What is a TIN Check?
When onboarding a new vendor, a TIN Check is an important component of ensuring compliance. It verifies that either a Social Security Number (SSN) or an Employer Identification Number (EIN) is valid and matches a person’s or company’s name in the IRS Database. A mismatch occurs when the IRS cannot verify a Name with a corresponding TIN number.
Why is it Important?
A TIN check is crucial for maintaining tax compliance and mitigating financial risks. By verifying the accuracy of Taxpayer Identification Numbers (TINs), businesses can prevent costly penalties and errors in tax reporting. Additionally, TIN checks help to identify potential fraudulent activities and protect against identity theft. Accurate TIN information is essential for generating correct tax forms, such as W-9s and 1099s, ensuring smooth tax filings and avoiding IRS scrutiny.
ICG’s Solution
ICG’s Vendor Onboarding solution includes a 3rd party punch-out to verify a supplier’s SSN or EIN is valid in the IRS database and ensure potential suppliers are not on government watch lists. The onboarding solution also has many other features that help you verify compliance from your vendors.
If you would like to learn more about TIN Check and the robust capabilities of ICG’s cloud-based Vendor Onboarding Portal contact us today!
