A B-Notice informs you that the Tax ID or other identification numbers in your Robinhood Securities account doesn'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 November 27th, your account will be restricted to position-closing orders only. Additionally, the proceeds from those position-closing orders, dividends, and any other cash proceeds will be subject to 24% IRS withholding.
If you received a B-Notice, you should have received an email in November 2020 from Robinhood Securities.
You will need to complete a W-9 form to satisfy the IRS requirements. The form was to you in an email from firstname.lastname@example.org or email@example.com, with the subject line "[Action Required] Complete IRS W-9 Form.”
You can complete this process without a DocuSign account. Simply click “Review Document” in the email, fill out the required fields, and sign the form. Make sure you follow these directions before November 27th to prevent account restrictions and tax withholdings.
If this is your second B-Notice, the IRS requires us to keep a signed social security card on file. Tap on the card that says “VERIFY YOUR SSN” underneath your portfolio chart on the home screen of the Robinhood app. Then, follow the instructions in the app. Make sure to upload a clear, legible photograph of your signed social security card. Make sure you follow these directions before November 27th to prevent account restrictions and tax withholdings.
For additional information on B-Notices and backup withholding, please visit the IRS informational website.