Did you know that businesses who file 1099-MISC forms with incorrect Tax ID Numbers (TIN) can be fined up to $100 each month, for each incorrect TIN filed?
If a business mismatches names and TINs on 10 forms due to a spreadsheet error, for example, that will mean $1000 in penalties each month after August 1st. For businesses filing more than a handful of 1099-MISC forms, mismatched or missing TINs can present a real liability.
IRS Mismatched TIN Penalties
|Tier||New Penalty||Old Penalty||New Maximum|
|Tier 1 30 days||$30 per form||$15 per form||$250,000|
|Tier 2 60 days||$60 per form||$30 per form||$500,000|
|Tier 3 August||$100 per form||$50 per form||$1,500,000|
|Intentional Disregard to file||$250 per form||$100 per form||No Limit|
The Solution: Bulk TIN Matching
Our IRS approved BULK TIN/Name Matching program prevents these errors. This service verifies that the Social Security Number (SSN) or Employer Identification Number (EIN) is correct, and matches the filee or company name.
For one flat rate of $74, businesses can cross-check up to 10,000 names through our service and get results back within 1-2 days or less.
How it works
After receiving your job order, we then receive your spreadsheet from our secure server, create a job name and format your spreadsheet or 1099-MISC Express source file to IRS specifications for Bulk TIN Matching. This includes filtering out invalid characters, removing duplicate Tax ID numbers, etc. We then upload this data to the IRS, receive the IRS response, download and receive the IRS’ results, convert these into a user friendly text file you can understand, which includes IRS codes and additional detailed explanations to make corrections easier. Finally, we upload the results to our secure server and notify you by email that your file is ready.
Turn-around time is usually 6 hours or less, and during peak season never exceeds 48 hours.
We perform all labor for a flat fee of $74.00 per file, up to 10,000 names per file. Contact us for details and special pricing.