What is TIN Matching
TIN matching is a service used by the filers to check the 1099 contractors‘ names and tax ids of with the IRS records. By providing the legal name, TIN, & TIN type, you can check whether the name/TIN combination matches the IRS records. With the help of TIN Match checking, you can make sure that you are filing 1099 with the correct details. Besides, the IRS penalizes for mismatch of Tax ID/name combination.
So, avoid penalties & use Form 1099 Online TIN matching services. Use our services and verify the TIN & name combination before transmitting 1099 Tax Forms to the IRS.
Importance of TIN match before filing 1099
TIN plays a specific role when filing 1099 information returns with the Internal Revenue Service. With the help of TIN, the IRS checks whether the contractor is reporting 1099 income or not. So, the IRS will easily catch the errors that occur in the TIN/name combination.
The penalty for mismatch of TIN/name combination could be nearly $280 per mismatch. So, the best practice is to match TIN individually or in bulk at the year-end before sending 1099.
Does TIN matching required when filing a 1099 Form?
TIN matching is not mandatory but the IRS recommends every individual file Form 1099 accurately. Filing 1099 with incorrect TIN may lead to facing heavy & hefty penalties. The IRS issues B notices and also withholds nearly 24% from future payments.
What to do if the TIN doesn’t match with the IRS records?
Contact the payee immediately & request the contractor to provide accurate information. After receiving the correct details, you can update them in the payee records. Thus, our e-filing system automatically performs another TIN match check. The TIN match process is continued until the TIN/name combination matches with the IRS database.