Are You Using the IRS TIN Matching Program?
If not you should. An accounts payable professional recently wrote asking about a feature that causes some confusion. It was the request for what looked like personal information. Here’s my response.
Here’s the TIN Matching story. You are correct when you state that it looks like you have to give personal information. This has caused big problems for a number of companies - and some have not been able to participate because of it. Personally I think that is unfortunate. The IRS wants personal information from the individual (who should be an officer) of the company to ensure they have an appropriate person. That’s why they ask for the social security number and the last AGI from the tax return. That is something only the individual would know. This information is only asked for one time - at registration time. It is so the IRS can verify the identity of the individual - nothing more. The IRS already has this information so it is not like you are telling them something they don’t know. Once the individual registers the company, the day-to-day administration can be turned over to a more appropriate person - usually someone in AP, but occasionally in another part of accounting.
The officer who registers the company can do so in the privacy of his or her office with no one watching. Once the registration is completed no one else will be able to see that information. If you cannot get an officer to do this, the responsibility can be delegated to say the AP manager. It should be done in writing.
This is a fine program and you should be commended for trying to get your company to use it. One other thing to be aware of. The person who registers the company must use his or her name exactly as the IRS has it. Things like middle initials, Jr. Esq, etc can throw it off.
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Tags: accounts payable, IRS, IRS TIN Matching, TIN Matching, TIN Matching Program