The IRS TIN Matching service is a valuable tool that every A/P manager should know about. This free-of-charge e-service allows ‘authorized payers’, defined by the IRS as one who has filed information returns with the IRS in at least one of the two past tax years, to match 1099 payee information against IRS records prior to filing information returns.
By integrating the TIN Matching program into your processes, you can reduce errors in validating TINs and decrease your backup withholding and penalty notices. In addition, it’s a control to aid in the prevention of fraudulent activity.
The IRS offers two methods to match: interactive TIN matching that will accept up to 25 TINs and Bulk TIN matching which accepts up to 100,000 TINs, submitted as a txt file, to be matched at one time.
The following link takes you to the IRS website and will get you started http://www.irs.gov/taxpros/article/0,,id=109646,00.html.
Before you get started with the IRS TIN Matching service, you may wish to review publication 1281 from the IRS that covers Backup Withholding for Missing and Incorrect Name/TIN(s). It contains frequently asked questions on the topic, how to handle missing and incorrect name/TIN combinations (and even provides flowcharts for further clarification), explains the IRS matching process, and more.
Here is the latest publication http://www.irs.gov/pub/irs-pdf/p1281.pdf
Karl Andersson has devoted his career to helping organizations improve their business processes. For 15 years, he has worked with multitudes of Fortune 500+ companies as the CEO of Technology Insight. Before this, he spent 10 years working in the audit and consulting sectors, which included large international projects in both Europe and Asia.
Karl brings a combination of industry expertise and real-world experience. The diversity of his clients has allowed him to understand a variety of industries, and the unique challenges that each of them face.