No-match letters are also known as “Employer Correction Requests,” and they are sent whenever there is an issue with TIN during filing. TIN numbers are an employee’s social security number (SSN) or Employer Identification Number (EIN), information that is collected from the employee.
The SSN has begun sending no-match letters to businesses after a seven-year hiatus from doing so. This means that you’ll want to be extra cautious in assuring that you’re accurate on TIN matching when filing taxes this year.
Simple errors can lead to much larger problems.
By carefully taking information from employees through W-2s during the onboarding process, this will help to smoothly file forms. It’s simple information, but sometimes human error causes slip-ups. Unfortunately, when it comes to the IRS, those simple flubs can bring about much bigger issues.
When no-match letters are sent or you are alerted to TIN issues, this doesn’t always mean that you or an employee has done something incorrectly. But since the SSA reports information to government agencies, filing 1099 forms with the correct independent contractor data is crucial to fluidly file. Read more about the Reasonable Cause Regulations and Requirements for missing TINs from the IRS.
How to prevent delays and potential penalties
A service that can alert you to any TIN issues can also prevent serious problems related to government agencies like ICE. Throughout the tax filing process, small matters can lead to much bigger problems
Benefits of e-filing delivery services
Preventing errors related to TIN verification is easy when using an e-filing service. Reducing the risk of notifications from the IRS should be strongly considered when it comes to tax filing season. Luckily, there are simple methods for ensuring TIN accuracy when filing taxes.
When filing electronically with eFile360, the TIN Checking box is simply marked, and a TIN check automatically runs when taxes are filed through the eFile360 service.
If TIN Checking shows errors, you’ll be notified in order to confirm information with the form recipient. Onboarding employees can be the moment where incorrect identification enters the system. Once TIN matches up, the forms can then be filed.
You’ll also want to keep in mind that deadlines have changed this year. This isn’t an extension that is commonly given and not believed likely to happen again in the future, so you probably don’t want to sit back and relax. If you’re wondering what types of forms you need and need help choosing, take a look at our supported forms.
Feel free to chat with us if you’re interested in learning how eFile360 can help support your business.