TIN Matching is one of the most important elements of a robust KYC/KYB process. If you’re someone who works with independent contractors, freelancers, gig workers, and vendors, you already know the significance of TIN matching.
1099-NEC reporting guidelines instruct the payer (the employer or the business owner or the entity that’s paying the vendor) to report the payee TIN in the form, indicating that the vendor TIN is critical for tax compliance.
TIN matching is the simple practice of validating the real identity of an individual or an entity against the IRS records in real-time. The TIN and the legal name of the individual or the entity provided in the W-9 form must match the official records of the IRS; making it a TIN match.
Omitting to report the taxpayer identification number in the tax returns will imply TIN discrepancy penalties from the IRS.
A process this significant must be a part of your business and accounting ecosystem because it allows you to eliminate non-compliant profiles and onboard verified profiles, simplifying your accounting experiences.
If you’re someone who has dabbled with automated TIN Match solutions before, you might be in for a pleasant surprise with Compliancely. And if this is your first time looking for a real-time TIN match automation solution, Compliancely is a great start.
The following will discuss in detail how Compliancely’s real-time TIN match automation can give your business that competitive edge in a sleek manner.
So, let’s get to it.
- Onboard Verified Vendors Faster
Compliancely’s TIN matching automation enables you to validate 100,000+ vendors in a minute, accelerating your onboarding procedures. With a real-time TIN check system, your TIN inquiries are validated against the real-time IRS records, giving your compliance investigations the accuracy they need.
And this is a highly scalable identity validation infrastructure that works to your advantage. You can scale your TIN match volume depending on your requirement with a turnaround time of 30 seconds or less.
- Automate Vendor Compliance
You can automate your vendor compliance process and eliminate the redundant procedures of TIN matching for every quarter and/or every tax year.
With Compliancely, you can easily import your bulk data and validate the TIN and legal name combinations within minutes. This dynamic identity verification infrastructure is in sync with the source (the IRS) at all times, which means that as and when the official records are updated or renewed, our systems also update the data lists in sync with the IRS. This is when your data is re-screened to ensure accuracy.
In a nutshell, Compliancely’s real-time TIN match automation is the best way to prevent TIN discrepancies and penalties for reporting incorrect TINs.
- Accelerate Digital Account Opening
Digital is the new normal. Embracing the perks of technology with modern and secure digital account opening systems is enabling businesses to provide easier access to services and products.
Implementing and automating TIN matching within this first-level experience will remove barriers to compliance, eliminate high-risk profiles, and improve the quality of the customer profiles onboarded. This, in turn, results in time-effective, smoother, and streamlined account opening experiences.
- Identify & Assess Risk From The Start
Many businesses are now operating digitally to onboard users remotely. Think of neo banks that onboard customer profiles from around the world a digital freelance network that works with remote independent contractors, or even an e-commerce giant that is connecting with other businesses to establish B2B sales experiences.
If you’re someone from the above enterprise industries or understand the gist of the use cases, you just know the amount of inertia the last-minute KYC verifications can imply.
Your customers can be so tired of the comprehensiveness of the KYC procedures that they may abandon the very funnel that brought them to your services in the first place.
When the intent of the user is to look for a service or shop for a product, that’s not the time to prompt for KYC verification. Planning your KYC verification (and thereby TIN Match) process around your CX is the key.
Automate TIN match during the account creation process and verify the profile thoroughly. Allot or assign an account only after the verification has been completed from your end. This will enable a smoother account creation experience and improve the risk assessment capacities of your organization.
- Improve Customer Experience
Compliancely blends into your digital account opening experiences without disturbing the first-glance interface.
The TIN match automation process can be customized into your CX to enable a smoother transition for fresh sign-ups. Older customers can be verified easily since you already have the data, which can just be imported to Compliancely’s data dashboard.
Your customer data is screened repeatedly to look for duplicated, invalid, incorrect, renewed, and updated records. This helps you maintain accurate and valid customer records at all times.
- So, What’s Holding You Back?
Leverage the speed, accuracy, and ease that Compliancely brings to your digital account opening, vendor onboarding, customer/client onboarding, and other B2B experiences.
While TIN matching is just the tip of the iceberg, Compliancely offers full-scale KYC and KYB checks customized to your systemic regulatory requirements.