| Good Afternoon, Annual TIN Campaign As you may be aware, the Internal Revenue Service (IRS) requires the reporting of debit and credit card transactions for businesses on an annual basis using an IRS information form called a 1099-K. In order to make accurate filings with the IRS, a merchantâs Legal Business/Personal Name and Tax Identification Number (TIN) used for income tax filing must match with IRS records. These requirements are found in IRS Code Section 6050W. Consistent with the 1099-K Policy statement NAB will conduct one solicitation each year to merchants whose TIN information does not match what is on file with the IRS. For a complete list of your merchants who have a TIN/Name mismatch on file with us, or for answers to any questions, please contact your Reelationship Manager at 844-334-9625. You can also log in to the Sales Partner Portal to check the TIN status listed under the Merchant tab. For the 2021 solicitation, beginning in December, merchants will receive an email and physical annual TIN solicitation letter making them aware of a TIN mismatch that requires correction. The email will provide a means to download and mail or fax a completed form for processing. It will also include a link to DocuSign that can be used by the merchant to complete and submit a W-9 electronically. Please note: merchants who have been issued a âBâ Notice are not included in the TIN solicitation, and must follow the instructions of the âBâ Notice for TIN remediation. As a reminder, merchants have been receiving messages on their monthly processing statements regarding the importance of accurate taxpayer information. TIN status is viewable on Payments Hub > Business Settings > 1099K & tax section, and TIN Mismatch is also an alert on the EXP daily snapshot email. Corporate name changes & rewrites. If a Form W-9, SS-4 letter, or LTR 147C is received in response to a TIN solicitation, that provides a Merchant Business Name (Corporate Name) that is different from what was on the original application or currently on record, this may result in a corporate name change process that requires re-underwriting. To correct a corporate name, the merchant must follow the instructions on the Business Information Change form. If there is a change to both the merchantâs Business Name and federal Tax Identification Number (TIN), a new merchant application may be required. The tax document cannot be processed, and backup withholding (if applicable) cannot be removed until the new Name/TIN appears in our systems. Please note, 1099K Compliance does NOT manage corporate name changes or rewrites. Tax document remittance. It is important to remind your merchants that for security reasons, tax documents are never to be sent via unsecure email. Tax documents may be remitted via the following methods:Fax: 248.283.6243 DocuSign: TIN solicitations sent by email will include a link to DocuSign for the merchant to submit a tax document via secure email. Mail: 1099-K Compliance, 250 Stephenson Hwy, Troy, MI 48083IRS penalties. The Internal Revenue Service (IRS) assesses a penalty when a 1099-K is filed with an inaccurate combination of the merchantâs personal and/or business name and taxpayer identification number. A W-9 Form, IRS-issued SS-4 letter, or LTR 147C are the accepted documents that may be used as supporting evidence to defend the penalty assessment. The current penalty rate is $280 per inaccurate 1099-K up to a maximum of $3.5M. NAB makes every effort to mitigate the IRS penalty assessment but there is no guarantee that the IRS will reduce or waive penalties. Per the 1099-K Policy Statement, this penalty may be passed on to your merchant or passed on to you. Standard Service Times 1099-K inquiries and tax documents are processed in the order they are received, on a first-come, first-served basis. During periods of high-queue volume, longer service times may be experienced. There are no service-level agreements associated with 1099K@paymentshub.com unless the merchant is subject to backup withholding. The current response time for backup withholding responses is 30 calendar days. If the merchant requires a change to their corporate name or requires a rewrite of their merchant application, this may increase the processing time for the tax document. You can also check out our 1099-K Policy statement, 1099-K Policy Statement FAQ, and 1099-K Best Practices to help you better understand TIN mismatches, backup withholding, and the Standard Service Time for processing a tax document or related communications. Helpful Tips to Prevent Mismatches Avoid these other common causes for TIN mismatches:Sole Proprietors filing with a Social Security Number (SSN) may use an SSN as their TIN. All other business types must supply a valid Employer Identification Number (EIN). Do not deviate from what appears on the tax document. For example, do not substitute âAutoâ for âAutomotiveâ or âCorpâ for âCorporation.â Do not substitute â&â for the word âandâ unless that is how it appears on the tax document. Social Security Numbers and Employer Identification Numbers are always 9 digits in length. Thank You, PayProTec
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