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 …
Understanding your e-filing delivery options
The way you decide to utilize an E-Filing system will depend on your industry, type of department, and the size of your company. Even if specific tax forms must be mailed, there are still options that will help to reduce your global footprint and rely less on a paper-only system and its potential issues. Aside from saving on time and resources, E-Filing can also include services such as TIN verification and correction filing. With E-Filing, you’ll also be less at risk for penalties from the IRS. Find out more about 1099 filing penalties here. eFile360 supports 1099, 1098, W-2, and Affordable Care Act forms. Depending on the filing needs of your department and company, you can choose the relevant add-on services to fulfill your needs. If you file with eFile360, you can choose from the following services: Mailing and E-filing E-Delivery Outsourcing TIN Checking Corrections Filing Combined Federal and State Filing Correction Filing Need a correction on a form from this year or the last three years? Don’t sweat it. eFile360 provides complete correction filing, whether you need it now or in the future. This service is offered for the same price as an original form filing. TIN Checking With our TIN Checking service, you’ll be helping yourself in preventing any penalties, tax withholdings, or B-Notices. Verifying the correct Tax ID of a recipient is crucial to submitting tax forms without issue. As an add-on service, you’ll simply select the option for TIN Checking when you submit your forms. Prior to filing your forms, we check the tax IDs to verify that they match the correct ID and name. If there are any issues, we send the files back to you for additional verification. Once the IDs and names match, the forms are e-filed. This simple clarification can save loads of time on verification and eliminate the possibility of withholdings or other issues. E-Delivery Since the IRS requires that recipients receive either electronic or …
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