What is a B-Notice?
A B-Notice informs you that your Tax ID or other identification numbers don’t match what the IRS has on file. These notices are sent from the IRS on a yearly basis. If the required documentation is not submitted by this year’s deadline of January 14th, your account will be restricted to closing only orders—and the proceeds from those sell orders will be subject to 24% IRS withholding, along with dividends and all other cash proceeds.
How do I know if I’ve received a B-notice?
You would have recently received an email correspondence in January 2019 in one of the following ways:
- Robinhood Securities
- Our former clearing partner, Apex
- A push notification regarding a B-Notice
How do I satisfy my B-Notice?
If you received your first B-Notice:
To satisfy the IRS requirement, you will need to complete a W-9 form. The form was sent via email from firstname.lastname@example.org and the subject of the email will be “Please DocuSign W-9 to Continue Using Robinhood”.
You can review the form, adopt a signature, and complete the signing process without having a DocuSign account. Simply click “Review Document” in the email, fill out all of the required fields, and sign the form. To prevent 24% IRS backup withholding, it’s important that you take care to follow these directions before January 14th.
If you received your second or final B-Notice:
Please note that the IRS requires a signed social security card to be on file if a second B-Notice is to be removed. To satisfy the IRS requirement, tap on the “VERIFY YOUR SSN” card in the Robinhood app, and please upload a clear, legible photograph of your signed social security card. To prevent 24% IRS backup withholding, it’s important that you take care to follow these directions before January 14th.
For additional information on B-Notices and backup withholding, please visit the IRS informational website.