TIN Matching Program
Tax2efile offers a TIN check program that allows the users to check their Tax Identification Numbers before filing their forms to the IRS. This service is offered for Forms 1099 and 1098.
What is a TIN check?
The TIN matching program is a web-based tool that can be used through the IRS e-service or by filing your 1099 Forms through Tax2efile. The program was established for payers of reportable payments to be subject to backup withholding provisions. The program allows a participant to check the TIN furnished by the payee against the name/TIN combination in the IRS database before filing.
What is a TIN?
The term “TIN” is defined as the identifying number assigned to a person under Internal Revenue Code. Specifically, a TIN may be a Social Security Number (SSN), Employer Identification Number (EIN), Individual Taxpayer Identification Number (ITIN), or Adoption Taxpayer Identification Number 8 (ATIN). A valid Social Security Number may only be issued by the Social Security Administration. An EIN, ITIN, or, ATIN may only be obtained through the Internal Revenue Service (IRS).
Who will be able to use the TIN Matching Program and how will it help me to reduce errors on my payee TINs?
Payers or their authorized agents, who submit Form 1099 series simply request Tax2efile and we will check your TINs. TIN Matching assists the payer in determining if the payee’s TIN/name combination contained on their Forms, matches the TIN/name combination contained in IRS tax filing records.
What type of response will users receive?
The TIN Matching program provides a numerical response indicator for each match request. The potential responses include:
| ‘0’ | Name/TIN combination matches IRS records |
| ‘1’ | Missing TIN or TIN not 9-digit numeric |
| ‘2’ | TIN is not currently issued |
| ‘3’ | Name/TIN combination does NOT match IRS records |
| ‘4’ | Invalid request (i.e., contains alphas, special characters) |
| ‘5’ | Duplicate request |
| ‘6’ | (Matched on SSN), when the TIN type is (3), unknown, and a matching TIN and name control is found only on the NAP DM1 database. |
| ‘7’ | (Matched on EIN), when the TIN type is (3), unknown, and a matching TIN and name control is found only on the EIN N/C database |
| ‘8’ | (Matched on SSN and EIN), when the TIN type is (3), unknown, and a matching TIN and name control is found on both the NAP DM1 and the EIN N/C databases. |
What is the penalty for a payer who furnishes an incorrect name/TIN to IRS?
The IRS can apply a penalty to the filer due to failure to file a complete and accurate information return, including a failure to include the correct payee TIN. The penalty is $50 per return, with a maximum penalty of $250,000 per year ($100,000 for small businesses). The penalty for intentional disregard is $100 per return, with no maximum penalty.
Are there any costs to the payer using TIN Matching?
Tax2efile charges $1.00 per TIN Check. To learn more about our prices, click here.