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TIN Matching 2020: Why the IRS isn’t as scary as you think

TIN Matching – For many, the IRS is the monster under the bed. The not-so-secret fear of all who have something to report. The IRS is characterized as the grim reaper, waiting to destroy you.

Tax1099 TIN Matching Feature

At Tax1099, we’re in almost constant communication with the IRS. We’re here to tell you that this grinning goblin depiction is unfair. We’ve gotten to know the IRS pretty well over the last 10 years of being an IRS-approved eFiler. Yes, the IRS is very stern. We’re fairly confident they mean well, though. 

And we’ll tell you why:

Filers are frightened by the filing penalties that the IRS can deal out. File a vendor name and taxpayer identification number (TIN) that doesn’t match what the IRS has on record? You’re looking at a fine of $260 per instance. 

To some filers, it seems like only a matter of time. What if a vendor has messy handwriting? When it comes to filing season, you’re suddenly not sure if that TIN is XXX-XX-1889 or XXX-XX-1989… What if the vendor accidentally put down a nickname on their W-9? Or, in some cases, what if the vendor intentionally supplies false information, trying to avoid being responsible for taxes?

“We’re at the mercy of the IRS!” filers everywhere cry.

We’re going to bust that ghost story wide open.

Ever heard of TIN matching?

The IRS allows filers to check vendor name and TIN combinations against what the IRS database. This is their way of saying, “hey, alright, let’s take all the mystery out of this.”

Okay, so, how do you TIN match?

The TIN matching feature through Tax1099 allows you to identify problems with your information. You can TIN match anytime, even when you first collect the W-9 from the vendor.

You can also TIN match as you’re going through the eFiling process. We can schedule your forms to submit after you send the TIN match request. This will give you time to make edits to your forms before they’re filed,
rather than having to file corrected forms later.

Say you are filing today. We will automatically schedule your forms to send to the IRS a week from the date your pay and submit. (Important Note: You can change this, if you’d rather the forms send immediately, or
send later! Totally up to you.)

When you submit a TIN match request, you get your results back in 48 business hours. You can then follow up with vendors, if the match was rejected. If you get new information, you can edit your forms.

Tax1099 & TIN Matching Feature

 Just one of the neat little things you can do with Tax1099!

If you would like to use the TIN matching feature during your filing process, go to the “Select Forms” page and find the column that says “TIN Match.” Then, click the checkbox for each recipient you would like to Match.

From there, we’ll send the request to the IRS to match with their database. You’ll have a chance to edit vendor info for matches that fail. If the TIN and Name combination are accepted, your information is good, and you can go forward confidently in filing.

We know you’re wondering… And yes, you can still submit forms, even if the TIN match is rejected. If the vendor assures you the information is correct, you can still file. In most cases, the penalty for no filing exceeds
the penalty for filing with incorrect information.

We hope opting into Tax1099’s TIN Matching feature adds peace to your filing process this tax season.

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