Many e-filing services provide TIN checking as an additional service to e-filing and paper filing. But what is the service? And is it necessary? Many of our customers ask these questions when they use eFile360 to file their 1099s and related forms for the first time. Most customers want to be informed before they complete their order while others are suspicious of add-ons in general. So we wanted to clear the air: TIN checking isn’t necessary to file your 1099s, but this service can save you a lot of headaches. What is a TIN? A TIN is a Taxpayer Identification Number. It is also called a “95-number” or “tax-ID” number. A TIN is an umbrella term that means the following: Social Security Number (SSN) Employer Identification Number (EIN) Individual Taxpayer Identification Number (ITIN) Adoption Taxpayer Identification Number (ATIN) Preparer Tax Identification Number (PTIN) Business owners typically use their EIN to file business taxes and their SSN to file their personal taxes, but this may differ based on your unique situation. When it comes to filing 1099s, 1098s, ACA forms, and W-2s, business owners need to know the TIN for each employee, freelancer, and independent contractor that works for them. Tip: While you may only need to file a form if you pay that employee or contractor $600 within a calendar year, it’s always best to document their TIN before they start working for you. This way, you know that you have their TIN on file way before tax season. What is the TIN Error Reconciliation Process? When it comes to tax reporting, it’s vital that all of the information you file is accurate – including the TINs of your employees and contractors. This is where the TIN error reconciliation process comes into play. This process is three-fold: Check your records Use a TIN checking service, which efile360 offers File Form 1095-C when you find TIN errors The first portion of this process involves you double-checking …
7 benefits of using an online & authorized IRS e-file provider
What sets authorized IRS e-file providers apart from other businesses and individuals who say they can e-file for you? We'll discuss this and the benefits of using an authorized IRS e-file provider whose services are available online only. An "authorized IRS e-file provider" is a business or individual that is authorized by the IRS to electronically file taxpayer returns. This provider can either be a local business, online business (like eFile360), or a business selling an e-file software, but for the focus of this article, we’ll discuss the benefits specific to online businesses. According to the IRS, a business is recognized as an "Authorized IRS e-file Provider" when it is “accepted to participate in the electronic filing (IRS e-file) program.” Since the IRS maintains the highest standards for e-file providers, this designation is important and shows that the business promises to “protect the integrity and security of the electronic filing system” as well as the security of the taxpayer’s information. Here are 7 benefits of choosing to use an online and authorized IRS e-file provider: Eliminate mistakes Complete a variety of forms quickly Last-minute filing Customer service assistance Repurpose last year’s data No need to purchase paper forms in bulk No administrative and IT costs Eliminate mistakes An authorized IRS e-file provider will help you eliminate mistakes in your Information Return forms before you submit them using the bulk upload option and the TIN Check add-on. The bulk upload option allows you to upload a large amount of data at once using a formatted Excel spreadsheet. If you use eFile360, we provide you with a unique Excel spreadsheet template specific to our bulk upload option in our e-filing system. You can copy the data from your accounting software into this template, which eliminates manual mistakes. Another way to eliminate mistakes on your forms is to utilize the TIN Check add-on service. …
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