Before an enterprise can legally issue payment to a contractor or supplier, it must collect valid tax documentation (IRS Form W-9 for US entities, Form W-8BEN / W-8BEN-E for foreign entities) and verify identity against global sanctions lists. Automating this onboarding funnel prevents backup withholding penalties and eliminates manual data entry.
1. Real-Time IRS TIN Matching System
Automated onboarding platforms interface with the IRS e-Services Taxpayer Identification Number (TIN) matching portal to verify that the vendor's Legal Name and Employer Identification Number (EIN) or Social Security Number (SSN) match official IRS records within seconds.
