Presentation on theme: "1 Coming Soon To A Computer Near You !!! The IRS TIN MATCHING PROGRAM An E-services Electronic Pre – Filing Initiative (Interactive and Bulk Applications)"— Presentation transcript:
1 Coming Soon To A Computer Near You !!! The IRS TIN MATCHING PROGRAM An E-services Electronic Pre – Filing Initiative (Interactive and Bulk Applications)
2 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
3 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.
Anticipated Savings Due to Decrease in ‘B’ Notices Mailed FY 03FY04FY05FY06FY07FY08 Volume750,000 Total Cost of Letters (1) $315,000 Phase-In Rate (2) 0%10%20%30%40%50% Decrease in Supply Costs (3) 00$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. 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.
5 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
6 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.
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 delegate users within their assigned location on behalf of the firm and disable access. May assign and disable user access within their assigned location on behalf of the firm. May perform TIN Matching on behalf of the firm. May only perform TIN Matching on behalf of the firm. May not enable or disable user access.
8 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 !
9 TIN Matching Application Close Window Close Window
10 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 e- Services 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
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 one- for-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
13 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.
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).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)
15 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.
16 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)
17 TIN Matching System Capabilities Interactive 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. Bulk Tin Matching It is anticipated the system will accept: 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.
18 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
19 Contact Information For more information regarding the TIN Matching Program, emails may be sent directly to the program analyst at: Patricia.Alford@irs.gov