Tax Identity Management: Best Practices Before Season | Product

The most common factor affecting 1099 reporting accuracy stems from discrepancies between recipient names and their corresponding Tax Identification Numbers (TINs). Ensuring the accuracy of Name/TIN combinations before filing is a crucial aspect of the tax information reporting process. 

Failure to address these mismatches often bears the highest penalty risk for organizations. These penalties can reach up to $310 per form, with larger organizations facing an annual maximum penalty of more than $3.7 million.

Beyond the financial penalties, the fallout from reporting errors extends to the operational realm, necessitating additional time and resources for payee outreach and corrections, taking away from other business-critical goals.

This session will cover all you need to know about tax identity management, including:

• An overview of tax identity management
• How to proactively validate TIN information
• Comprehend ways to identify fraudulent individuals before issuing payments
• Understand best practices for handling IRS “B” and “P” notices