{"id":2158,"date":"2022-01-10T11:30:00","date_gmt":"2022-01-10T11:30:00","guid":{"rendered":"http:\/\/3.229.211.58\/?p=2158"},"modified":"2024-09-03T09:19:37","modified_gmt":"2024-09-03T09:19:37","slug":"tremendous-time-savings-with-compliancely-real-time-tin-match-automation","status":"publish","type":"post","link":"https:\/\/compliancely.com\/blog\/tremendous-time-savings-with-compliancely-real-time-tin-match-automation\/","title":{"rendered":"Tremendous Time Savings with Compliancely Real-Time TIN Match Automation"},"content":{"rendered":"\t\t
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When your business receives CP2100 and CP2100A notices from the IRS with a $260 penalty for every incorrect TIN you have reported for a tax year, you don\u2019t take that easily.<\/p>\n

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This is because businesses report hundreds and maybe even thousands of TINs in a year and the multiplied sum of $260 does not look pretty when it\u2019s going out of your savings.<\/p>\n

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As semi-tragic as this may be, businesses encounter this scenario more often than you may think.<\/p>\n

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Thousands of businesses around the country file and report 1099 forms with taxpayer identification numbers. Be it vendors, employees, or foreign nationals. When you work with someone and compensate them with the minimum reportable amount as payment, you\u2019re required to report the transaction along with the legal and tax information of the payee.<\/p>\n

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This is established.<\/p>\n

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What goes beyond this simple reporting practice is the countless hours of diligence and KYC processes put into action to ensure that the profile that\u2019s being onboarded (be it a freelancer, contractor, or vendor) is compliant with the federal agencies. And by federal agencies, we mean the IRS (and occasionally social security administration).<\/p>\n

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Reporting a TIN is a mere consequence of countless hours of work, manual searches, and investigations, put into action, to ensure that the information being reported is accurate and true.<\/p>\n

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Can you imagine a life where you have to sit and manually check the TIN and legal name of every vendor or profile that\u2019s been onboarded throughout the history of your business?<\/p>\n

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You will need a team of identity \u2018validators\u2019 just for TIN matching<\/a>.<\/p>\n

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And imagine this level of intricate work in practice as the IRS deadline approaches you within 2-3 weeks.<\/p>\n

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Sounds chaotic, right?<\/p>\n

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Enterprise industries feel this way too.<\/p>\n

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In fact, enterprise economies are so overwhelmed during the filing season<\/a> that they\u2019re now switching to automated tax compliance solutions, such as Compliancely, to combat timeline-sensitive operations.<\/p>\n

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But before we get to that, let us take you through a few things as follows.<\/p>\n

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What is Real-Time TIN Matching?<\/strong><\/h3>\n\n\n\n

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TIN Matching is a simple concept of validating the taxpayer identification number and the legal name of the taxpayer against the most recent, latest records of the IRS.<\/p>\n

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If the inquired information matches the IRS records, it\u2019s a TIN \u2018Match\u2019.<\/p>\n

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Why Do Businesses Need It?<\/strong><\/h3>\n\n\n\n

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If you report an incorrect TIN, the IRS will assess you with TIN discrepancy penalties, where each incorrect TIN will cost you $260 in penalties + interest.<\/p>\n

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For example, if you file 125 1099-NEC forms with vendor TINs and in the unfortunate event of you incorrectly reporting all 125 TINs in the 1099 forms, then the IRS will initially send a B-notice to notify you of the errors in reporting. If unaddressed for the prescribed period, the IRS will proceed to assess you with IN discrepancy penalties.<\/p>\n

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In such a case, you will approximately owe 125 incorrect TINs x $260 penalty per incorrect TIN = $32,500.00 in penalties + interest (according to this example).<\/p>\n

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However, you can prevent these IRS penalties with a simple protocol called TIN Matching.\u00a0Businesses are recommended to utilize TIN Matching before reporting and filing their IRS forms.<\/p>\n

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Nevertheless, TIN Matching<\/a> comes in handy for correcting your incorrect or inaccurate TIN reports as well.<\/p>\n

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What is TIN Match Automation?<\/strong><\/h3>\n\n\n\n

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When the volume of TINs you need to report is too high and your business has very little time to allocate a specialist for TIN verification, Automated TIN Matching solutions are what you need.<\/p>\n

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TIN Match Automation is a process of automating your TIN Match requests through a pre-defined set of protocols to get accurate results within a few minutes.<\/p>\n

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It\u2019s not as complex as it may sound.<\/p>\n

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With Compliancely<\/a>, for example, you can just import your bulk TIN and legal name data to our secure platform. Compliancely will read the data and ask for your consent prior to searching the TINs in accordance with the IRS records.<\/p>\n

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In 30 seconds or less, you will receive a comprehensive report of all the TIN\/name combinations that match the IRS records and the ones that don\u2019t, enabling you to follow up with vendors that provided inadequate data.<\/p>\n

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How Does Compliancely’s Real-Time TIN Match Automation Help Businesses?<\/strong><\/h3>\n\n\n\n

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Here\u2019s why enterprises need a robust, automated TIN Match system like Compliancely.<\/p>\n

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