The most common cause of 1099 reporting errors is mismatches between recipient names with Tax Identification Numbers (TINs). Errors can lead to incorrect filing penalties, trigger withholding obligations for your organization and can result in expensive IRS penalties, amounting to $290 per form, with a cap of about $3.5 million for large businesses.
Penalties for inaccurate data are not the only issue for organizations as the additional time and expense of payee outreach and corrections are costly as well. Luckily, much of this can be avoided with a Sovos automated check during the onboarding process.
In part one of this two-webinar series, learn from the experts at Sovos about the importance of being proactive with TIN Matching during the onboarding process and the business implications behind avoiding it. Topics will include:
- TIN Matching Overview and Importance
- TIN Matching Demo
- Benefits of TIN Matching
