tincorrect, taxes, w2, 1099, irs, TIN, EIN, employee verification, vendor verification

TINCorrect: Employee and Vendor Verification

In an effort to help employers accurately file their IRS information returns, we are proud to announce our latest product: TINCorrect.

What is TINCorrect?

TINCorrect allows you to verify SSNs (Social Security Numbers) or company EINs (Employer Identification Numbers) prior to submitting your tax forms to the IRS.  Submitting tax forms with the wrong TIN information can result in additional IRS scrutiny on your filing in addition to having to correct your filing, re-file your forms, and re-issue corrected employee copies.

With TINCorrect, you can make sure your TINs are correct before you file.

What is a TIN?

A TIN (Taxpayer Identification Number) can be either a Social Security Number  or an Employer Identification Number.  The IRS uses a TIN to verify the identity of each payee.

How does the TINCorrect process work?

For checking a handful of TINs at once, you can use our on-demand search to get verification results within seconds.

For larger batches, you can use our simple drag and drop file import. We will automatically remove any invalid TINs, and we can return the results of this search typically within a day.  (This may take longer during peak tax season.)

Why is this beneficial?

By catching TIN issues before you file, you give yourself the opportunity to fix these issues prior to filing where the IRS would take notice of these issues. This also gives you the opportunity to do a TIN solicitation to get the most up to date information from your payees to fix these issues and show that you’ve made a good faith effort to correct your invalid TIN information.

W-2 Penalties

If you fail to file a correct Form W-2 by the due date and cannot show reasonable cause, you may be subject to a penalty as provided under section 6721.

For Tax Year 2016, the fines are as followed:

  • $50 per form if correctly filed within 30 days of the due date; maximum penalty is $532,000 per year ($186,000 for small businesses, defined in Small businesses).
  • $100 per form if correctly filed more than 30 days after the due date but by August 1; maximum penalty is $1,596,500 per year ($532,000 for small businesses).
  • $260 per form if filed after August 1, do not file corrections, or do not file required Forms W-2; the maximum penalty is $3,193,000 per year ($1,064,000 for small businesses).

1099 Penalties

If you fail to file a correct information return by the due date and you cannot show reasonable cause, you may be subject to a penalty. The penalty applies if you fail to file timely, you fail to include all information required to be shown on a return, or you include incorrect information on a return. The penalty also applies if you file on paper when you were required to file electronically, you report an incorrect TIN or fail to report a TIN, or you fail to file paper forms that are machine readable.

For Tax Year 2016, the fines are as follows:

  • $50 per information return if correctly filed within 30 days; maximum penalty $532,000 per year ($186,000 for small businesses, defined below).
  • $100 per information return if correctly filed more than 30 days after the due date but by August 1; maximum penalty $1,596,500 per year ($532,000 for small businesses).
  • $260 per information return if filed after August 1 or you do not file required information returns; maximum penalty $3,193,000 per year ($1,064,000 for small businesses).

How do I begin?

Click here to sign up with TINCorrect today and begin your free trial.

Still have questions?  Contact us.

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