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For CPAs, IRS compliance is always a top priority. You consistently work to ensure taxpayer identification number (TIN) accuracy, but tight timelines can limit the extent of additional verification. Many CPAs face the dilemma of whether to check all their TINs and risk filing late, or to glance over them and submit to ensure on-time filing.
It’s a difficult position to be in, but filing an incorrect TIN can be costly in many ways.
Notices and Penalties
When the IRS identifies an incorrect TIN, they’ll send you a B Notice. Because the IRS sends these notices out twice a year, typically in October and the following April, it may take months to notice an error.
B Notices can appear in two different ways:
- CP2100 Notice: For filers with 50 or more information returns with errors.
- CP2100A Notice: For filers with fewer than 50 returns with errors.
If ignored or unresolved, a second B notice or a P Notice, the proposed civil penalty, will be sent.
The imposed penalty depends on several factors, including whether and when corrections were made. Penalties range from $60 to $680 per incorrect return, with no maximum penalty for intentionally disregarding them.
While one incorrect return may be corrected swiftly, the more there are, the more difficult it becomes to fix them quickly. Not only can this lead to high costs, but the time and effort required can push aside other important responsibilities.
Reputation and Trust
As a CPA, your reputation with your clients and in the community are everything. If your clients can’t trust your accuracy, you may lose them.
When a TIN error occurs, the responsibility may extend to your client. If the B Notice matches the information on record, your client must begin backup withholding for the payee and provide you with accurate information. This disrupts their workflow and adds sudden pressure.
Even if the incorrect information was provided directly by your client, they still rely on you to ensure accuracy. Instances like these sow distrust and may damage your reputation going forward.
TIN Matching with TaxBandits
No one wants to deal with the disruption, financial costs, and reputational damage that TIN errors can cause, so let TaxBandits support your filing success with TIN Matching.
TIN Matching is the most thorough and accurate method to ensure TIN accuracy. Whether you file individually or in bulk, we check that your payee’s TIN matches the IRS database. If the TIN doesn’t match, we will notify you typically within 24-48 hours.
Accuracy Beyond TINs
While TIN Matching is the best way to ensure TIN accuracy, TaxBandits supports the accuracy of your entire filing process.
In addition to TIN Matching, we provide USPS address verification and built-in error checking against the IRS rules. We will flag any forms with errors, provide a clear breakdown, and offer guidance on adjustments.
If an error still slips past submission, you can file a correction or retransmission at no additional cost.
The Bandit Commitment
We know how important it is to be efficient and accurate in tax reporting, and we’re committed to supporting you in every part of the process.
The Bandit Commitment is our promise to deliver the right filing outcome every time. Before, during, and after submission, we prioritize compliance and simplify the filing process so you can file with confidence each and every time. And whenever you need assistance, we’ll support you with guided resources, live support agents, and the BanditAI chatbot.
With this commitment, TaxBandits is always dedicated to providing lasting peace of mind and a successful tax year for you and your clients.
Conclusion
TIN mismatches can be financially and reputationally costly. By protecting your filings with TaxBandits’ TIN Matching, built-in error checks, and our promise of complete filing compliance through the Bandit Commitment, you file with confidence knowing accuracy and compliance are always prioritized. That confidence allows you to focus on delivering the best possible outcomes for your clients, every time.
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