TIN matching is a service implemented by the IRS that allows a 1099 filer to check the TIN (Taxpayer Identification Number) and a specific name to ensure that there is a match for it in the IRS database. This process helps filers avoid IRS penalties and notices for missing TINs or incorrect Name/TIN combinations.
The IRS created TIN matching to increase compliance and to reduce the costs associated with sending notices and the additional processing.
Greatland TIN Matching Service
Greatland's automated TIN matching service, available in Yearli Performance and Yearli Desktop, integrates with the IRS database for hassle-free and accurate validation. Greatland's TIN matching service is the best in the industry. We interpret the results for you, delivering an easy-to-understand TIN matching report in one to three business days.
- Available immediately; no enrollment process required
- Matches the payee name and TIN with IRS records.
- Decreases CP2100/CP2100A notices and penalty notices.
- Prohibits invalid requests, increasing efficiency by reducing the number of mismatches to be addressed.
- Reduces the time and effort required to deal with backup withholding and penalty notices.
- Reduces the likelihood of paying penalties because IRS will consider a penalty waiver if the payer used TIN matching and received a positive match response.
- Provides Email notifications when TIN matching request is submitted to the IRS and when the TIN matching report is ready.
Penalties can be costly and B-Notices take time. Avoid both by using the Greatland TIN matching service.
Penalties are imposed for each of the following infractions related to information returns:
- Filed with missing/incorrect information
- Filed untimely
- Filed with an incorrect TIN
- Failure to report a recipient's TIN
- Filed in an incorrect format
- Any combination of the above
For returns filed before January 1, 2016, Internal Revenue Code (IRC) section 6721 imposes a:
- $30 per information return if you correctly file within 30 days of the due date
- $60 per information return if you correctly file more than 30 days after the due date but by August 1
- $100 per information return if you file after August 1 or you do not file required information returns
Maximum penalties to payers for failure to file correct information returns, including furnishing an incorrect name/TIN to IRS = $1.5 million/year ($500,000 for small businesses); $250/return for intentional disregard with no maximum penalty.
For returns filed beginning January 1, 2016, Internal Revenue Code (IRC) section 6721 imposes a:
- $50 per information return if you correctly file within 30 days of the due date
- $100 per information return if you correctly file more than 30 days after the due date but by August 1
- $250 per information return if you file after August 1 or you do not file required information returns
Maximum penalties to payers for failure to file correct information returns, including furnishing an incorrect name/TIN to IRS = $3 million/year ($1 million for small businesses); $500/return for intentional disregard with no maximum penalty.
If the IRS sends you a CP2100 or CP2100A Notice indicating an incorrect payee TIN/name combination, you are required to send the "B" Notice within 15 days from the date you received it, or the date of the CP2100/2100A, whichever is later. See Publication 1281 for details.
- CP2100 or CP2100A: "Notice of Possible Payee TIN Discrepancy" - Notice sent from IRS to the payer listing name/TIN combinations on information returns that do not match IRS records.
- B Notice: "Backup Withholding Notice" - Notice sent from payer to payee requesting correct name/TIN. There are two B notices - a First B Notice and a Second B Notice. The text on the two notices is different.
- Notice 972CG: "Proposed Penalty Notice" - Notice sent from IRS to the payer notifying the payer of potential penalties. Payers have 45 days to respond to abate proposed penalties.
- CP15/215: "Balance Due Notice" - A bill from IRS to the payer informing the payer of the amount of penalties due.