\n| Recipient\u2019s TIN <\/td>\n | The person or entity whose payment is being reported <\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n As a payer, you can enter only one recipient TIN on each Form 1099.<\/p>\n Which Recipient TIN Should Filers Use: SSN, ITIN, ATIN, or EIN? <\/h2>\nThe right TIN depends on who the taxpayer is and how the business is treated for federal tax purposes. The easiest way to identify it is to check the recipient\u2019s completed Form W-9.<\/p>\n For instance, if a freelance designer who operates a sole proprietorship called \u201cX Design Studio\u2019 gives the payer a Form W-9 showing their individual name on Line 1 and the business name on Line 2, then while preparing the 1099, the payer should use the name and TIN combination shown on the completed Form W-9, rather than choosing a TIN based only on the business name.<\/p>\n \n\n\nRecipient Type <\/strong><\/th>\nTIN to Enter <\/strong><\/th>\nRecipient Name to Report <\/strong><\/th>\n<\/tr>\n\n| Individual <\/td>\n | SSN, ITIN, or ATIN, as applicable <\/td>\n | Individual\u2019s name <\/td>\n<\/tr>\n | \n| Individual who properly uses an ITIN <\/td>\n | ITIN <\/td>\n | Individual\u2019s name <\/td>\n<\/tr>\n | \n| Sole proprietor <\/td>\n | SSN or EIN permitted under Form W-9 rules <\/td>\n | Individual owner\u2019s name <\/td>\n<\/tr>\n | \n| Individual-owned single-member LLC that is disregarded <\/td>\n | Owner\u2019s SSN or EIN, not the LLC\u2019s EIN <\/td>\n | Individual owner\u2019s name <\/td>\n<\/tr>\n | \n| Disregarded LLC owned by another U.S. entity <\/td>\n | Owner entity\u2019s TIN <\/td>\n | Owner entity\u2019s tax name <\/td>\n<\/tr>\n | \n| Partnership <\/td>\n | EIN <\/td>\n | Partnership\u2019s tax name <\/td>\n<\/tr>\n | \n| Multi-member LLC taxed as a partnership <\/td>\n | EIN <\/td>\n | LLC\u2019s tax name <\/td>\n<\/tr>\n | \n| Corporation <\/td>\n | EIN <\/td>\n | Corporation\u2019s tax name <\/td>\n<\/tr>\n | \n| LLC taxed as a corporation <\/td>\n | EIN <\/td>\n | LLC\u2019s tax name <\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n The IRS recognizes SSNs, EINs, ITINs, and ATINs as different types of TINs. An SSN identifies an individual, an EIN identifies a business entity, and an ITIN is used by certain individuals who cannot obtain an SSN.<\/p>\n How Do Filers Transfer the Recipient Name and TIN From Form W-9 to Form 1099? <\/h2>\nFor a U.S. recipient, request the applicable Form W-9 and use it to determine the recipient\u2019s name and TIN for Form 1099 reporting. Transfer the taxpayer name and applicable TIN as they appear on the W-9.<\/p>\n \n\n\nForm<\/strong> W-9 Information <\/strong><\/th>\nForm<\/strong> 1099 Entry <\/strong><\/th>\n<\/tr>\n\n| Line 1 \u2014 Taxpayer name <\/td>\n | First recipient name line <\/td>\n<\/tr>\n | \n| Line 2 \u2014 Business, DBA, or disregarded entity name <\/td>\n | Second recipient name line, when applicable <\/td>\n<\/tr>\n | \n| Part I \u2014 Applicable TIN <\/td>\n | Recipient\u2019s TIN field <\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Before filing, check that the name and TIN belong to the same taxpayer. For example, if a sole proprietor\u2019s W-9 lists the owner\u2019s name on Line 1 and a business name on Line 2, do not replace the owner\u2019s name with the business name on the first line.<\/p>\n If the W-9 information is unclear or the name and TIN do not correspond, request a corrected W-9 before filing.<\/p>\n What If the Recipient TIN Information Is Unclear or Incomplete?<\/h2>\nWhen the recipient\u2019s information does not clearly identify the correct TIN, check the completed Form W-9. Match the TIN in Part I with the taxpayer name on Line 1 and the tax classification on Line 3a before filing. The IRS says the TIN provided should match the name entered on Line 1.<\/p>\n If the Recipient Provides Both an SSN and EIN<\/h3>\nThe TIN that matches the taxpayer name and tax classification shown on the completed Form W-9 should be used. For example, a sole proprietor generally reports the individual\u2019s name on Line 1, even when a business name appears on Line 2.<\/p>\n If the Form W-9 Information Is Inconsistent<\/h3>\nAsk the recipient for a corrected Form W-9 when the name, tax classification, and TIN do not line up. Do not choose between the SSN and EIN based only on the business name.<\/p>\n If the Recipient Has Not Provided a TIN<\/h3>\nDo not:<\/p>\n \n- Enter the payer\u2019s TIN<\/li>\n
- Make up a taxpayer identification number<\/li>\n
- Enter zeros or another placeholder<\/li>\n
- Substitute an unrelated SSN or EIN<\/li>\n<\/ul>\n
Request the recipient\u2019s taxpayer information before filing. If the recipient still does not provide a TIN, leave the recipient TIN box blank. Backup withholding generally applies to reportable payments when the recipient does not provide a TIN, provides an obviously incorrect TIN, or the IRS tells the payer to begin withholding. The current backup withholding rate is 24%. <\/p>\n Recipient TIN Scenarios: How Should Filers Handle Common Situations? <\/h2>\nThe name on an invoice does not always tell you which TIN belongs on Form 1099. These common examples can help you identify the right information before filing.<\/p>\n Scenario 1: The Vendor Uses a DBA on Invoices<\/h4>\nLet\u2019s say you receive invoices from \u201cBright Design Studio,\u201d but the Form W-9 has listed Alex Carter as the taxpayer.<\/p>\n What you should do:<\/strong> Enter Alex Carter\u2019s name and applicable TIN on Form 1099. You can use \u201cBright Design Studio\u201d on the second name line as the business or DBA name.<\/p>\nScenario 2: A Disregarded LLC Has Its Own EIN<\/h3>\nLet\u2019s say Taylor owns Taylor Consulting LLC. This is a single-member LLC that is treated as a disregarded entity. The LLC also has its own EIN.<\/p>\n What you should do:<\/strong> Use Taylor\u2019s SSN or EIN, not the LLC\u2019s EIN.<\/p>\nScenario 3: You Pay an LLC, but the W-9 Identifies the Owner<\/h3>\nIn another scenario, imagine that you made a payment to an LLC, but the completed W-9 identifies the individual owner as the taxpayer.<\/p>\n What you should do:<\/strong> Use the owner\u2019s taxpayer name and applicable TIN shown under the W-9 rules instead of assuming the LLC\u2019s EIN belongs on the 1099.<\/p>\nScenario 4: The Invoice Name Differs From the W-9 Name<\/h3>\nWhen you check your vendor records, you find that it shows one business name, while the W-9 lists a different taxpayer name.<\/p>\n What you should do:<\/strong> Use the taxpayer name and corresponding TIN required for Form 1099 reporting, rather than relying only on the invoice.<\/p>\nScenario 5: An LLC Is Taxed as a Corporation<\/h3>\nYour vendor operates as an LLC, but the W-9 shows that the LLC is taxed as a corporation.<\/p>\n What you should do:<\/strong> Report the LLC\u2019s applicable tax name and EIN, because the LLC itself is the taxpayer being reported.<\/p>\nFAQs <\/h2>\n1. Does the type of Form 1099 determine whether I use an SSN or EIN? <\/h5>\nNo, the type of form has no bearing on it. The applicable recipient TIN depends on the taxpayer being reported, not simply on which type of Form 1099 the payer files. <\/p>\n 2. Is the recipient TIN the same as the payer\u2019s TIN? <\/h5>\nNo. The payer\u2019s TIN identifies the filer, while the recipient's TIN identifies the taxpayer whose payment is being reported. <\/p>\n 3. Can an ITIN be used as the recipient TIN on Form 1099? <\/h5>\nYes. An ITIN may be the appropriate recipient TIN when the individual properly uses an ITIN for U.S. tax purposes. <\/p>\n 4. Should the recipient TIN match the first or second name line? <\/h5>\nThe TIN should correspond to the taxpayer reported on the first recipient name line. A DBA or disregarded entity may appear on the second line. <\/p>\n 5. Does the amount paid affect which Recipient TIN I enter? <\/h5>\nNo. The payment amount may affect whether reporting is required, but it does not determine which taxpayer identification number belongs to the recipient. <\/p>\n \nFile With the Right Recipient TIN<\/h4>\nTax1099 helps you collect W-9s and check recipient name and TIN combinations before filing with real-time, 24-hour, and bulk TIN matching.<\/p>\n | | | | | | | |