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1099s - Online TIN Matching Tool

Posted by Keith Huggett on Thu, Jan 2, 2014 @ 10:01 AM

This Online Tax Tool May Save You Headaches Down the Line

tax tools, TIN matchingAuthor: Keith Huggett

If you have paid an independent contractor more than $600 for services during 2013, you need to send out a 1099-MISC form by January 31, 2014.  That same 1099-MISC form will need to be filed with the IRS by February 28, 2014.  If you are filing electronically the date is extended until March 31, 2014.  In order to fill out this form, you need to have specific information about your independent contractor, such as the business name, tax id number, and business address.  This information is easily obtained by requesting that the contractor fill out a W-9 form for you. Now that you have this information you have the ability to check the information against what the IRS has by using their Taxpayer Idendtification Number Online Matching tool before sending out your 1099s.

In order to use this tool, you need to register to use the IRS e-services, select a username, password and PIN. Then you can register to use TIN Matching from the suite of e-service products available. The TIN matching services allow “authorized payers” the opportunity to match 1099 payee information against IRS records prior to filing information returns.

An authorized payer is one who has filed forms 1099-B, 1099-DIV, 1099-INT, 1099-MISC, 1099-OID or 1099-PATR with the IRS in at least one of the two past tax years.

Interactive TIN Matching will accept up to 25 payee TIN/Name combinations on-screen while Bulk TIN Matching will allow up to 100,000 payee TIN/Name combinations to be matched via a text file submission.  This service is free of charge at this time.  

When you submit your TIN/Name combinations you will get one of the following NUMERICAL results:


While this step is certainly not required, it may make things easier for you when it comes time to send out those 1099-MISC forms.  If you know ahead of time that the information you have is correct, there will be no worries come April 15th.  Should there be any erroneous information found, you now have time to obtain the correct information from your independent contractors so that no red flags are raised when your taxes are filed.

Should you have any questions regarding 1099s, your taxes, or filing requirements, the highly trained specialists at The Tax Office, Inc. are here to help you.  Contact us now.

 

 

Topics: Keith Huggett, tax forms, IRS forms