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 B-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.
Note: TIN Matching is currently only available for 1099 forms. TIN Matching is not consistent with W-2 or 1095 filing results.
Greatland TIN Matching Service
Greatland's automated TIN matching service 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 recipient 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 the IRS will consider a penalty waiver if the payer used TIN matching and received a positive match response.
- Provides email notifications when a 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 recipient 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 recipient 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.