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 were notices mailed?

  • For the 2023 process, notices were mailed May 5.

How long do merchants have to submit corrections?

  • In the 2023 process, merchants have until June 5, 2023 to submit corrected data.

Who does this impact?

  • Merchants whose BusinessLegalName, SSN or EIN did not match their IRS 1099-K filing in 2021 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 their '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 who 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 what registered with the IRS.