TIN Matching is More Important than Ever.
Matching Tax ID Numbers (TINs) with their correct counterpart names is more important than ever. Chances are that you will be filing a 1099 Form sooner or later, and it is more urgent than ever to make certain there are no errors on your 1099 Tax Filing Form. Why? Because mistakes in matching TINs with names are easier to make than you may realize, and the penalties for making those mistakes are steep, and could be getting steeper.
The IRS is backlogged in its communique with American taxpayers, so you could file your 1099, think all of your TIN matching was correct, see a full year go by, and then suddenly be slammed with Tier 3 Tax penalties for inputting mismatched Tax ID Numbers. In fact, for just five small errors, you could face penalties of more than $1,300. If your company is sizeable and you make just 100 errors in TIN matching, that fine could be a whopping $27,000.00! This penalty would hit you out of the blue, more than a year after having filed that 1099 Form, and due to easily-avoidable mistakes with entering incorrect digits in Tax Identification Numbers.
The Most Common Causes for TIN Matching Errors
Mistakes with Tax ID Numbers is common. It is highly possible to be provided with the wrong TIN for a number of reasons. Vendors and clients might either knowingly or mistakenly provide you with inaccurate TINs, or you could simply be missing a few Tax ID Numbers for a variety of reasons. You won’t know you’ve been given an incorrect Tax ID Number until it is too late, however, and there is no guarantee that the TIN you try to look up on a vendor or employee is accurate. It’s also possible for human error to find its ways into your fingertips, and to simply enter the wrong TIN as you fill out your 1099 Tax Form. Let’s face it - typos happen. No matter what the cause, incorrect TINs are all to commonly entered on tax forms by even the most careful professionals.
The Solution to Avoiding TIN Matching Mistakes on Your 1099
Those dreadful IRS notices, which are unexpectedly received long after having filed taxes, are preventable. Nobody wants to pay hundreds of dollars for one simple mistake in one number on one tax form. And if there is more than one mistake made in entering TINs, then multiply those hundreds of penalty dollars! This is a waste of precious money, and it’s remarkably easy to avoid this situation altogether.
A simple solution that will save money, time, and stress is to use REALSearch.com's real-time TIN and EIN Matching tool. By gaining access to the more than 24,000,000 TINs and EINs in our database, you can swifty search and verify all the TINs and EINs you need to enter on your 1099 Tax Form.