The IRS Bulk TIN/Name Matching
program is a great way to help companies stay out of trouble with
the IRS. Many companies are using this service to avoid receiving
notice from the IRS that the payer may be responsible for backup
withholding and/or certain penalties.
Payers, or their authorized agents,
may only perform TIN Matching for the TIN/Name combinations for
income subject to backup withholding and reported on Forms 1099-B,
DIV, INT, MISC, OID and/or PATR. TIN Matching assists the payer in
determining if the payee TIN/name combination contained on their
Form W-9, matches the TIN/name combination contained in IRS tax
When you file Forms 1099-Misc, DIV,
INT, B, OID or PATR, the IRS computer checks each Social Security
Number (or Tax ID Number) to see if it matches the Name, according
to the IRS database. Each mismatch can result in a $50 penalty up to
a maximum of $250,000 per company. Even if you file on paper, the
IRS checks for mismatches.
With the Bulk TIN Matching program, you can find and correct these
errors before filing to the IRS. The Bulk TIN Matching Program
through the IRS is free of charge to anyone. It takes the IRS one or
two months to certify your application, and at least one person must
also submit its tax returns to the IRS for a security clearance.
As an alternative, we can provide this service for $74 per file
submitted to the IRS. Each file can contain up to 10,000 records,
all for only $74. Take advantage of this service to correct any
errors prior to filing to the IRS. We also format the data to IRS
specifications, perform the uploads, downloads, and send you a
formatted report via a secure connection.
Three IRS publications explain the
TIN matching program and are available to you here:
1. IRS Revenue Procedure
2003-9 T.D. 9041 ; Dept. of the Treasury Internal Revenue
Service 26 CFR Part 31: “Taxpayer Identification Number (TIN)
Matching Program.” This explains the TIN matching program on pages
2. IRS Publication 2108A :
“On-Line Taxpayer Identification Number (TIN) Matching Program.”
This explains the online TIN matching program and how it might apply
to merchant acquiring banks.
3. IRS Publication 1281 :
“Backup Withholding for Missing and Incorrect Name/TIN(s).” This
discusses obligations and penalties regarding backup withholding for
missing name/TIN information.
Please send an e-mail to
firstname.lastname@example.org with any feedback or comments
about any of our products or services.