The global legal and regulatory authorities now place an increasing onus on all types of organizations to carry out Know Your Customer (KYC) checks prior to establishing any business or financial relationship.
Thus the need to verify new business or customer contacts has never been more important. Prior to establishing a business relationship you need to establish whether your prospective partner is a company or individual and is providing you with full and accurate information. More importantly you need to confirm that you are not becoming involved in a money laundering scheme or being associated with organized criminal activity.
IRS is able to confirm identities, ownership of companies, and verify through a number of sources that information provided is a true representation of the Individual or Corporation in question.