Are you taking advantage of Bulk TIN/NAME Matching Services to Avoid IRS Penalties?
The IRS Bulk TIN/Name Matching program has been a spectacular success.
Many companies are using this service to avoid receiving notice from the IRS that
the payer may be responsible for backup withholding and/or certain penalties.
The Problem: When you file Forms 1099-Misc, DIV, INT, B, OID or PATR, the
IRS computer checks each Social Security Number (or Tax ID Number) to see if it
matches the Name, according to the IRS database. Each mismatch can result in a
$50 penalty up to a maximum of $250,000 per company? Even if you file on paper,
the IRS checks for mismatches.
Did you know that most 1099 files have a mismatch rate of over 20%? You are more
likely to have mismatches with new SSNs and names. Even the best of us make
accidental typing errors or use the wrong name on the W-9. The IRS treats each
mismatch as a missing or incorrect SSN, and assumes the worst (as if someone is
cheating, i. e. not reporting that income).
The Solution: Now, with the Bulk TIN Matching program, you can find and
correct these errors before filing to the IRS. As the saying goes "An ounce of
prevention is worth a pound of cure". The Bulk TIN Matching Program through the IRS is free of charge to anyone.
It takes the
IRS one or two months to certify your application, and at least one person must
also submit its tax returns to the IRS for a security clearance.
As an alternative,
1099Express can provide this service for $50 per file submitted to the IRS. Each
file can contain up to 100,000 records, all for only $50.00. Whether you purchase our
software or not, you can still take advantage of this service to correct any errors prior to
filing to the IRS.
We will show you how to send your files to our Service Bureau with the utmost
security. We also format the data to IRS specifications, perform the uploads,
downloads, and send you a formatted report via a secure connection.
For more information, see our Service Bureau.
Because your goal is to reduce B-Notices and associated penalties from the IRS, please call our
main office at 361 884-1500 or call our Service Bureau
Manager, Barbara McMahon at 214-534-1210, today to discuss the process for Bulk TIN Matching. It’s simple and easy!
Call today!
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