TaxBandits TIN Matching Service: Validate TINs Effortlessly and Avoid Penalties.

It usually takes 24-48 hours to receive the TIN matching status after activation. However, the process may take longer depending on the number of recipients.

Verifying the TIN before submitting your 1099/W-2 forms is essential to ensure accurate reporting to the IRS. Here’s why:

• Avoid Penalties: If you submit incorrect TINs, the IRS may impose penalties for incorrect information. Verifying the TIN in advance helps prevent
  costly fines.
• Prevent Rejections: Incorrect TINs can cause the IRS to reject the forms, delaying your filing process and potentially affecting your compliance status.

Under IRC Section 6721, payers must submit accurate information returns with correct payee TINs. Penalties for incorrect TINs depend on when
corrections are made:

• $60 per return if corrected within 30 days.
• Up to $310 per return if corrected after August 1.

For intentional disregard, penalties can reach up to $630 per return.

If there is a mismatch between the provided TIN and the name in IRS records, the IRS may reject your form. To fix TIN errors, navigate to the dashboard → ‘Submitted’ tab → click ‘Fix Error’ next to the applicable recipient in the TIN Matching column where the TIN failed. Click here to learn more about how to fix TIN validation errors on 1099 forms.

If your return has failed TIN validation, corrections must be made within 96 hours or by the scheduled submission date, whichever is later. If not corrected, the forms will be transmitted with the incorrect TIN, which may lead to rejection and potential penalties.