Companies that fail to keep a vigilant eye on ever-changing regulations face the possibility of incurring fines from the IRS. But if you focus too much on remaining in compliance, your business may suffer. Fortunately, we can help here at Tax1099.com.
We offer several ways to help you with your compliance efforts while minimizing the time you spend on it. Here are a few ways we can assist:
- W-9 e-Solicitation – you can use our W-9 tool to send an electronic copy of the W-9 to each of your vendors. They complete the form online, including signing it electronically with their mouse or a finger on a touchscreen. Any information they add to the W-9 automatically updates their record under your account in Tax1099.com. We attach a pdf version of their W-9 to their record as well, so you can refer to it at any time in the future. Obtaining a W-9 from your vendors is a vital first step in your relationship with them. As much as possible, you should obtain the signed W-9 before making any payment to a vendor.
- TIN Match – once you obtain the signed W-9 from your vendor, you can use our TIN Match feature to verify the taxpayer identification number and name combination the vendor included on the form. We send a request to the IRS database to confirm the information and report back to you whether that vendor was a match or a rejection. Matches mean that the IRS recognizes the TIN/name combo. A rejection means the vendor provided incorrect information, whether intentionally or not. You should follow up with any vendors you receive a rejected status for, because if you file a 1099 with the information they provided you will eventually face a penalty.
- B-Notice Tracking – should you receive a notice form the IRS about a mismatched TIN/name combo, it will come in the form a CP2100 or CP2100A notice, depending on the number of incorrect TINs you have. Those notices require you to send the vendor a B-Notice, which lets them know you will have to institute backup withholding at a rate of 28% if they do not provide their correct information. You also must track whether this is the first or second B-Notice for that vendor within a three-year period. We will offer a tool to track those B-Notices, send the vendor the B-Notice, collect the W-9, and allow you to see it all in one place.
- E-file 1099 and Other Forms – the IRS continues to expand the requirements to file information electronically. Currently if you need to file 250 or more 1099s or W-2s, you must file electronically. There is some talk of making the W-2 threshold much lower, and 1099s are likely not far behind. We have been providing e-file service for several years now, for customers who e-file one form to customers who e-file thousands. We have the expertise and experience to help you, too.
As government revenue collections fall behind government purchases, regulatory bodies look to means such as penalties to help make up the difference. We offer the most robust tools to help you stay in compliance, avoid fines, and keep your focus where it belongs – on your business.