Want one less thing to worry about this tax-filing season? Take advantage of TIN matching to ensure accurate TIN/name combinations for payer and payee data. This is an important time- and money-saving service because incorrect TINs can result in a TIN/name mismatch which causes form rejection – and a potential $290 failure to file correct information return penalty per form filed. In the case of intentional disregard for the filing requirements, the penalty soars to no maximum. This type of mistake can end up in double penalties being charged if the form is filed with the IRS and sent to the recipient with the wrong information.
A Taxpayer Identification Number (TIN) is a unique number used by the IRS. It can be a Social Security Number (SSN) for individuals, an Individual Taxpayer Identification Number (ITIN) for individuals not eligible for a social security number, an Adoption Taxpayer Number (ATIN), or an Employee Identification Number (EIN) for businesses also known as a Federal Tax Identification Number (FEIN).
The IRS issues CP2100 and CP2100A notices twice a year. When the payee’s name and TIN on the information return doesn’t match IRS records, a notice is sent to the payer. The notice informs payers they may be responsible for satisfying backup withholding requirements, if they haven’t done so already.
When using efileACAforms, you can check TINs as part of the checkout process.
Live Chat