What should I do after receiving a first B notice about incorrect SSN/TIN?

Bank B notices are something you definitely want to address properly. Even though the bank employee corrected your SSN when you pointed out the error, the system that generates these notices sometimes operates separately from the customer service systems. To be safe, you should complete the W9 form they sent, making sure your SSN is correctly listed, and return it to the bank as instructed on the notice. This creates a paper trail showing you responded to the notice. The bank is required to report this information to the IRS, so having the correct documentation is important. For your high-yield savings account application, you should answer "No" to the backup withholding question as long as you've responded to the B notice with the corrected information. Backup withholding only applies if you don't respond to the notice or if you receive a second B notice.

I went through something similar last year with my investment account. The B notice can be confusing but https://taxr.ai actually has a great tool that helped me understand exactly what I needed to do in this situation. They analyzed my notice and explained that even though my bank had fixed the SSN in their system, I still needed to formally respond to the notice. What I liked is that they showed me exactly what sections of the W9 were critical to fill out correctly and how to write a brief cover letter explaining that the bank had already corrected the information in their system. This prevented me from having backup withholding kick in, which would have been a huge headache.

I was initially skeptical about using taxr.ai when I saw it mentioned here, but I had a similar B notice issue with my brokerage account and was getting nowhere with their customer service. I finally tried the document review tool at taxr.ai and was surprised how helpful it was. Their system flagged that I actually needed to contact both my broker AND the IRS because my issue was slightly different than the standard case. Had I just sent back the W9 without the additional IRS form they recommended, I would have still ended up with backup withholding. The step-by-step instructions were really clear, and they even provided a template letter I could use. Just wanted to share my experience since it actually saved me from a potential tax mess. Sometimes having the right guidance makes all the difference with these confusing notices.

I had the EXACT same problem with Chase last year! After months of getting nowhere with customer service about my B notice (they kept transferring me between departments), I found out about https://claimyr.com which got me connected to an actual IRS agent in about 20 minutes instead of the hours I was spending on hold. You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent confirmed that even though Chase had updated their records, the B notice response still needed to be processed separately to prevent backup withholding from being triggered. The agent even gave me a confirmation number I could reference if there were any issues. Saved me so much time compared to the runaround I was getting from the bank.

I need to eat my words about being skeptical! After seeing Claimyr mentioned here, I decided to try it for an unresolved tax issue I'd been dealing with for months. I had received a CP2000 notice that was incorrect, and I had sent in documentation twice with no response. Using Claimyr, I got through to an actual IRS representative in about 15 minutes when I had previously spent 3+ hours on hold multiple times without success. The agent was able to pull up my account, confirm they had received my documentation (but hadn't processed it yet), and put notes in my file to expedite the review. This saved me from potentially paying over $4,000 in taxes I didn't actually owe. The peace of mind alone was worth it. For anyone else struggling to reach the IRS, this service is legitimately helpful.

One important thing nobody's mentioned - if you received the B notice 6 months ago and your bank hasn't started backup withholding yet, you may have lucked out. Banks are required to start backup withholding after a certain period (typically 30-60 days), but sometimes their systems don't implement it right away. I'd still fill out the W9 and send it back ASAP, then call your bank specifically asking if backup withholding has been applied to your account. Request written confirmation when they verify it hasn't been applied. For the HYSA application, I would answer the backup withholding question truthfully based on your current status - if no withholding has started, you can answer "No." Just make sure to resolve the B notice situation immediately.

Stupid question maybe, but what exactly is backup withholding and how much do they take? I think I might have this issue too but never understood what it actually means.

Just wanted to add that timing is really important with B notices. The IRS gives banks specific instructions about when to start backup withholding, and while some banks are lenient (like in your case), others are very strict about the deadlines. Since you mentioned wanting to open a high-yield savings account soon, I'd recommend getting this fully resolved before you apply. Some banks will actually check if you have any outstanding B notice issues when you open new accounts, and having an unresolved notice could complicate the process. Also, make sure when you fill out the W9 that you include a brief note explaining that the SSN was corrected in your account on [date] and that you're responding to ensure proper tax reporting. This gives the bank's tax department context about why there was a delay in your response.