IRS TIN matching is one of the most important elements of the supplier validation procedure. TIN or Taxpayer Identification Number matching is a free service offered through the IRS services. It is one of the best practices and it is very important to match the TIN offered on the W-9 of the supplier with the TIN available on the file with the Internal Revenue Service while setting up the supplier in one’s master file. IRS TIN matching program was brought into action for the taxpayers of Form 1099 earnings. However, it was subject to backup withholding provisions of section 3406 (a) (1) (A) and (B) of IRC or Internal revenue Code. Before filing an information return, the program participant might check the TIN that is provided by the payee against the TIN combination or name contained in IRS database. This database is maintained for the TIN program.
Benefits of TIN Matching Program
Companies submitting IRS 1099 forms to Internal Revenue Service can highly benefit from the use of the TIN number search program. This program is basically a completely free of cost service that can be accessed by an authorized individual. On the part of the IRS, the individual is not informed about the right TIN but he or she is informed that the TIN and the Name combination submitted is incorrect. The main purpose of this program is helping individuals avoid any kind of mismatches. One of the major benefits of this program is that it gives individuals the flexibility of preparing forms 1099 in the best way possible. This helps individuals in saving penalty potentials by responding on time.
Areas Covered in the TIN Program
The areas covered in the program include:
· · Basic know-how of IRS e-services
· TIN matching
· · The process of applying for the use of IRS e-services.
· · The right time for using TIN Matching