TIN Management w/ Penalty Abatement Reporting

1099 Pro TIN Management is designed to help companies process and manage each step of the backup withholding requirements in order to establish reasonable cause for the abatement of penalties. This module pulls together all aspects of TIN compliance including CP2100's, CP2100A's, 972CG's, and bulk TIN matching to produce a complete TIN management solution that will maximize penalty abetment. The use of this module will allow the generation of detailed compliance reports that are invaluable during the IRS 972CG penalty abatement process. TIN management is broken into 6 stages that assist each step of the compliance process.
 

Automatic Importing and Manual Entry of Notices

Automatic importing of CP2100's, 972CG's, and bulk TIN files received from the IRS is fully supported. Once the magnetic tape has been converted, or more recently your CD has been decrypted, a few simple clicks will automatically load your data into TIN management. To ensure the accuracy and integrity of the data during the import process, TIN management has several layers of internal and external data verification. Externally, TIN management displays all available header information stored in the file ensuring proper file selection. Internally, the integrity of data is verified by ensuring that the calculated values match the ones stored within the file. In situations where a notice was received on paper, TIN management is designed to make the manual entering of notices as simple as possible. By designing the manual entry screen to match the paper notice closely, entry fields are easily recognized and in alignment with the notice. In addition, by incorporating built-in error checking and sequence number validation, errors during the manual entry process are brought to a minimum.
 

Match Processing and Request Type Determination

TIN management incorporates a sophisticated matching process that allows the user great flexibility during recipient matching and request type determination. There are two user inputs that influence the initial matching process, matching hierarchy and recipient matching criteria. The matching hierarchy gives the user the ability to either match against all departments with the same EIN or only selected departments within that EIN. This gives users the ability to limit notices to specific departments if they choose to do so. Recipient matching determines how the user wants to match existing recipients to the ones received on the notice. The matching criteria enables the user to match by any or all of the following; TIN, Account, Name, TIN Type, and Form Type. TIN Type and Form Type must be used along with one of the other criteria. The recipient matching process is flexible enough to enable the user to apply different matching criteria to individual records if they choose to do so. This gives the user the granularity necessary to match the majority of the recipients automatically. If the matching process is completely unable to locate a recipient then the user has the ability to create one based on the information received on the notice. During any point of this process the user is able to export all records and results to analyze their progress.


 

Request type determination is the second part of the matching process that assigns the type of information request a recipient should receive based on that individuals notice history. This process is fully automated and follows IRS regulation to determine what, if anything, the recipient should receive. For example, during a CP2100 process it will determine based on that recipients history whether they should receive a 1^st or 2^nd B-Notice, or nether if that recipient has already had 2 in 3 years or there was a recent TIN/Name correction made. The request type determination is fully automated but the user is given full control to override any request type that has been set.

 

Results Export/Import and Approving system

Once matching and request type determination has been completed the user is given the opportunity to further research all results. Functionality is provided to export all of the results to an Excel spreadsheet. This provides the user with a clear view of all records so that they can be analyzed. For example, the export could be separated by accounts belonging to specific departments and then sent to each one for their analysis. A major advantage is that changes to both the request type and department can be made directly on the Excel spreadsheet and then imported back into TIN management. This gives the user complete control and flexibility in overriding any of the results of the auto match process if they choose to do so.

TIN management uses an approval method to ensure that each record has been given the appropriate attention. Once the user is satisfied with the results of the auto match process and their own research they can simply approve the records. All records that have a recipient matched and a request type selected are approved at the click of a button. This turns the records into 'live' information requests and sets them up as a batch ready for printing. If for some reason a mistake is found after records are approved, functionality is provided to un-approve records that have not yet been closed (e.g. a W-9 was received).

 

Information Request Printing

 The print manager has been designed to easily print and reprint batches of information requests that have been approved. To make reprinting batches easier, when printing a batch of requests the user has the option of only printing request that are still in an open status (e.g. W-9 has not been received). An innovative feature of our print manager is that all information requests are printed with a unique barcode in the top right of the page. This unique barcode can be used for easy processing of returned requests as scanning it will instantly bring up its associated record. When users process thousands or even tens of thousands of information requests, bar-coding saves significant amounts of time.

 

Managing Information Requests

Once an information request has been issued (approved) it will be visible in the information request manager as 'Open/Pending'. The request manger is the place where information requests are closed once corrected information has been received back from the recipients. When a corrected request is received the user may scan the bar-code to automatically pull up its associated record or use the request ID number to locate it in the system. Once the record has been retrieved the user is given the opportunity to make any changes to the record and then 'Close' the request. By closing the request the user is telling TIN management that the corrected information has been received and the recipient should no longer be on backup with holding. An additional feature of the request manager is the ability to attach any type of document to a request. A common example is that a user may attach a scanned W-9 for easy access in the future. Attaching documents is a fast and convenient way of storing information about a recipient as there is no limit to the number of documents that can be attached to each request.
 

The manager allows the user great flexibility in searching for requests using any preset or custom query they choose. For example, a user can search for all requests that are 'Open/Pending' and are passed there backup withholding start date. This will list only requests that have fallen into backup withholding. Using the request managers reporting features the user can generate a report based on their search and in this example would generate a backup withholding report (All recipients that should be on backup withholding).

 

Penalty / 972CG Abatement Reporting

Penalty abatement reporting is an integrated part of TIN management as it pulls information from all parts of the 1099 Pro Client/Server solution to generate detailed abatement reports. The abatement report assembles a detailed history of all transactions involving the recipient including; original forms issued, corrections issued, bulk TIN matching sessions, IRS notices received, information requests sent, and responses. If the user took advantage of document attachment then a majority of the scanned supporting information can easily be included with the report. A complete well documented history including supporting documents, will greatly increases the percentage of penalty abatement.

See related topic CP2100, 972CG, W-9's & B Notices Explained.