The Taxpayer Identification Number (TIN) matching feature of the IRS

[Adam Fleming]

Any company or individual that is required to submit IRS Form 1099 can avail a facility the Internal Revenue Service (IRS) has: the Taxpayer Identification Number (TIN) matching. This matching or likeness is among an assortment of e-services that gives what are called “authorized payers” the opportunity to match and state their own 1099 payee information with the pertinent records from the IRS. The TIN matching is a pre-filing facility, since it is done before an entity files information returns.

The definition of an authorized payer

In understanding the need for and the workings of the Taxpayer Identification Number; a basic understanding of who an authorized payer is, is necessary. According to the IRS, anyone who has been filing the designated and required forms with the IRS for at least a couple of years qualifies as an authorized payer. These are some of the forms an authorized payer is required to fill up:

o  1099-B

o  1099-DIV

o  1099-INT

o  1099-K

o  1099-MISC

o  1099-OID

o  1099-PATR.

Understanding the advantages of the Taxpayer Identification Number (TIN) matching

The job of a filing entity that uses the Taxpayer Identification Number (TIN) matching is made easier because of the benefits the Taxpayer Identification Number carries. In carrying out its function of matching the payee name and TIN with IRS records; the Taxpayer Identification Number does the following:

o  It ensures the accuracy of 1099

o  Removes B-Notices

o  Ensures that legitimacy of suppliers and thus prevents fraud

o  Leads to drop in notices relating to backup withholding and penalty

o  Cleans up the supplier master file by identifying spurious suppliers

o  Brings down the rate of errors in TIN validation

Another major advantage of the matching is that it allows the entry of the entity’s name and TIN into the IRS e-services TIN Matching Program and the IRS will notify once there is a matching of the name and number submitted. This means that when there is a matching between the name of the entity and the Taxpayer Identification Number; such an entity will not receive an IRS Backup Withholding Notice when preparing the Forms 1099.

Also, using the Taxpayer Identification Number matching program prior to submission of forms 1099 saves the company potential penalties. It also gives a good window of time to the entity or other employees when it comes to responding to IRS "B" Notices and the other resulting correspondence to vendors/payees.

Gain full knowledge of the Taxpayer Identification Number matching program

While there is no doubt that the Taxpayer Identification Number matching program carries enormous advantages; knowing how to use it and filing Form 1099 and the W-9 is necessary, because they can be complex and nasty for those who are not familiar with the internal workings of these documents.

An understanding of the process that needs to be adhered to in order to get the Taxpayer Identification Number matching right is the learning a webinar from Compliance4All, a highly reputable provider of professional trainings for all the areas of regulatory compliance, will be offering.

The speaker at this webinar, Greta Hicks, will demonstrate how to use the right method for getting the Taxpayer Identification Number right. Being a former IRS Revenue Agent and Regional Training Coordinator and the author of "IRS Examination and Appeals Procedures"; Greta is an authority on the IRS. To enroll for this webinar and understand how to get the Taxpayer Identification Number matching and other related aspects right, just log on to http://www.compliance4all.com/control/w_product/~product_id=501181

Use of the Taxpayer Identification Number matching feature is not required by law

Although the Taxpayer Identification Number matching brings its benefits, the use of this feature is not mandatory. It is desirable. So, it is better for entities to use it in order to save money, time and future possible penalties. At this session on Taxpayer Identification Number matching, Greta will cover the following areas:

o  What are IRS e-services?

o  How to apply to use IRS e-services

o  What is TIN Matching

o  When to use IRS TIN Matching

o  Advantages of IRS TIN Matching

o  What are IRS "B" Notices

o  Potential IRS Penalties.

https://www.irs.gov/government-entities/indian-tribal-governments/t...