If you’ve been informed you have any mismatched employee/vendor names and taxpayer ID numbers, it’s time to take a second look at your follow-up procedures.

For any case of a “mismatch” IRS requires companies to start backup withholding on any future payments. But in practice, it’s common for companies to start withholding late — either because they’re trying to correct the problem or they simply overlook the task at first.

That could be a costly mistake, since word in D.C. is that IRS will soon be doing spot checks of companies that have gotten mismatch notices.

Tags: Audits, Backup withholding, IRS, Tax compliance, Tax identifcation numbers