TIN Match -Taxpayer Identification Number Matching
Avoid B-Notices and penalties of up to $260 per incorrect information and/or late returns by proactively matching tax identification number (TIN) and name combinations.
There is a $530 penalty per information return for willful disregard.
Where you find a match, you know you have the correct information for that vendor. Where there is a rejected or unissued TIN, however, you will want to follow up with the vendor to collect the correct data. You can use our W-9 e-Solicitation to gather the updated information.
Managing the B-Notice process with us allows you to maintain all of your relevant vendor information in one place.
What is TIN Matching?
TIN Match is a tool to confirm the name and taxpayer identification number for 1099 vendors. We check the information for you with the IRS database. That way you know you are filing with the most correct information.
How to verify a TIN?
TIN, Taxpayer Identification Number, businesses or charities in place of SSN used by individuals, for bank accounts and filing with IRS.
Application for the TIN Matching be made after successful completion of the two-step eServices Registration process with IRS.
Now it’s very simple to verify a TIN with Tax1099.com, and also offering TIN Match for Business and Bulk TIN Match services as well.
Can I Do TIN Match Myself?
Yes! You can register with the IRS E-Services tool. Plan on the process taking a few weeks to complete. The IRS needs to confirm your SSN and name along with some tax details you enter.
Then they will send you a login ID and password via the US Postal Service.
For Interactive Sessions, you will receive immediate results.
Once you receive the login, you will have several steps to complete:
1.Login to the site.
2.Select the organization you will represent during the session.
3.Select TIN Matching.
4.Accept the TIN Matching Terms of Agreement.
5.Choose to begin an Interactive or Bulk Session.
6.Interactive Session in step 5 - you can enter between 1 and 25 TIN and Name combinations.
7.Bulk Session in step 5 - you must upload a file that matches the IRS’s requirements.
For Interactive Sessions, you will receive immediate results.
For Bulk Sessions, you receive results in a few hours to a day or two.
The results are numeric values that you will need to translate using the key the IRS provides.
You must track the results yourself somewhere so you can refer to them later. A master spreadsheet can work for this purpose.
An Easier Way - Tax1099 TIN Matching / TIN Lookup / TIN Verification Feature
You can also have a service perform all these tasks for you. Tax1099.com offers TIN Matching service which uses the Bulk Session feature. You enter or import your vendors the same way you do to create your 1099s. Select TIN Match and the site takes care of the rest.
You get an Accepted or Rejected status for each Match requested. Those results remain online in your account.
Is TIN Matching Necessary?
The IRS validates the TIN / Tax ID Verification / Tax ID Matching in their database when you file a 1099. When they receive a TIN/name combo that doesn’t match they issue a CP2100 or CP2100A.
That means the Payer has to issue a B-notice to the Recipient. Later you may receive a penalty notice if the incorrect information is not fixed.
Those penalties can be up to $260 per occurrence. Even for a small filer a few of those will add up to an amount you don’t want to pay.
The largest penalty is $3,000,000 with a smaller max for small businesses.
Being proactive and using a TIN Match service can help you or your clients avoid those penalties.
Check the TIN and name before issuing payment to provide even more protection. Doing the match that way also encourages the vendor to comply since they know you won’t pay until they do.
What Happens when the TIN Check Info Doesn’t Match?
When the IRS rejects your TIN Match, you should follow up with the vendor to confirm the information.
Collecting a W-9 is the proper way to do this, but you may have already collected a W-9 from the vendor.
In that case, it may be a good idea to call or email the person who completed the form. Often there is confusion over what name to enter the name lines on the W-9 form.
For clarification, line 1 on the W-9 is for the taxable entity name.
That may be the individual’s name if they operate a sole-proprietorship or single-member LLC, even if they designated a “doing business as” name when they created their Employer Identification Number.
For those two entities, the IRS actually prefers they enter their SSN, but will accept the EIN as well.
Line 2 on the W-9 is for a business or disregarded entity name. This is where the “doing business as” name belongs.
When vendors confuse those, they aren’t trying to get away with something (usually). They just don’t know what goes where.
Compliance Is Key
The government has increased inspection of filers in the last few years.
Using tools like TIN Lookup help you stay in compliance. Proactive TIN matching is something the IRS recommends.
The IRS also looks for your TIN Match process when they develop a penalty notice.
Checking the TIN/name combinations can help you reduce the penalty in the first place.
TIN Matching FAQ’s
Why would the TIN and name not match?
We often see vendors provide a Doing Business As or DBA name instead of their legal entity name when completing the W9. The IRS will only recognize the legal entity name that matches the TIN associated with it. Make sure your vendors supply their legal entity name to you.
How much does TIN Match cost?
The TIN Match costs $1.00 per request to match a TIN/Name combination with the IRS database. Larger filers can take advantage of discounted pricing by purchasing our E-File Plus Compliance package, which provides 250 TIN matches for $149, and charges the lower amount of $0.50 per TIN Match after the first 250.
Should I check the TIN Match before e-filing?
Ideally, you will check the TIN before you e-file. Once your vendor data is loaded or entered, you can go to Manage Recipients to check the TINs either individually or in bulk. If you are pushing the deadline to send forms to your vendors, you can use the TIN Match at checkout. Be sure to schedule the e-file to occur by the e-file deadline of March 31st. That will allow you time to receive the TIN Match results and correct any mismatches before the e-file occurs.