Don't Delay if TIN is not Validatated!

Internal Revenue Service Document Shows Business Entity Info

Verify the the IRS has your information listed correctly, and that it matches other documentation. If you are able to find IRS Form CP575, the information will be the same unless you updated it at some point.

Incorrect TIN and business entity info can create a nightmare for your company. As of January 1, 2013, your bank or credit card processing company may be required to hold back twenty eight percent of the revenue coming from your credit card terminal until they get the notice that you are compliant with IRS Section 6050W which dictates that your information on file with your credit card processing company, ISO, or acquirer matches up with whatever the IRS has in its database. If there was a transcription or database error and your company name is listed differently, or if the IRS has an old TIN number, which can happen in businesses that get transferred, acquired, merged, or sold, then you are going to get an unpleasant shock.

Verification saves money.

Most ISOs, direct processing companies, acquiring banks, and even third parties have gone out of their way to verify your TIN information through a W9 form (or W8 for foreign entities) because they may be subject to fines and additional paperwork if you are out of compliance on your paperwork. If it is determined that you are not compliant, they may be forced to withhold money until you get back in the good graces of the IRS and regulatory bodies, and you won't get this money back until the next tax year. If you go out of business because the backup withholding caused you to go bankrupt, a factoring company may be able to buy this as a receivable account, but you really don't want to test this theory.

Take Action Today!

Assuming that you haven't obtained your form already, you can request it from the IRS by phone. They do not make it available as an online document in order to prevent fraudsters from getting important taxpayer information. This is one document you want to keep on file so when you apply for any kind of processing or merchant service you can be assured that you are copying your data from the source that is going to punish you the most if it is wrong.