. Turns out they had a setting buried in the 1099 preferences that still defaulted to MISC for all contractor payments. Once I switched it to NEC for service payments, it made this year's filing much smoother. You're interpreting the notice correctly - no action needed for 2023, just fix it going forward for 2024!

I'm going through something very similar right now! Just got my CP2100A notice yesterday for our small consulting firm and was completely panicked until I found this thread. We've been filing all our freelance consultants on 1099-MISC forms since 2021, and apparently they should have been on 1099-NEC. Reading through everyone's experiences here has been incredibly reassuring - sounds like this is a really common issue that a lot of businesses are dealing with as everyone catches up to the 2020 form changes. I had no idea the IRS split these forms and our previous bookkeeper never mentioned it. Based on what everyone is saying, it sounds like I just need to keep the notice on file and make sure we use 1099-NEC for all our consultants in 2024, right? We don't need to go back and file corrected forms for 2023 unless they specifically ask for it in a follow-up notice? One thing that's been stressing me out is that we have about 20 different consultants we work with regularly, and I'm worried we might get more of these notices if other contractors reported their income differently than what we filed. Has anyone dealt with multiple CP2100A notices at once, and if so, is the approach the same for each one? Thanks to everyone who shared their experiences - this community is a lifesaver when dealing with IRS notices!

I'm a newcomer to this community but have been lurking and reading through all the helpful responses here. I just wanted to add my perspective as someone who recently went through a similar CP2100A situation. I received my notice about 6 weeks ago for our small marketing agency - we had been filing our freelance graphic designers and copywriters on 1099-MISC forms instead of 1099-NEC. Like many others here, I had no idea about the 2020 form split and was initially terrified when I got the notice. After reading through IRS Publication 15-A (thanks to whoever mentioned that earlier!), I realized our situation was straightforward. The freelancers provide services, not goods, so they should definitely be on 1099-NEC forms going forward. What really helped me was creating a simple checklist for 2024 filings: 1. Update accounting software defaults to use 1099-NEC for service providers 2. Review all contractor classifications to ensure proper form selection 3. Keep the CP2100A notice filed with tax documents 4. Double-check all W9s are on file for documentation I also wanted to echo what others have said about the timing - getting these notices so late in the year when you're already thinking about the next filing season is frustrating, but it sounds like that's just how the IRS processes them. Thanks to everyone who shared their experiences here - this thread turned what could have been a stressful situation into a manageable compliance update!

I just went through this exact situation with my small real estate agency last month! Got a CP2100A notice for filing property inspectors and appraisers on 1099-MISC instead of 1099-NEC forms. The IRS language is absolutely confusing - I must have read it five times before I understood what they were actually asking for. From my experience and what my tax preparer confirmed, you're interpreting the notice correctly. The CP2100A is essentially the IRS saying "heads up, there's a mismatch - fix it going forward." For 2023, you don't need to file corrected returns unless they specifically request it in a follow-up notice, which is rare for this type of form discrepancy. For the SSN typo, definitely keep that W9 on file as proof you used the information the contractor provided. The IRS recognizes good faith efforts based on documentation received. One thing that helped me avoid this issue for 2024 was going through my accounting software (I use QuickBooks) and updating the default 1099 settings. There was a preference buried in the contractor setup that still defaulted to 1099-MISC for all payments. I had to manually change it to automatically generate 1099-NEC for service providers. The timing of these notices is terrible - getting them almost a full year after filing when you're already preparing for the next tax season! But it sounds like this 1099-MISC vs 1099-NEC confusion is incredibly common as businesses are still catching up to the 2020 form changes. You're definitely not alone in dealing with this!