New Feature: IRS TIN API Integration for W-9 Forms

TAINA releases IRS TIN API Integration for W-9 Forms

TAINA now offers seamless integration with the IRS TIN API, empowering our clients with real-time TIN checks for W-9 forms. This feature provides direct access to the official IRS TIN matching service within the TAINA platform, delivering significant benefits for TAINA clients.

What is a Taxpayer Identification Number (TIN)?

A Taxpayer Identification Number (TIN) is a nine-digit identification number used by the Internal Revenue Service (IRS) in the administration of tax laws for a number of tax reporting purposes. A TIN is issued by the IRS and used when filing U.S. federal income tax return and other IRS tax forms.

A TIN number is also used by other entities like financial institutions as an identification number for opening a bank account.  A financial institution usually obtains the TIN of a business or individual during the onboarding process by requiring a W-9, a tax form for the Request for Taxpayer Identification Number and Certification.

Examples of types of TIN:

•  Social Security Number (SSN) [Supported]

•  Individual Taxpayer Identification Number (ITIN)

• Employer Identification Number (EIN)  [Supported]

• Adoption Taxpayer Identification Number (ATIN)

• Preparer Taxpayer Identification Number (PTIN)

What is IRS TIN Matching?

IRS TIN matching is when a business or payee verifies that the tax identification of a business or individual matches the IRS database. TIN matching is offered on the official IRS website as a free e-service. After registering to be an authorized payee, you can enter up to 25 names and TINs to get immediate verification response, or alternatively using the bulk TIN matching up to 100,000 names and TINs to get verification within 24 hours.

The TIN Types matched against the IRS records to confirm that a taxpayer is authentic, include the Social Security Number (SSN)  and Employer Identification Number (EIN). 

Benefits of TAINA IRS TIN API Integration for W-9 Forms

1. Improved Reporting Accuracy: Say goodbye to inaccuracies. Our clients can now validate Taxpayer Identification Numbers (TINs) instantly, ensuring precise reporting. This is especially critical for Forms 1099, where incorrect TINs can lead to compliance issues, B-Notices from the IRS, and potential audits or penalties.

2. Streamlined B-Notice Processing: By leveraging the IRS TIN API, TAINA simplifies the handling of B-Notices. No more manual back-and-forth—just efficient resolution. Avoid the risk associated with incorrect TINs on Forms 1099.

3. Risk Mitigation and Business Continuity: The opportunity to streamline and enhance TIN matching by automating it for client onboarding and TIN validation is a game-changer. Previously, manual and time-consuming processes introduced risk. Now, a process that was once slow and largely manual becomes seamless and part of business-as-usual. It’s also a crucial step in bringing tax compliance in line with industry and regulatory best practices.

How does TAINA’s IRS TIN API Integration feature work?

End Customer Experience:

• When end customers enter W-9 forms online, TINs are automatically sent to the IRS portal for validation. 
• A form can be submitted even without a TIN having a ‘Valid’ status.
•  Reason why is various scenarios (such as IRS API service outages) could result in validation statuses other than ‘Valid’. To ensure the Customer Experience is not interrupted a form will be able to submit if no response comes in on time

Back Office Tax Operative Experience:

Tax Operatives reviewing W-9 forms in the Back Office can:

• TIN Validation Status: Easily track the TIN validation status from the moment the customer submits the form.
• Manual TIN Checks: If TIN validity is unknown (due to IRS service outages or recent form uploads), Tax Operatives can initiate a manual ‘Check’ by clicking the relevant button.

If you are interested in enabling this new feature in your TAINA instance,please reach out to us. 

If you would like to see how the TAINA FATCA, CRS and QI Compliance Platform can add value to your business, request a demo today.