During this holiday season, in addition to being on the lookout for that perfect gift, also be on the lookout for your annual letter from T.L. Baker & Co., LLP requesting 1099 and W-2 information and updates for the 2018 tax year.
You may get excited for letters with Santa, but no one wants a letter from the IRS. Common errors that create these notices are mismatches between employee’s names and SS numbers and/or vendor’s names and EIN numbers.
A common acronym you may see is TIN. A TIN is a tax identification number, for an individual this is their SS number and a business will have an EIN number. The IRS has a verification service that allows them to determine these mismatches which will prompt a notice to the taxpayer or business. So avoid this common pitfall and double check the information you provide so you don’t end up on that dreaded ‘naughty’ list.