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TIN Matching

TIN matching allows a payer to submit a TIN/Name combination to be matched against IRS records. You can accomplish this interactively and receive an instant response for up to 25 TIN/Name combinations at a time or with Bulk TIN Matching, you can submit an electronic file of as many as 100,000 TIN/Name combinations and receive matching results by email within 24 hours. Both programs will:

  • Match the payee with W-9 name and TIN with IRS records;
  • Decrease backup withholding and penalty notices;
  • Reduce the error rate in TIN validation.

IRS regulations are outlined in Publication 2108A (On-Line Taxpayer Identification Number TIN Matching Program).

TIN matching requests can be made for the following payment types:

  1. Miscellaneous Income (1099-MISC)
  2. Dividends and Distributions (1099-DIV)
  3. Interest Income (1099-INT)
  4. Real Estate Brokers and Barter Exchange Transactions (1099-B)
  5. Original Issue Discount (1099-OID)
  6. Taxable Distributions Received from Cooperatives (1099-PATR)
  7. Merchant Card Third Party Network Payments (1099-K)

Within 24 hours of sending a request, the submitter will receive a response file, which indicates the status of each TIN/Name combination. The IRS displays one of the following “Match Indicator” codes next to the TIN and name combination:

0 = TIN and Name combination matches IRS records.

1 = TIN was missing or TIN not 9-digit numeric .

2 = TIN entered is not currently issued.

3 = TIN and Name combination does not match IRS records.

4 = Invalid TIN Matching request (i.e., contains alphas, special characters)

5 = Duplicate TIN Matching request.

6 = TIN and Name combination matches IRS SSN records.

7 = TIN and Name combination matches IRS EIN records.

8 = TIN and Name combination matches IRS SSN and EIN records.

Essentially, a 0 is a match and any value other than a 0 is a mismatch.

According to the IRS, there are approximately two million payees that have incorrect or missing TINs. The IRS sent 50,000-65,000 proposed penalty notices last year. The IRS penalty is $50.00 per mismatch!! Avoid IRS penalties by processing your Bulk TIN Matching.

Using the TIN Matching system allows you to verify the accuracy of taxpayer TIN and name information prior to submitting information to IRS. Internal Revenue Code 6724 provides any penalties under Section 6721 may be waived if the filer shows the failure to file a correct TIN on an information return was due to reasonable cause and not willful neglect. Filers may prove due diligence and receive a waiver from proposed penalties if they prove the TIN and name combination they submitted matched IRS records. Providing a copy of the Print Screen of your Interactive Results will be considered proof of due diligence.

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Erich J. Ruth

Erich J. Ruth provides technical support for National Software which is the parent company for 1099FIRE. 1099FIRE develops and markets a comprehensive range of products that enables any size of business or institution to effectively manage and comply with year-end filing requirements. 1099FIRE is an employee-owned company located in Phoenix, Arizona.

If you have any questions or comments about our software, feel free to contact us at any time.

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