TIN Verification
What is TIN Verification?
TIN verification allows filers to check that a name and TIN combination matches IRS records before filing. TIN Verification ensures that all recipient data is accurate and up to date according to the IRS databases. With TIN Verification, you can make sure your TINs are correct before you file.
During TIN verification, the IRS processes each combination and returns a code value for each entry. In total there are nine different codes:
- “0” – Match
- “1” – Missing TIN, or not a nine-digit number
- “2” – TIN is not issued
- “3” – Not a match
- “4” – Invalid request
- “5” – Duplicate request
- “6” – SSN Match on the NAP DM1 database
- “7” – EIN Match on the EIN/NC database
- “8” – EIN & SSN Match on both EIN/NC and NAP DM1 databases
It’s important to note that the IRS may determine that a TIN combination is invalid, but they do not specify if the name or the TIN provided is incorrect. This leaves it up to the filer to fix the issue and document the process where applicable.
What is a TIN?
A TIN (Taxpayer Identification Number) can be either a Social Security Number or an Employer Identification Number. The IRS uses a TIN to verify the identity of each payee.
Each individual, company, and even non-profit organization must apply and acquire a TIN. Upon approval a unique nine-digit number is assigned and must be used for that person, company, or non-profit organization.
There are several different types of TIN, which all serve a unique purpose. The term ‘TIN’ is a general term that can be used to describe all of the types of TINs.
Although there are many types, and each has their own format, each TIN is a unique nine-digit number. The types of TIN include:
- SSN (Social Security Number)
- EIN (Employer Identification Number)
- ITIN (Individual Taxpayer Identification Number)
- ATIN (Taxpayer Identification Number for Pending U.S. Adoptions)
- PTIN (Preparer Taxpayer Identification Number)
All types of TIN can be submitted using IRS TIN verification / TIN matching.
How does the TIN Verification process work?
After you have all of your data uploaded into your account, simply click the 'TIN Verify' button from the menu at the top of the page. This will run all TINs in all of your filings for the selected tax year.
Why is this beneficial?
Using TIN verification can prove very useful for filers. Verifying this information before filing can help you to avoid B & P notices, fines and penalties.
According to IRC 6721, filers who report a missing TIN or a TIN that is determined to be incorrect will be subject to a penalty. Failure to correct a TIN may result in the filer receiving Notice 972CG with a list of the invalid TIN(s). This can be avoided altogether with TIN verification before filing.
By catching TIN issues before you file, you give yourself the opportunity to fix these issues prior to filing where the IRS would take notice of these issues. This also gives you the opportunity to do a TIN solicitation to get the most up to date information from your recipients to fix these issues prior to filing.