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Top 5 TIN Verification Tools and How to Choose Best One

Nearly every U.S. tax returns require payers to fill out their TIN (tax identification number) in the form. This unique number is used by the businesses and IRS to ensure accurate tax reporting and compliance.

IRS maintains its own record of TIN and name database. So, when a payee files 1099s/W-9 and payroll forms, the TIN details and legal name should match with the IRS records.

A wrong TIN information can levy penalties and a few more forms for correction. So, how do you correctly fill TIN if you have numerous tax returns or payroll forms?

Short answer: Use TIN verification tools to match TIN/legal name with the IRS database.

Read this blog as we talk about the best TIN verification tools that lets you verify TIN online for your returns.

What is TIN?

A TIN (taxpayer identification number) is a unique number that is assigned to businesses and individuals for reporting on tax returns, payroll forms and even at the time of account opening. There are various types of TIN number depending on whether the entity is individual, a business, employee, vendor or a freelancer.

Below, we’ve given the most common TIN types:

  • SSN (Social Security Number): A nine-digit number assigned by SSA to sole proprietors, single member LLCs and individuals.
  • EIN (Employer Identification Number): A nine-digit unique number assigned by IRS to businesses with employees or corporations.
  • ITIN (Individual Taxpayer Identification Number): This unique identifier number is used by certain nonresident and resident aliens who cannot get SSN.

Payers must collect the TIN numbers before filing a 1099 series, W-9 or W-8 series.

Why TIN Verification Matters for Payers?

TIN verification is a critical compliance step for payers to ensure accurate reporting and avoid IRS penalties. If a contractor’s TIN and name combination is invalid or mismatched, the IRS issues CP2100 or CP2100A “B-Notice” to the payers.

Thus, payers are required to withhold 24% tax on the future payments and submit a correct filing.

Incorrect or mismatched TIN can levy penalties up to $330 per form or $660 if it is an intentional disregard along with the manual rework costs.

An automated TIN verification tool bulk check the TINs, catch typos and frauds to avoid mismatch and safeguard cashflow.

How TIN Verification Tool Works?

A TIN verification tool matches the TIN and legal name with the IRS database. Here’s how a tool like Tax1099 works:

1 .Import: Upload a CSV file containing all the TINs and legal names or sync your accounting or ERP. The tool checks for duplication and normalizes the names and addresses in case of errors.

2. Match: TIN verification API checks the matched TIN details against source code and returns the status codes (0 = exact match, 1 = name mismatch, 2 = TIN not issued, etc.) The API match checks and bulk verify TIN in less than 24 hours.

3. Flag mismatch: Mismatched TIN gets flagged and failed records appear on dashboard. From failed records, payers request an updated W-9.

4. Archive: These tools archive your records and results which are 4 years older or more. These results are exportable to avoid CP2100 proof.

Top TIN Verification Tools

Let’s have a look at the top TIN verification tools and how they fare against each other:

1. Tax1099 Integrated TIN Matching Suite

Tax1099 offers an automated TIN matching system with instant lookup. You can choose a single TIN or a bulk TIN matching by importing the details from Excel/CSV, QuickBooks, Xero, NetSuite and even from REST API.

One of the best features of Tax1099 is that it eliminates the need to register employee and company phone for OTP. For bulk matching, it offers a TIN match template which you can download and upload by filling the data. Tax1099 allows you to manually upload the data or integrate with an existing accounting software to perform TIN match.

It is best for payers seeking unified platform for W‑9 intake, TIN matching, 1099 e‑file, and recipient delivery.

Here are some highlight features of Tax1099:

  • Validate over 5 million TIN checks every day with IRS.
  • API based real-time TIN matching under 30 seconds.
  • Automates TIN matching and return filing for over 50 US states.
  • Automate the W-9 collection with e-signatures.

2. IRS e‑Services TIN Matching Program

IRS e-Services TIN Matching Program is a free online tool that allows payers and authorized agents to verify Taxpayer Identification Numbers (TINs) and names directly with the IRS database. IRS offers two types of tools for automated TIN matching; Interactive TIN Matching and Bulk TIN matching.

While interactive TIN matching verifies up to 25 name/TIN combinations, bulk TIN matching allows verification for up to 100,000 name/TIN combinations.

However, there are certain limitations with the e-matching system. For instance, only eligible filers and authorized agents can use IRS TIN Match. Also, there are no additional features like workflows, collaboration tools, or audit logs.

Here are the key features of IRS e-Services TIN:

  • No intermediary fees or third-party tools required.
  • Audit-ready reports which are downloadable for documentation.
  • Secure objective repository helps retrieve transcripts and TIN Matching results from the secure mailbox.
  • Offers two modes of lookup: Interactive (single lookup) and Bulk (≤ 100 000 rows)

3. Track1099 (Avalara 1099) Real‑Time TIN Match

Track1099, now a part of Avalara offers a real-time TIN match tool for $0.45. It offers TIN matching for various forms like 1099-NEC, MISC, B, DIV, INT, K, OID and PATR. Although TIN does not offer a lookup feature, but the API gives a pass/fail service.

Keep in mind that the TIN verification is only available during the checkout process. Track1099 is best for developer‑led finance teams who wish to embed TIN checks into custom apps.

Here are some key features of Track1099:

  • Supports batch validation and B-notices workflow
  • Integrates with platforms like QuickBooks, Xero, Bill.com, and NetSuite.
  • Offers an address verification service through USPS mail for $0.07.
  • REST API Sandbox integration offers 5,000 free calls per month for testing and integration.

4. TaxBandits TIN Verification API

TaxBandits offers an API for verifying and matching TIN with the IRS database. This API offers two types of TIN matching services: standard matching and real-time TIN matching.

While the standard matching offers batch validation of TINs within 24-48 hours, real-time TIN matching enables real-time validation in a single click. Real-time validation is best for validating TINs for new client onboarding.

Here are the key features of TaxBandits:

  • Offers various API-friendly developer tools such as SDKs, sandbox environment, and webhook support for asynchronous status updates.
  • TaxBandits holds SOC-2 certifications and data protection practices for enhanced security.
  • Direct TIN verification while filing 1099 and W-2 forms.
  • Offers a quick TIN correction feature with up to 2 attempts.

5. 1099 Pro TINCheck Validation

1099Pro offers both desktop and cloud-based SaaS application for verifying TIN online. It uses TINCheck software for real-time and bulk TIN matching. It’s SOAP/REST API automates TIN and SSN EIN lookup by integrating with a back-office system.

You can also use the APIs to verify compliances using US Government databases and global watchlists. Bulk verification is ideal for businesses with changing merchants or vendor lists.

One its USPs is that it checks your vendor data before annual tax filing returns so that you can avoid B-notice penalties.

Here’s what it offers:

  • Integrate API into existing system for efficient workflow.
  • Offers monthly and pay as you go plans.
  • Gives an approximately 24-hour turnaround time.
  • Submit files (up to 100,000 records) via the built-in upload wizard.

Which TIN Verification is Best for You?

Based on the features that each of the above tools offer, we have created a table that shows you which platform if best for your needs.

Need Best Fit Why
Unified W-9 + 1099 compliance Tax1099 End-to-end platform, strong API, SOC-2 security
Free authoritative lookup IRS e-Services No cost, IRS direct source
Programmatic real-time triggers Track1099 Developer-friendly REST API
Outsourced B-Notice letters TaxBandits “BanditComplete” service handles IRS B-Notice print-mail, corrections, and compliance workflows.
On-premise + bureau model 1099 Pro Offers TINCheck validation, secure on-premise software, and optional managed 1099 filing bureau services.

FAQs:

1. Is TIN verification mandatory?

TIN verification is not mandatory. However, it is a preventive measure to avoid penalties. Any TIN mismatch can levy penalties and 24% withholding.

2. Can a payer rely solely on a signed W‑9?

No. While wrong W-9 shifts the liability for false information towards the payee, it does not protect payer from IRS backup withholding requirements or CP2100/CP2100A notices. Thus, they should validate and match TIN before submitting W-9.

3. How often should payers re‑verify vendor TINs?

Payer should make it a practice to re-verify vendor TINs at least three times. Specially, during the onboarding, before each payment batch and after annual 1099 filing.

4. Does Tax1099 keep TIN match audit logs?

Yes. Tax1099 keeps a log of match codes, timestamps and user IDs for at least four years. These logs are exportable, making it easy to show up during the audit.

5. What if the IRS match returns “TIN Not Issued”?

If the IRS match returns “TIN not issued”, start backup withholding immediately and request an updated W-9 from the vendor. Once you’ve recieved the new TIN, match it using TIN verification tool.

B-notices and other penalties can hurt your businesses. Hence, it is important to stop B-notice before it occurs. Use Tax1099 to verify TINs in batches or in real-time. The platform offers free lookup with 24*7 real-time TIN validation.