B Notice Summary


Merchants whose tax information was incorrect in prior years may receive a notice from the IRS through ProPay indicating they need to update and validate the tax information on their account to avoid funds being held or processing being disabled.



Why did I receive this from ProPay?

  • Merchants who either have a direct relationship with ProPay, or who use an affiliated partner leveraging ProPay's payment processing platform will receive IRS 1099-K B Notices direct from ProPay.


When will the notices be mailed?

  • For 2025, notices will be mailed May 23rd.


How long do merchants have to submit corrections?

  • In the 2025 process, merchants have until June 23, 2025 to submit corrected data.  Any merchant that does not provide the required documentation on or before June 23, 2025 will have their processing deactivated. 


Who does this impact?

  • Merchants whose BusinessLegalName, SSN or EIN did not match their IRS 1099-K filing in 2024 and still does not match.


What action is required?

  • Merchants who receive a 1st notice should submit a current W-9, SS4 or 147c letter to clientsupport [at] propay.com
  • Merchants who receive a 2nd notice should submit the following to clientsupport [at] propay.com: 
    • If filing under their SSN, submit a copy of their Social Security Card
    • If filing under an EIN, submit form SS-4 or a 147C letter from the IRS
      • 147c letters can be requested from the IRS by calling 800-829-4933
    • W-9 is not sufficient to address a 2nd B-Notice.


What are common situations where data does not match?

  • Merchants have listed a fictitious business name or 'Doing Business As' value as 'Business Legal Name', which is not registered with the IRS.  The Business Legal Name for an unregistered sole proprietor is just the person's name.
  • Merchants have listed a fictitious business name or 'Doing Business As' value as 'Business Legal Name', instead of the actual name used when registering for their EIN or business Tax ID.
  • Social Security Number submitted as EIN, when the business actually has a registered name and EIN.
  • Other situations where Business Legal Name or Tax ID at ProPay do not match what is registered with the IRS.


Do you have samples of B Notice letters mailed out by ProPay to merchants?

  • You should find PDF mailer examples of First B Notice and Second B Notice letters available for download at the bottom of this page.