The Certification tab on 1099I allows you to track whether the taxpayer's 1099 Reporting Information has been verified with the IRS using the Advantage IRS TIN/Name Match Extract process. Certification fields indicate when and how the information was verified. The Certification tab also allows you to indicate whether the 1099 Reporting Information entry is ready to be selected by the IRS TIN/Name Match Extract process. The process extracts Taxpayer ID information so that it can be matched to IRS records using the IRS TIN/Name Match e-Service. This job selects all eligible records from 1099I where the Taxpayer ID and TIN Type are populated and the Send to IRS and 1099 or 1042-S Reportable flags are checked. The IRS TIN/Name Match Update process updates the records based on the file received back from the IRS. The IRS Match Status field captures the match status received from the IRS as part of the IRS TIN/Name Match e-Service.
Selecting records for TIN/Name Matching
If a record should be selected by the IRS TIN/Name Match process, select the Send to IRS flag on 1099I. Note that only records that are 1099 or 1042-S Reportable will be selected. When ready to do so, run the IRS TIN/Name Match Extract batch process. This process selects records that have not been submitted to the IRS. If the record is selected by the batch, the Send to IRS flag will be unchecked. Note that any error produced from 1099I will be issued when the record is being saved. The error may not be related to the batch process. When this occurs, the error must be resolved in the source whether it be on 1099I, VCUST, or other. The IRS TIN/Name Matching process will produce an output file with a file name IRS TIN Name Match yyyymmdd.txt. If a record needs to be sent to the IRS more than once for any reason, manually select the Send to IRS flag on the 1099I record.
File Submission to IRS
An authorized user will manually retrieve the bulk file, log in to their IRS e-service account, and submit the bulk file for processing. The IRS provides a Tracking Number for each bulk file submitted. This information can be used to follow up with the IRS regarding any technical issues with the file returned from the TIN/Name Match process. The Tracking Number can also be used for future documentation in the unlikely event of a penalty or other issue arising from an incorrect TIN/Name combination on a submitted 1099 form.
Receiving IRS TIN/Name Match Status File
The IRS will process the bulk file submitted and then return the original file and include a result indicator (that is, the match status) as an additional column in the file. An email notification is sent to the user that submitted the bulk file to let them know that the file has been processed. An authorized user will manually load the IRS file to the Advantage Export/Import directory for further processing.
Updating the IRS Match Status in Advantage
The IRS TIN/Name Match Update batch job in Advantage reads the returned IRS file and updates the following fields on 1099I: IRS Match Status, IRS Match Status Date, and IRS Tracking Number (IRS Tracking Number is updated only if selected on batch parameter). Any records that do not have a status ‘0 – Name/TIN Combination matches IRS records’ will be written to an exception report for additional research. Records where a matching entry is not found on 1099I will also be written to the exception report. 1099I will always reflect the most recent IRS Tracking Number in the event that the TIN/Name combination was submitted to the IRS on more than one bulk file.
Although unlikely, it is possible that the Name on 1099I is changed between the time an entry is extracted to send to the IRS and the status is updated based on the information returned from the IRS. If a difference is found, the Name update will still be applied on 1099I but an entry will be written to the exception report.
Sites may choose to manually maintain the IRS Match Status information instead of using the IRS TIN/Name Match process. The IRS Match Status information can be maintained directly on the 1099I table, VCC or VCM transactions.