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What is the penalty for a payer who furnishes an incorrect name/TIN to IRS?

IRC Section 6721 provides a payer may be subject to a penalty for failure to file a complete and accurate information return, including a failure to include the correct payee TIN. The penalty is $50 per return, with a maximum penalty of $250,000 per year ($100,000 for small businesses). The penalty for intentional disregard is $100 per return, with no maximum penalty.

For additional information see Publication 2108a, Online TIN Matching Program.