IRS NOTICE REFERENCE
Understanding your CP546 notice
This notice provides a payer, upon request, with a list of payees currently subject to backup withholding due to underreporting.
General information only. Not legal or tax advice.
Notice details
- Notice code
- CP546
- Category
- Underreporter / income matching
- Severity tier
- Tier 2 — Action or response expected. The IRS has taken or proposed an action and expects a response or payment.
- Governing law
- §6201; §6212 (Internal Revenue Code sections)
- Source
- IRS.gov — Understanding Your IRS Notice
What this notice is
This notice provides a payer, upon request, with a list of payees currently subject to backup withholding due to underreporting.
Source: IRS.gov. Reproduced for reference. General information — not legal or tax advice.
What the IRS says to do
Protect payee (taxpayer) information or you could be subject to civil damages for unauthorized disclosure (Internal Revenue Code section 7431).
This is the IRS’s own guidance reproduced from the IRS notice page. It describes the IRS’s process — it is not legal or tax advice from TaxRiskOS.
Governing IRS procedure (Internal Revenue Manual)
The IRS’s own internal procedures for handling this notice type are documented in the Internal Revenue Manual:
- IRM 4.19.3 — 4.19.3 IMF Automated Underreporter Program
- IRM 4.19.2 — 4.19.2 IMF Automated Underreporter (AUR) Control
Reference to published IRS procedure. General information — not legal or tax advice.
Official IRS reference
Read the official notice page on IRS.gov: https://www.irs.gov/individuals/understanding-your-cp546-notice
Related tools
TaxRiskOS is workflow software for practitioners — it captures the notice, computes the deadline, surfaces the escalation tier, and builds a document checklist. It documents process; it does not give advice or draft responses.
Check this notice’s deadline (free tool)