Why Tax ID Verification for IRS Purposes Is Necessary
Mismatch Costs and Penalties Taxpayer ID Numbers (TIN) must be accurate on your IRS information returns. This part of 1099 compliance often gets overlooked. But the penalties can be up to $260 per occurrence of mismatch or error. Multiple errors quickly add up to a very high number. Issuing B-notices and backup withholding adds even more burden.
Penalties for Failure to Correct Your organization can be flagged for incorrect reporting. Maximum penalties for failing to correct a mismatched TIN are very high. For example: if you failing to correct after 30 days of discovering the mistake, the penalty can be up to $565,000. In the case of errors that go uncorrected for more than 30 days, the maximum penalty is nearly $1.7 million before Aug. 1 and almost $3.4 million after Aug. 1. If the IRS determines that there was intentional disregard, there is no limit to the penalties that may be incurred.
Expert guidance to prevent penalties and correct errors With decades of experience, our team can help you avoid penalties and other costs. Our TIN matching service ensures that you won’t have to worry about possible mistakes. But it is just one part of our comprehensive reporting package. Mistakes happen. When they do, we help you correct them quickly and painlessly. We offer easy post-filing corrections at no extra cost.