Other Payer FAQs

What are the types of responses from the IRS for TIN Matching?

Wingspan utilizes the IRS Taxpayer Identification Number (TIN) Matching Program to validate 1099 contractor TIN and name combinations with the IRS records prior to submitting 1099s.

The TIN Matching Program and Wingspan provides three potential states for each TIN and name combination submitted: pending, match, and mismatch.

1. Pending: This state indicates that the TIN and name combination is under review. The IRS is in the process of validating the submitted information against its records. This is a temporary state, and the status will eventually change to either "match" or "mismatch."

2. Match: A "match" status means that the TIN and name combination submitted matches the IRS records. This indicates that the individual or entity is in good standing with the IRS, and the information can be used for filing purposes.

3. Mismatch: A "mismatch" status occurs when the TIN and name combination submitted does not match the IRS records. This could be due to various reasons such as typos, transposed numbers, unreported name changes due to marriage or divorce, or the TIN not being currently issued. A mismatch requires further action to correct the information before filing to avoid potential penalties.

The TIN Matching Program is a proactive measure to ensure the accuracy of the TIN and name combinations before filing information returns. It helps to reduce errors and the risk of penalties associated with incorrect information.

Is Wingspan listed on the contractor's Form 1099-NEC?

No, Wingspan is not included on Form 1099-NEC. The payer listed is the company's legal business name.

What happens if a contractor does not create a Wingspan account?

If a contractor doesn't sign up for Wingspan, and you have their W-9 information on file, their 1099 will be delivered to the address on file. If the contractor requests a correction, they will need to sign up to Wingspan to do so.

If you do not have their W-9 information, the contractor will need to sign up for Wingspan and provide their digital W-9 information. If they do not provide this information, payments may be withheld and they may face penalties or legal liability.

Is there a risk of legal and financial penalties for not filing Form 1099-NEC for a contractor who is required to receive one?

If you pay a contractor more than $600 in a year, you are typically required to file Form 1099-NEC to report those payments to the IRS. Without the contractor's W-9, you won't have the necessary information to accurately complete the 1099-NEC.

Failure to comply with IRS rules for reporting payments to contractors can lead to penalties and fines. Please consult with a tax professional or legal advisor to understand your obligations and ensure compliance.