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Real-Time TIN Matching

5 Advantages of Using Real-Time TIN Matching For Your Business

Businesses are relying on TIN matching solutions to check and validate the accuracy of the TINs and the credibility of the vendors. While TIN matching is fundamentally seen as a regulatory compliance practice, it is much more than that.


TIN matching acts as a linchpin to a business, where potential investors, partnering businesses, employees, and even vendors will not associate with a business if it does not have a valid IRS-assigned TIN.


When vendors, freelancers, or small businesses, in a rush to start earning, do not do the groundwork and proceed to look for prospects, later realize that TIN is not something that can be left unaddressed because TIN defines the legitimacy and risk factors of the business.


When you approach another entity or individual for some kind of a business arrangement; let’s say, a freelance-employer arrangement. The first thing both entities must do is check the TINs or TIN Check.


This helps the hiring entity understand if the vendor is in good standing with the IRS and worth the risk and additionally, helps the vendor understand if the hiring entity can meet their financial commitments.


This is the level of understanding that most businesses hold when it comes to TIN matching today.


This is also the reason why many businesses have started to invest in real-time TIN matching solutions, such as Compliancely, which help you identify, validate, and verify over 100,000 TINs in less than a minute.


Compliancely, however, is not just a TIN check enabler. It’s a powerhouse of identity checks, which allows you to screen entities and individuals against a variety of authorized data lists.


Today, we will discuss some of the advantages of real-time TIN matching and delve into the value TIN matching brings to a business.


Easy TIN Lookup & TIN Accuracy


Real-time TIN matching solutions from Compliancely allow you to check the TINs, SSNs, ITINs, EIN, and more per the authorized records of the IRS and social security administration in real-time. This means all your TIN searches are returned to you with the latest, and the most recent status of the TIN, enabling you to check if the TIN provided by an individual or an entity is valid.


Compliancely’s accelerated TIN matching solutions means you can search for more TINs in less time. With more than 100,000+ TIN checks in a minute, you can check, double-check, and even triple-check your data to ensure that the TINs match the IRS records.


What’s more? 1099-NEC reporting, which requires vendor TINs, can be powered with accurate real-time TIN and name match.


Optimized Vendor Onboarding


Compliancely’s Real-time TIN matching optimizes the vendor onboarding process with its quick and accurate TIN match results. Many businesses proceed to work with independent contractors without checking the vendor TINs during the onboarding process or choose to overlook any TIN mismatches with an approach to address them at a later point in time.


Some might even choose to ignore TIN matching altogether prior to onboarding to save time. But here’s what we have gathered from a collective of entities that ignored TIN matching.


It will cost you – in a BIG way.


Ignoring TIN matching means setting your accounting team up for a steaming hot mess during the filing season which leads to the last-minute TIN solicitation. However, by this point in time, you have already paid your vendors the promised compensations and they will not respond to any of your communications.


By prioritizing TIN matching during the vendor onboarding process, your business can avoid high-risk vendors and prevent the year-end rush induced by insufficient or incorrect vendor tax information.


KYB Compliance


Many businesses are not onboarding independent contractors or freelancers until the TINs are obtained and validated. What’s even more interesting is that many businesses are holding off any business arrangements with freelancers if the furnished TINs do not match the IRS records. This is due to the increased instability within the gig economy ecosystem.


Hiring an unverified vendor is costing businesses not just productivity hindrance but compromised business security. Did you know that social engineers have found new ways to hack into your business ecosystem by pretending to be a freelancer and carefully obtaining sensitive information about your company without you even realizing it?


Research shows that freelancers are the weakest links to the data breach, keeping your business in a compromised position.


Real-time TIN matching can help you navigate your business past social engineers in the garb of independent contractors with accurate identity validation.


You can also explore other identity checks from Compliancely to power your KYC/KYB compliance.


Reduce B-Notices & Incorrect TIN Penalties


If you report a wrong TIN, the IRS will penalize your entity by at least $250 for every incorrect TIN reported. This is why businesses are investing in fast, accurate, and reliable solutions like Compliancely, which offers real-time TIN matching checks and re-checks as and when the IRS records are updated.


This way you can prevent being issued B-notices and IRS penalties for reporting incorrect TINs.


Eliminate Up To 50% Workload


One of the best things about Compliancely’s real-time TIN matching is that you can scale up your identity verification ops as much as you want and remove as much as 50% burden off your internal compliance teams.


Think about all the time saved and how your teams can utilize the same, extra time on something productive instead of manually reviewing the TIN and name information over and over.


Compliancely’s IRS TIN matching allows you to search TINs in bulk and get the automated TIN match reports to your email. With seamless API solutions, TIN matching is no longer a daunting task.