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Avoid Penalties & Fraud with TIN Matching
What is TIN Matching / EIN Validation?
TIN (Taxpayer Identification Number) Matching, also known as EIN Validation, is an important step in the due diligence and KYC/KYB process. Not only does ensuring a TIN is correctly matched with an entity help validate the entity’s existence, but it mitigates the potential for fraud.
By using our TIN Matching and EIN Validation services, organizations can also reduce potential IRS penalties for incorrect information on filings such as a 1099.
How using a TIN Matching service can help your business
The IRS continues to raise penalties for including incorrect information on filings, such as Form 1099s.
Using our TIN Matching and EIN Verification services allows your organization to ensure the TIN and entity name provided match those with the IRS records.
Through our IRS TIN matching system and one of the largest verified EIN databases in the world, our clients can verify that both the provided entity name and the TIN not only match each other, but also match IRS records.
By ensuring the EIN and name combination provided is accurate and registered with the IRS, your team can spend valuable time focused on other aspects of the business relationship and due diligence process.
Our system is designed to provide results in a simple, easy-to-understand manner.
By presenting clients with a clear “yes” or “no” response, we eliminate the room for error of interpreting a series of complicated response codes and unnecessary information other services provide.
“Overall, it’s a good system. If I had to hone in on anything, though, it is its simplicity. That makes it so much easier to train everyone else.”
“They help us validate our new customers when they come onboard. They are fast, easy to work with and provide updates whenever there are any issues with the IRS. Would recommend!”
What are the different types of TINs?
Tax Identification Number, or TIN, comes in several different forms. One of the most common is the social security number assigned to individuals. An Employer Identification Number, or EIN, is typically assigned to an entity such as a business, trust or estate. An Individual Tax Identification Number is assigned to those individuals that cannot receive a social security number but may still have a U.S. tax obligation.
What are TINs used for?
TINs are used for various reasons such as credit applications, opening a bank account, and other due diligence purposes. They are also used as an identifier (hence the name) for tax purposes and are regularly submitted on IRS documents such as a W-9, 1099-MISC, 1099-patr, 1099-div or other information returns.
What happens when a business does not have accurate TIN information?
If the IRS discovers incorrect information, they will typically send a notification to the filer. It then becomes the responsibility of the filer to take action to correct the mistake or be subject to penalties and interest.
What is a CP2100 notice?
A CP2100 Notice is the method by which the IRS notifies a filer that information submitted to the IRS contains incorrect information. This notice provides the filer the details of what the IRS believes to be incorrect and the opportunity to remedy the filing.
What is A B-Notice?
If you are provided incorrect information on a 1099, a B-Notice can be submitted to the individual or entity that provided you incorrect information. In this notice, the person submitting incorrect information is informed of their need to provide corrected information or otherwise be subjected to a mandatory withholding on the payment they are to receive.
These notices become crucial should you need to defend yourself against an imposed penalty for incorrect or missing information on a tax filing.