
Original publisher: [Washington, D.C.] : U.S. General Accounting Office, [2003] OCLC Number: (OCoLC)54064446 Subject: Tax administration and procedure — United States — Evaluation. Excerpt: … some Forms 1099 MISC for tax years 2000 and 2001 with invalid vendor TINs. • Three other federal departments – Health and Human Services, Interior, and Justice – indicated that IRS’s TIN–matching program is used, but only by some of the agencies or bureaus within the respective departments. While officials from some federal departments said they were unaware of the TIN-matching program, others thought the program was currently unavailable. DOD officials stated that they rely on the CCR for validating vendor TINs and thus do not use the IRS TIN-matching program. A Department of the Interior official indicated that it is in the process of implementing use of the CCR by its bureaus and agencies as of October 2003 at the direction of OMB. Although backup withholding is required if vendors fail to provide a valid In General, Federal TIN to a federal payer, most federal agencies do not initiate backup Agencies Do Not Initiate withholding. From our survey of federal department policies and practices BackupWithholding as for obtaining vendor TINs and filing required Forms 1099 MISC we found Required the following. • Officials from only 2 of the 14 federal departments – Energy and Transportation – said that their agencies initiate backup withholding departmentwide. • Three other federal departments – Health and Human Services, Interior, and Justice – indicated that backup withholding is initiated only by some of the agencies or bureaus within the respective departments. The main reason cited by officials from several of the federal departments for not initiating backup withholding was the lack of a process in place within their respective financial management systems for accomplishing 11 backup withholding of vendor payments. Some department officials also indicated that they…

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