The most common cause of 1099 reporting errors is mismatches between recipient names with Tax Identification Numbers (TINs) also known as TIN matching. Errors can lead to incorrect filing penalties, trigger withholding obligations for your organization and can result in expensive IRS penalties, amounting to $280 per form, with a cap of about $3.4 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 extremely costly as well. Luckily much of this can be avoided with a Sovos automated check during the onboarding process.
Learn from the experts at Sovos about the important topic of TIN Matching and the business implications behind avoiding these processes. Topics covered on this webinar included:
- TIN Matching Overview and Importance
- Backup Withholding “B” Notices
- TIN Matching Demo
- Benefits of TIN Matching