IRS forms have a dedicated box or field that specifically reports the taxpayer identification number (TIN) or employer identification number (EIN) or ITIN. When businesses fail to report the TIN accurately, the IRS hits back with a B-Notice which requires the filer to correct the incorrect TIN.
When businesses do not address this citation and fail to file a form with the corrected TIN, the IRS can assess penalties for each incorrect TIN reported in the form. Each incorrect TIN reported can cost you at least $250 in penalties + interest. The penalty will continue to accrue interest until the amount is paid in full.
Intending to avoid the taxing penalties of reporting incorrect TINs, businesses are paying attention to TIN Matching. Some businesses choose to check and validate the TINs against the IRS database through the IRS TIN Match system.
However, when businesses are working around fast-approaching deadlines, verifying TINs in large volume will need accelerated focus and quick results. This can be established through Compliancely’s Real-time IRS TIN Matching solutions.
The following scenarios are indicative that your business needs a robust TIN Matching solution, one that is offered by Compliancely. Let’s discuss these signs in detail.
Your business observes an influx of customer profiles
Be it a bank, lending company, insurance agency, or any other business that deals with a high volume of incoming customer profiles, TIN matching is not just a compliance protocol but a necessity.
Verifying the TINs through an authorized platform like Compliancely will enable you to validate the TINs per the official records of the IRS, enabling you to check if the profile’s TIN matches the IRS records. Additionally, this identity check will allow you to verify if the profile is in good standing with the IRS.
Your business hires independent contractors
If your business is navigating its growth map through the gig economy or any other emerging industry where your operations are dependent on external help, you certainly need a reliable TIN matching solution.
Validating the identities of the vendor by vetting the TINs will enable the following.
- Check the credibility of the vendor
- Reduce the hassles in the vendor onboarding process
- Make W-9 solicitation effortless
- Eliminate year-end rush for accounting processes
Your accounting team is stressed during the 1099 season
Your accounting teams are heavily dependent on TIN verification or TIN Lookup solutions during timeline-sensitive filing seasons. This means your business is looking at eliminating manual intervention during these times and accelerating the reporting process through smart automation.
Compliancely’s Real-time TIN Matching enables you to validate the TIN (taxpayer identification number) in just a few seconds. You can check as many as 100,000+ TINs in less than a minute, powering your accounting teams with smart solutions.
Your IRS forms have been rejected for reporting incorrect TINs
Businesses can be imposed with B-notices and heavy penalties when the filed returns report incorrect TINs.
When you are observing that the IRS is responding with B-notices or rejecting the returns frequently, citing incorrect TINs, you must consider incorporating a smart TIN matching solution like Compliancely, which would accelerate reporting accuracy by at least 50% and save your business time and effort.
Verifying TINs in bulk is becoming a humongous task
The IRS TIN Matching system allows businesses to verify up to 100,000 TINs and the results can be retained in 24 hours. This may not seem like a big deal to an outsider, but to your accounting teams, this means 24 hours of anxiety and a painful wait to check if the uploaded data matches the IRS records.
Further, the IRS requires businesses to upload the bulk TIN data in a very specific format, which is a huge task on its own.
With Compliancely, you can leverage the available data management integrations, like Excel, and upload the data in a single click. No more worrying about formats. You can check 100,000+ TINs in less than a minute and retain the TIN Match results within seconds, saving you time. You can even scale up the search volume as you grow.