Transcript IRS TIN MATCHING PROGRAM

Coming Soon To A Computer Near You
!!!
The IRS TIN MATCHING PROGRAM
An E-services Electronic
Pre – Filing Initiative
(Interactive and Bulk Applications)
1
What Is A TIN ?
• A TIN, or Taxpayer Identification Number, can
be any of the following:
• SSN – Social Security Number
• EIN – Employer Identification Number
• ITIN – Individual Taxpayer identification
Number
• ATIN- Adoption Taxpayer Identification
Number
2
What Are The Goals of TIN Matching?
• To further the IRS Mission statement of reducing taxpayer burden.
• To provide the payer community with an opportunity to “perfect”
Information Returns prior to filing annual reports with the IRS,
thereby, reducing the TIN validation error rate.
• To decrease the volume of mismatched income and penalty notices
(92CG) issued.
• To significantly reduce the number of (‘B’) Backup Withholding
notices produced by the IRS.
3
Anticipated Savings Due to Decrease in ‘B’ Notices
Mailed
FY 03
FY04
FY05
FY06
FY07
FY08
Volume
750,000
750,000
750,000
750,000
750,000
750,000
Total Cost
of Letters
(1)
$315,000
$315,000
$315,000
$315,000
$315,000
$315,000
Phase-In
Rate (2)
0%
10%
20%
30%
40%
50%
Decrease in
Supply
Costs (3)
0
0
$19,301
$19,301
$19,301
$19,301
Total
Benefits
0
$31,500
$82,301
$113,801
$145,301
$176,801
Source: DRAFT e-Services Business Case Update Version 2. – April, 2003
(1)
Cost of letters includes costs for telephone calls, supplies and postage associated with ‘B’ Notice issuance.Cost of
mailing one letter is $0.42.
(2)
Phase-in rate is 10% of total ‘B’ Notice volumes per fiscal year, to a maximum of 80% in FY2011 and thereafter.
(3)
Cost of magnetic tape supplies associated with the current Federal TIN Matching program run from MCC. Cost
decrease will not be reflected until after FY04 when the Bulk TIN Matching program is functional.
(4)
Total benefit to the organization is projected to be 1.8 million dollars by FY13 .
Who Is Eligible To Apply For The TM
Program?
Authorized payers must have filed information returns with the IRS in one of the two prior tax
years in order to complete the application process. Authorized payers are those whose EIN can be
found in the IRS’ PAF (Payer Authorization File)
Payers such as corporations, financial institutions, federal agencies, etc., who file any one of the six
Information Reporting documents transmitting backup withholding type income as follows:
•
•
•
•
•
•
1099 B - Income from Brokers & Barter Exchanges
1099 INT – Interest Income
1099 DIV – Dividend Income
1099 MISC – Miscellaneous Income
1099 OID - Original Issue Document
1099 PATR – Taxable Distribution from Cooperatives
5
Support Systems Provided
• An on- Line tutorial will be available to assist
users with :
•
The registration process
•
The application process
•
The TIN Matching process
• Toll-free numbers will also be provided to speak
with e-Services customer assistors.
6
TIN Matching Defined User
Profiles
Principal

Responsible Official Authorized Agent


Delegated Users

An individual who owns at
least 5 percent of the firm
and is responsible for
completing the application
process. Also applies to a
corporate officer, (VP.,
Sec., Treasurer, etc.), who
has the authority to legally
bind the firm.
An individual who holds a
supervisory position within
the firm.
An individual or
organization contracted to
transmit specific IRP
documents to the IRS on
behalf of the firm.
An individual who will utilize
the TIN Matching session
options on behalf of the firm.
Must apply on behalf of the
firm for TIN Matching
access.
Must designate responsible
officials. May also
designate all other defined
roles.
May perform TIN
Matching for their firm.
May update the application,
assign authorized agent and
delegated user roles and
perform TIN Matching.
May assign and disable user
access within their assigned
location on behalf of the
firm.
May only perform TIN
Matching on behalf of the
firm.
May delegate users within
their assigned location on
behalf of the firm and disable
access.
May perform TIN Matching
on behalf of the firm.
May not enable or disable user
access.
Registration and Application
• All users must register on the e-Services website in order to utilize any
e-Services products.
• All users will receive a confirmation code, via U.S.Mail, indicating the
acceptance of the completed registration form.
• Confirmation of the registration, via the IRS Registered User Portal,
must be completed by users within 28 days of on-line registration.
• The assignment of roles for responsible officials, authorized agents and
delegated users may be completed during the application process.
• All actions are accomplished quickly and easily on-line !
8
TIN Matching Application
• Close Window
•
• Close Window
9
Flow of Communication Between
Inter/intranet and IRS Databases
•
•
•
•
•
•
A TIN/Name match request will be input by the registered user and validated by the eServices web application .
Upon successful validation, the request will be received by the TIN application on the
People Soft interactive web application.
The match request is then sent from People Soft to the enterprise data server.
Each Tin/Name combination is checked against the NAP-DM1(National Account Profile
Data Master) first for the match request. The system will try to match the name controls
from the TIN request line to the name controls of retrieved records. (Currently 1-100
records).
If the TIN and name exists, it will retrieve the record. If there is no name control match
in NAP DM-1, the system will then go to EIN N/C (Employer Identification Number
Name Control).
Results are returned to the user.
Source: PRIME – ESVC- Technical Model View 050502
10
The Interactive TIN Matching Process
• Interactive TIN Matching requests are submitted on-line
using the following information:
• TIN type – EIN, SSN or Unknown is selected via drop
down menu.
• TIN – Must be 9 numerals. Cannot be all 0’s or all 9’s.
Also, the string of 123456789 is not a valid input.
• Name - A maximum of 40 characters and a minimum of 2
characters will be accepted.
• The system will validate all input data and return a onefor-one response using Match Indicator codes zero through
5 ( 0 – 5 ).
The Interactive TIN Matching Process
• Up to 25 TIN/name combinations can be input as one
request.
Sample input:
Input : SSN 000-20-0000 Anyname Wildo
EIN 00-0001110 Corporate Building
Sample Response:
SSN 000-20-0000 Anyname Wildo 3
•
EIN 00-0001110 Corporate Building 0
Potential Responses to Interactive TIN
Matching Inquiries
• A numerical response will be returned along with the data input by the
requestor as follows:
• 0 – Name/TIN combination matches IRS records
• 1 – Missing TIN or TIN not 9 digit numeric
• 2 – TIN not currently issued
• 3 – Name/TIN combination does not match IRS records
• 4 – Invalid request (i.e., contains alphas, special characters)
• 5 – Duplicate request
• FOR SECURITY REASONS, THE IRS CANNOT RETURN THE
CORRECT SSN IN THE EVENT A NO - MATCH IS
INDICATED.
13
Bulk TIN Matching Requests
•
.TXT file data formats are as follows:
Tin Type;TIN;Name;Account Number
TIN Types are (1=EIN, 2=SSN, 3=Unknown). Account Number (Optional field for user
records only)
Bulk TIN Matching Response
Bulk TIN Matching responses will be processed within 24
hours. Each .txt file submitted will be assigned a tracking
number to associate with the response sent to the user’s
secure mailbox.
15
What’s Next ???
• The Interactive TIN Matching program is
tentatively scheduled to be released in the
Summer of 2003.
• The Bulk TIN Matching program is
tentatively scheduled to be released in the
Fall of 2003. (Release 1.2)
16
TIN Matching System Capabilities
•
•
Interactive Tin Matching
It is anticipated the system will
accept:
•
•
Bulk Tin Matching
It is anticipated the system will
accept:
•
Up to 101,250 requests per
hour.
Up to 506,250 requests per
day
Up to 5,062,500 requests per
month
Up to 20,250,000 requests per
year.
•
Up to 3,848 requests per
hour.
Up to 19,238 requests per day
Up to 192,375 requests per
month
Up to 769,000 requests per
year.
•
•
•
•
•
•
17
TIN Matching Business Owners
• TIN Matching Business Owner
William F. Conlon, Director
SBSE Reporting Compliance
• TIN Matching Business Lead
Shirley A. Greene, Program Manager
SBSE Reporting Compliance
18
Contact Information
• For more information regarding the TIN
Matching Program, emails may be sent
directly to the program analyst at:
[email protected]
19