Here’s how Tax1099 simplifies your due diligence and tax compliance experiences.
Crypto exchanges deal with a variety of customers. Some are completely harmless, while others may only seem harmless. Unvalidated customer profiles could potentially bring a lot of risk to your crypto exchange.
Money launderers and terrorism financiers approach crypto exchanges in the garb of good customers. Once on board, the high-risk profiles proceed to misuse the financial technologies and the ecosystem you offer.
This could potentially damage your business reputation, and bring in legal and financial liabilities.
Thankfully, this gloomy picture can be easily prevented with a few risk mitigation measures
and compliance regulations.
The following will detail how Tax1099 can help you incorporate due diligence processes easily and apply digital-first solutions to achieve tax compliance.
So, let’s get started.
Easy Electronic W-9 Solicitation
In order to get to the due diligence processes, you will need some basic identification information from your customers.
Information, such as the legal name, taxpayer identification number (TIN) or social security number or employer identification number (EIN), address, and even a copy of the social security card, helps you obtain the basic identification of the customer.
Use Tax1099’s W-9 e-Solicitation solutions to obtain the customer’s TIN and legal name, along with their address. A W-9 form is an IRS form exclusively meant for obtaining certified TINs from customers.
Real-Time TIN Matching
Validate the obtained TINs and legal name combinations with the real-time TIN Matching solutions from Tax1099. With Tax1099, you can verify 100,000+ TINs in under a minute. That’s a million+ TINs in 10 minutes.
Import your customer TIN data with the available integrations to Tax1099 securely. Select the data you want to validate and Tax1099 will verify your TIN/legal name combinations in real-time per the IRS records.
Verify & Match Customer Addresses
Validate and match the customer addresses per the USPS records with Tax1099’s USPS Address Validation Search.
Maintaining a database of your customer addresses will help you with mailing IRS form copies and helps with other business communications.
With the USPS address validation check, you can validate if the address matches the USPS records, and helps you format the address per the official records.
KYC & KYB Checks For AML Compliance
Apart from real-time TIN Matching, Tax1099 offers key KYB and KYC checks, such as OFAC Watch List, SOS Entity Search, Blocked Persons/Entities List, Death Master File, Specially Designated Nationals check, and other AML-ATF compliant checks.
These checks must be incorporated into your due diligence processes for in-depth vetting.
AML/ATF checks help you prevent onboarding high-risk profiles with a history of money embezzlement, money laundering, terrorism financing, and restricted arm exports.
Due diligence checks, such as the ones offered by Tax1099, help you prevent onboarding profiles that have been detained by the federal government for violating U.S. national security regulations.
Validate Data Against The Source Records
You might be wondering, ‘how does Tax1099 validate bulk identity verification queries?’.
Well, Tax1099 is directly connected with the source – the IRS and other federal agencies, to provide the most accurate results to your identity inquiries.
If you don’t already know, Tax1099 is an IRS-authorized agent, enabling tax information reporting and regulatory compliance experiences for 200,000+ businesses.
What’s even better is that Tax1099 automatically re-verifies the data as and when the source records are updated, providing you with consistently accurate identity results throughout.
eFile 1099 Forms & Other IRS Forms With Ease
The above solutions are focused on obtaining and validating customer data for easier account opening experiences driven by due diligence checks. But Tax1099 enables compliance experiences that are beyond identity validation.
Create, prepare, and eFile 1099 forms and other relevant IRS forms to report your crypto exchange’s transactions and reportable information.
Take a look at our IRS Form Directory and see how Tax1099 enables a variety of e-Filing solutions that can be customized to your use case.
Crypto exchanges like yours choose the following eFile solutions the most.
Streamlining Your Crypto Exchange’s Customer Onboarding Experiences From A To Z
Tax1099 provides tax information reporting and regulatory compliance solutions to businesses of all sizes.
Right from obtaining TINs through W-9 forms to scheduling your eFiles, Tax1099 does it all.
As tax experts, we aim to provide solutions that make your life convenient.
Tax1099’s tech-first solutions help you, onboard customers, confidently. With reliable identity verification solutions backed by source records, you can validate your customer profiles easily and set up an internal ecosystem to review and assess risk.
But it’s not just that.
Tax1099 also helps you comply with the regulatory norms, verify a variety of customer and tax data, and eFile the IRS forms as necessary.
Thousands of businesses worked with Tax1099 to get help for their most painful processes. Our identity verification and eFile solutions address these processes by driving home convenience and accuracy.
Join hundreds of thousands of businesses like yours that believe in Tax1099.
Other Useful Blog Posts From Tax1099
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- The Importance Of TIN Matching For Crypto Exchanges
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