How can payee Taxpayer Identification Numbers (TIN) be verified

Payee Taxpayer Identification Numbers (TIN) can be verified through the IRS's Taxpayer Identification Number (TIN) Matching Program. This program allows payors of reportable payments and their authorized agents to verify the TINs provided by payees against IRS records. Here is a detailed explanation of the process and requirements:

1. Eligibility:
   • The TIN Matching Program is available to payors of income subject to backup withholding, such as those who file Forms 1099-B, 1099-DIV, 1099-G, 1099-INT, 1099-K, 1099-MISC, 1099-NEC, 1099-OID, or 1099-PATR.
   • Payors must have filed Form 1096, Annual Summary and Transmittal of U.S. Information Returns, reporting income paid on Form 1099, or use the Filing Information Returns Electronically (FIRE) system to submit information returns electronically, in one of the last two years.
2. Application and Registration:
   • Payors or their authorized agents must apply to participate in the TIN Matching Program by submitting an application as specified in Publication 2108A, On-Line Taxpayer Identification Number (TIN) Matching Program.
   • Participants must designate individuals who are authorized to access the TIN Matching system on their behalf. These individuals must register with the IRS to obtain a user account.
3. TIN Matching Process:
   • The TIN Matching system allows users to match TINs and names directly against IRS records.
   • Users can submit up to 25 TIN match requests in real-time through the online interactive program or up to 100,000 TIN match requests in bulk, which can be processed overnight via a Secure Mailbox.
4. Results and Codes:
   • The system provides result codes indicating whether the TIN and name combination matches IRS records. The possible result codes include:
     • 0: Name/TIN combination matches IRS records.
     • 1: Missing TIN or TIN not a nine-digit number.
     • 2: TIN not currently issued.
     • 3: Name/TIN combination does NOT match IRS records.
     • 4: Invalid request (e.g., contains alphas, special characters).
     • 5: Duplicate request.
     • 6: Matched on SSN, when the TIN type is unknown.
     • 7: Matched on EIN, when the TIN type is unknown.
     • 8: Matched on SSN and EIN, when the TIN type is unknown.
5. Confidentiality and Use:
   • Participants must maintain the confidentiality of information obtained through TIN solicitation activities in accordance with IRS regulations.
   • The matching details received through the TIN Matching Program cannot be used to determine whether to open or close an account with a payee.
6. Access and Support:
   • Users access the TIN Matching system via the IRS e-Services platform.
   • If users encounter issues, they can contact the IRS e-help Desk for assistance. For unresolved issues, interactions can be escalated to the e-Services Technical Level 2 Provider Group.

By following these steps, payors can ensure the accuracy of the TINs provided by their payees, thereby reducing the risk of errors and the need for backup withholding notices.

Sources:
Publication 1281 (12/2023)
Notice 97-45
Publication 1518 (11/2012)
Publication 1582
Rev. Proc. 2003-9
IRM Part 3. Submission Processing. Chapter 42. Electronic Tax Administration. Section 8. E-Services Procedures for Electronic Products and Services Support (EPSS)