Updated
I received a B-notice. What do I need to do?
What is a B-notice?
A B-Notice is a notification that is issued by the IRS to an individual (or entity) when the name and/or SSN (or Trust name and EIN) that is reported by Wealthfront Brokerage LLC does not match IRS records. These are commonly issued because there is a typo in the name or SSN on your Wealthfront account or your account is not registered under your legal name (i.e. shortened name/nickname or an incomplete name).
How does a B-notice affect my account(s)?
When Wealthfront Brokerage LLC receives a B-Notice for an account, we notify clients and provide a deadline for when the B-notice needs to be resolved.
If it is not resolved by the deadline, we will automatically withhold 24% on any interest earned in Cash accounts and/or dividends earned in Investment accounts. For investment accounts, we will also restrict trading, which means we won’t invest any deposits, reinvest dividends, or perform rebalancing and tax-loss harvesting (for taxable accounts) until the notice is resolved.
How do I resolve my B-notice?
You will be notified through email, physical mail, and in-app messaging when a B-Notice has been placed on your account. You can resolve the B-notice by logging in, and filling out a Form W-9 directly through the Wealthfront website or app. You’ll be required to provide a few pieces of information including your full legal name, your Social Security number, and in some cases, a photo of your Social Security Card.
Once you've completed the steps to resolve your B-notice, we’ll review it within two weeks and send you an email confirmation when we’ve completed our review.
If you choose to resolve your B-notice through physical mail, you can send back your completed W-9 for our review. If you need any assistance completing the W-9, please see the instructions listed at the end of the form.
If we identify a discrepancy between the information you provided and the information on your Wealthfront account, we will update your account profile.
I previously received and responded to a B-notice, why am I receiving it again?
The IRS has indicated that there is still a discrepancy on file. If the information on file already matches the information on a client’s Social Security Card, we will need a copy of your Social Security Card dated within the last 6 months to resolve the discrepancy. You may need to reach out to the Social Security Administration to obtain a new card if it is dated longer than six months.
Could my middle name cause a discrepancy?
The IRS verifies against your legal first and last name only. However, if your middle name is included in your legal first or last name for tax filing purposes, but not listed on your Wealthfront account, this could cause a discrepancy. We’ll ask you to verify your first, middle, and last name just in case.
What if I need to make a withdrawal before my B-notice is resolved?
If you'd like to withdraw from an Investment account before resolving the B-notice, we'll need to withhold 24% on the proceeds from the sale of securities. We’ll also need your request in writing to proceed with the withdrawal, which you can send to support@wealthfront.com.
Any amount withheld will be sent to the IRS and cannot be refunded to your Wealthfront account if you resolve the notice at a later date. For more information, please visit the IRS website here.
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