TIN Matching

Tax ID Verification Service

It is essential to ensure that you are reporting the correct Tax ID/name combination to the IRS when submitting 1099 forms. To prevent the IRS penalties for incorrect reporting and to reduce the cost associated with issuing B-Notices and withholding federal tax payments, we highly recommended that you verify the accuracy of the recipient’s Tax ID.

The IRS has sent over 65,000 proposed penalty notices in the last year alone. The IRS penalty for a mismatched Tax ID/name combination could be as high as $280.00 per mismatch. You can avoid this penalty by using our TIN Matching service.

Our TIN Matching service allows you to verify the TIN and name before submitting the information to the IRS. Internal Revenue Code 6724 provides that any penalties under Section 6721 may be waived if the filer shows the failure to file a correct TIN on an information return was due to reasonable cause and not willful neglect. Filers may prove due diligence and receive a waiver from proposed penalties if they use the TIN matching program.

Here are the penalties imposed by the IRS for a mismatched Tax ID:

Tier 1 (30 Days) $50 per form $565,000.00
Tier 2 (Over 30 Days, before August 1) $110 per form $1,696,000.00
Tier 3 (After August 1) $280 per form $3,392,000.00
Intentional Disregard $550 per form No Limit

How it works

Our TIN matching service works seamlessly with our e-filing system. Just choose the option for TIN Matching when submitting your forms. If you have selected the TIN matching service, then our system will automatically send out the TIN matching request before e-filing your forms. If the TIN match result detects a discrepancy, we inform you so that you can verify the information with your recipient and correct the information. We resend your information to verify. If it is a match, we e-file your forms.

Matching Indicator

The IRS displays one of the following “Match Indicator” codes next to the TIN and name combination:

0 = TIN and Name combination match IRS records.
1 = TIN was missing, or TIN was not 9-digit numeric.
2 = TIN entered is not currently issued.
3 = TIN and Name combination do not match IRS records.
4 = Invalid TIN Matching request (i.e., contains letters or special characters)
5 = Duplicate TIN Matching request.
6 = TIN and Name combination match IRS SSN records.
7 = TIN and Name combination match IRS EIN records.
8 = TIN and Name combination match IRS SSN and EIN records.