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IRS TIN Matching FAQs

TIN Matching - Frequently Asked Questions

What is TIN Matching?

TIN matching is a process where the Tax Identification Number (TIN) provided by a vendor or contractor is verified against the records of the Internal Revenue Service (IRS) to ensure it is correct and matches the name provided.

Why is TIN matching important for accounts payable professionals?

TIN matching helps prevent errors on tax forms, reduces the risk of penalties for incorrect information, and ensures compliance with IRS requirements. It also helps prevent fraudulent activities and identity theft.

What types of TINs are used for TIN matching?

The types of TINs used for TIN matching include:

  • Social Security Numbers (SSNs) for individuals
  • Employer Identification Numbers (EINs) for businesses and other entities
  • Individual Taxpayer Identification Numbers (ITINs) for non-residents and others who cannot obtain an SSN

When should accounts payable departments perform TIN matching?

TIN matching should be performed:

  • When onboarding new vendors or contractors
  • Before filing information returns such as Forms 1099
  • Periodically, to ensure ongoing compliance and accuracy of records

How does the TIN matching process work?

The TIN matching process involves:

  • Collecting the TIN and name from the vendor or contractor
  • Submitting this information to the IRS for verification through the IRS TIN Matching Program
  • Receiving a response indicating whether the TIN and name combination matches IRS records

What are the consequences of not matching TINs correctly?

Incorrect TINs can result in:

  • Penalties from the IRS for filing incorrect information returns
  • Backup withholding requirements, where a percentage of the payment must be withheld and remitted to the IRS
  • Delays in processing payments to vendors or contractors

What is the IRS TIN Matching Program?

The IRS TIN Matching Program is an online service provided by the IRS that allows authorized payers to verify the TIN and name combination submitted by vendors or contractors against IRS records.

Who is eligible to use the IRS TIN Matching Program?

The IRS TIN Matching Program is available to authorized payers who are required to file information returns (Forms 1099) with the IRS. Accounts payable departments that handle such filings are typically eligible.

How do accounts payable professionals enroll in the IRS TIN Matching Program?

To enroll in the IRS TIN Matching Program, accounts payable professionals must:

  • Register with the IRS e-Services
  • Apply for access to the TIN Matching Program
  • Complete the required authentication and authorization processes

What are the best practices for ensuring accurate TIN matching?

Best practices for accurate TIN matching include:

  • Collecting W-9 forms from all vendors and contractors to obtain correct TIN and name information
  • Verifying the TIN and name combination before making any payments
  • Keeping records of TIN matching results for audit and compliance purposes
  • Regularly updating vendor information and performing periodic TIN matches

What should be done if a TIN mismatch is identified?

If a TIN mismatch is identified:

  • Contact the vendor or contractor to verify and correct the information provided
  • Request a new W-9 form if necessary
  • Re-submit the corrected information for TIN matching
  • Implement backup withholding if the correct TIN cannot be obtained

Can automated systems help with TIN matching?

Yes, automated systems like VendorInfo can significantly streamline the TIN matching process by:

  • Integrating with the IRS TIN Matching Program for real-time verification
  • Reducing manual data entry errors
  • Maintaining an up-to-date vendor database
  • Generating reports for compliance and audit purposes
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