Invalid TIN - Next Steps
TIN Errors
When you receive a form that is marked as erred due to a name/TIN mismatch, the first step is to verify the information using the data from a W9 or I9. The next step is to contact the individual(s) in question, and document this process where possible.
Please see the following guidance from the IRS:
Due to privacy/disclosure issues, we can only inform you that the name and social security number do not match our database. Ask your client to double check the information and if they still believe there is no error, have the employee(s) contact IRS customer service who can direct them properly. You or your client won’t be able to act on the taxpayer’s behalf without a proper POA so that is why we recommend that the employees in question call IRS to confirm what name and SSN is on file for them. The customer service number is 1-800-829-1040, or they can contact their local IRS office. There are also specific numbers per state on IRS.gov they can use if they wish. Have them visit this link - https://www.irs.gov/uac/Contact-Your-Local-IRS-Office-1 for those numbers.
TIN Solicitation Process
To avoid potential fines/penalties, you should document your TIN solicitation process. The IRS has outlined the following process:
Initial Solicitation
Request the TIN as soon as the individual is enrolled or the payee relationship is established, unless you already have a valid TIN on file.
First Annual Solicitation
If the TIN isn’t received, send a first annual solicitation by December 31 of the year the relationship began (or by January 31 of the following year if it began in December).
Second Annual Solicitation
If the TIN remains missing, send a second (and final) solicitation by December 31 of the following calendar year.
If no TIN is provided after those two requests, no further solicitations are required.
For more information, please see the following:
Please note that all of your forms do not have to reach the 'Accepted' status to be accepted by the IRS. Even forms that are marked as 'Accepted with Errors' have been received and filed.
If you have any questions or doubts about your specific situation, we recommend consulting with a licensed tax professional.