TIN Validation

TIN Validation

Capital Processing Network is the leader in cooperating with the IRS and your business to assure compliance on IRS Section 6050W.

We deliver reporting your company needs to comply with new IRS codes. Don’t risk using other processors who don’t have this capability.

What is Section 6050W?

IRS Section 6050W was enacted by the Housing Assistance Tax Act of 2008 as a mandatory IRS reporting procedure for all payment settlement organizations. The new legislation went into effect January 1st, 2011 and was created by the IRS in an effort to assist with validation of merchant tax returns. At the onset of 2012 and each year thereafter, merchants will receive form 1099-K reporting their total gross sales of credit card transactions for the previous year.

How does 6050W affect me?

Section 6050W of the IRS Code requires reporting of all payment card and third party network transactions. Reporting entities will be required to file an annual information return with the IRS and provide all merchants with form 1099-K, reporting monthly and annual gross sales. To comply with this new law, it is critical that we have your correct taxpayer ID number (TIN) and business tax filing name. For additional details regarding this reporting and the validation of your tax information, contact us at 1.877.456.9747.

What happens if I do not provide the requested information?

As an IRS requirement, effective 2013, merchants who have not provided their correct and matching Tax Identification Number (TIN) will incur a 28% withholding tax, from their gross credit card sales, for the previous year (2011). The 28% withholding tax will then be submitted to the IRS. In addition, additional penalties may be levied by the IRS for merchants who fail to update their TIN and tax filing name with Capital Processing Network . It is the merchant’s sole responsibility to furnish all required information to us to avoid backup withholding tax and/or penalties.

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Helpful information

Capital Processing Network encourages all of its merchants to contact a tax professional for further clarification on Section 6050W and its impact as pertains to you and your business. Additional information can be found by visiting the following link: http://www.irs.gov/pub/irs-pdf/p2108a.pdf

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TIN Validation Questions?

As a client of ours, you have access to a team of knowledgeable representatives who understand your business and will be ready to respond to your specific needs.

Contact if you have any questions about TIN Validation.