The AIRTIN500 – TIN Validation Failed error occurs in ACA e-filing when the last name and SSN of a 1095 record do not match IRS records. This mismatch can involve the employee, or one or more covered individuals, and the IRS will not specify exactly which name/SSN is incorrect.
Why It Matters
The IRS requires corrected TIN validation. In early penalty-free years, the IRS might accept files with errors. Over time, enforcement increases, and penalties apply if:
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The employer or payer fails to match the name/SSN to IRS records.
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Payers do not correct mismatches before filing.
Steps to Fix TIN Validation Errors
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Check the W-9 Form – Confirm correct spelling of the name and SSN. Look for missing hyphens or other discrepancies.
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Check for Invalid Characters – Remove commas, periods, or symbols from names before e-filing.
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Verify Name Changes – If the employee or dependent recently changed their name, ensure records match Social Security Administration data.
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Run TIN Matching – Use the IRS TIN Matching Program to verify name and SSN combinations before filing.
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Check for EIN/SSN Mix-ups – Small businesses sometimes enter an EIN where an SSN is required.
Common Mistakes from Experience
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Using initials instead of the full legal name.
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Using the business EIN instead of an individual SSN.
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Assuming a name variation will match IRS records—it often doesn’t.
Final Tip
The earlier you correct TIN validation errors, the less time you’ll spend chasing missing or incorrect information. Invest time now in TIN matching and record checks to avoid future IRS rejections and penalties.