FAQ

Collecting W-9 forms electronically allows businesses to request, complete, sign, and store W-9 documentation securely without PDFs or manual data entry. When combined with automated reminders and IRS TIN matching validation, electronic W-9 workflows reduce mismatches, speed onboarding, and prevent costly compliance issues.

A TIN/name mismatch happens when the taxpayer name and EIN/SSN combination submitted does not match IRS records, often due to DBA names, missing suffixes, typos, or outdated W-9 information. These mismatches are one of the leading causes of CP2100 notices, B-Notices, and IRS filing penalties.

Backup withholding is an IRS requirement where businesses must withhold a portion of vendor payments when a payee fails to provide a valid TIN or when the IRS reports incorrect taxpayer information. It is commonly triggered by missing W-9 forms, TIN/name mismatches, and unresolved B-Notice compliance issues.

A W-9 is used to collect taxpayer information from U.S. vendors and contractors for 1099 reporting, while W-8 forms are used to certify foreign status and support withholding or treaty compliance for non-U.S. payees. Collecting the wrong form can lead to reporting errors, withholding issues, and increased IRS compliance risk.

B-Notices are IRS-required vendor notifications triggered by name/TIN mismatches reported after 1099 filing. The best way to avoid them is to validate vendor information early using IRS TIN matching, collect W-9s upfront, and proactively clean vendor master data before filing season.

IRS Notice 972CG is a penalty notice issued when the IRS determines that information returns such as 1099s were filed late or submitted with missing or incorrect taxpayer information. These penalties are often assessed per form, making vendor data accuracy and proactive TIN validation critical for compliance.

A CP2100 Notice is issued by the IRS when a business files 1099 forms containing vendor name and TIN combinations that do not match IRS records. It often triggers B-Notice outreach requirements and can lead to backup withholding obligations if not resolved properly.

IRS TIN matching works by submitting a vendor’s legal name and TIN for validation and receiving a response indicating whether the combination matches IRS records. This process helps businesses prevent tax filing errors, reduce B-Notices, and improve vendor onboarding accuracy.

IRS TIN Matching is a compliance process that verifies a vendor’s legal name and TIN against IRS records to reduce reporting errors and prevent IRS notices. It helps businesses avoid penalties, streamline vendor onboarding, and maintain clean, audit-ready tax records.