SSN and Name Validation
In September 2013, thousands of colleges and universities across the country received IRS Notice 972CG proposing penalties for missing or incorrect taxpayer identification numbers (TINs) on Form 1098-T.
IRS Tax Notice 972CG proposed penalties of $100 for each tax document sent to the IRS with a missing or incorrect TIN. The maximum penalty can reach $1,500,000 per year or $500,000 for organizations with average annual gross
receipts of $5 million or less.
Unfortunately, unlike other information return filers such as banks or employers who use IRS-approved TIN matching services to verify TINs reported on tax documents, colleges and universities are not permitted to use the Social Security.
Administration's TIN matching service to validate TINs reported on their 1098-T tax forms. This means that schools are responsible for manually validating each student's TIN implementing both time-consuming and cumbersome W-9 collection processes.
With Heartland ECSI's SSN & Name Validation Service, you can eliminate future IRS penalties while reducing your school's administrative costs associated with collecting W-9 Forms for SSN validation purposes. Our SSN & Name Validation Service is a simple, cost-effective solution that gives you instant peace of mind while reducing your school's financial tax penalty liabilities.
Critical "4-Point Validation" Process
- Social Security Number Issuance Validation
- Social Security Administration Match Validation
- Deathmaster Information Verification
- Alternate Identity Verification
Benefits for Your Institution
- Ensures compliance with IRS rules regarding collection of TINs
- Eliminates costly penalties caused by missing or incorrect TINs
- Eliminates time-consuming manual processes for validating TINs