Identifying “type two” errors in reporting is one of those compliance steps that we frequently take for granted as common knowledge. However, are you sure your staff can identify a type two error?

A type two error is one whereby the original return was filed with one or more of the following errors:

(a) No payee TIN (SSN, EIN, ITIN, QI-EIN)
(b) Incorrect payee TIN
(c) Incorrect payee name
(d) Wrong type of return indicator

See page twenty-one of this year’s version of Publication 1220 for more.