Easily verify your vendor information, avoid penalties, and file securely with Tax1099’s unique TIN matching feature.
As tax year rolls in every year, businesses prepare to file their 1099-MISC forms and most recently, Form 1099-NEC to the IRS to declare the nonemployee compensations.
This includes payments made to independent vendors. Additionally, specific instructions laid out by the IRS show that businesses need to match their TIN to avoid penalties of up to $100.00 (per TIN mismatch) and B-Notices.
As a business owner, you can match your Taxpayer Identification Number and file your forms to the IRS effortlessly with Tax1099’s TIN matching feature.
If you’re new to TIN Matching and not sure about how to get started, just keep reading.
If you are looking for a step-by-step guide to TIN matching, then you should definitely give this a read.
This blog will cover all you need to know about TIN matching and the advantages of utilizing Tax1099’s TIN matching feature.
So, let’s get started.
What is TIN Matching?
T – Taxpayer’s
I – Identification
N – Number
The acronym is pretty self-explanatory. It’s a unique identification number issued to individuals and businesses for tax purposes.
There are different types of TINs
- Employee Identification Number (EIN)
- Social security numbers (SSNs)
- Individual Taxpayer Identification Numbers (ITINs)
- Tax Identification Numbers For Pending U.S. Adoptions (ATINs)
- Preparer Taxpayer Identification Numbers (PTINs)
For now, let’s stick to the urgent subject at hand – TIN issued to businesses.
The fundamental purpose of TIN is to cross-check the information filed by the payer with the database of the IRS.
Now, this particular point may leave you thinking “why is TIN matching important?” or “How would TIN matching affect my filings?”
Your questions will be answered as you keep reading.
How TIN Matching Affects Your Filings
- TIN matching allows businesses to reduce the risk of filing wrong information to the IRS
- Businesses can file their TINs in bulk or interactive methods easily through the e-services available on the official website of the IRS
- TIN matching allows businesses to understand if the payee’s TIN and name combination reported on the W-9 form matches the TIN and name combination records of the IRS
- When done in advance, TIN matching helps you check the total number of TINs that are incorrect and allows enough time to provide the right information
- If not filed correctly, the IRS exercises its right to penalize businesses with fines up to $100.00 or even more
If you are interested in learning more about the TIN Matching procedures, we recommend you give this downloadable PDF published by the IRS, a good read.
TIN Matching with Tax1099
Tax1099 is an IRS compliant information filing platform trusted by over 150,000 businesses globally. Many businesses continue to use our interactive and bulk filing services to report to the IRS before the due dates.
Our automated 3-step e-filing process, one-point access control, and timely email updates help businesses stay on top of their tax game each tax season.
The Advantages of Choosing Tax1099’s TIN Matching Feature
Let’s discuss about the advantages of choosing Tax1099’s TIN Matching feature.
Tax1099 offers easy bulk TIN matching services, where you can either manually enter the information or import all your data through our dynamic accounting and data management integrations, such as QuickBooks, Zoho Books, Bill.com, and other tools to upload your data for TIN matching easily.
Real-Time Status Updates
Once you have imported the information, everything is pretty much automated from here. We will send the information you have submitted to the IRS and update you as soon as the IRS notifies us about the status of your bulk TIN matching.
The IRS usually takes about 24 hours to provide a definite status, which means that after careful validation, the IRS may either accept or reject your TIN filings. If rejected, you may have to follow up with your vendors to provide the right information.
Some businesses find it really difficult to manage TIN matching and other e-filing procedures with their busy schedules. With our API integrations, we will work in accordance with your developers to import your data. This simplified process would allow you to cut down on paperwork, cost, and time by at least 50%.
There are many such features to explore with Tax1099’s TIN matching services.
How to Get Started
Want to get started but not sure how? Learn all about it here
Here is a simple rundown on all the key steps to successfully file your TINs with Tax1099.
Step 1: Log into your Tax1099 Account
If you’re new to Tax1099, you can register with us by creating your own Tax1099 account for free.
Once signed up, you can log into your Tax1099 account and click on the TIN matching service button.
Step 2: Select ‘Interactive’ or ‘Bulk’ Session
If you’re an individual or a sole proprietor, you should select the Interactive session. If you’re a business, you have to choose the Bulk session and provide all the necessary documentation as required, to be compliant with the IRS.
Please note that interactive sessions will take less than a few minutes or an hour for the IRS to accept or reject your filing. Bulk sessions may take longer, ranging from a few hours to 48 hours.
Learn in detail about the complete process, terms, clauses, consequences of not complying with the IRS, penalties, and much more from the official publication of the IRS here.
Are you ready for the tax year 2020-2021?
How do you plan on filing your TINs and 1099s?
Comment below. If you have any questions regarding the e-filing procedures, we recommend that you check out the official website of the IRS. If you need further assistance with bulk filing your TINs, you can call our support team here for assistance.