TIN Matching – Taxpayer Identification Number Matching
TIN Matching allows authorized payers to match 1099 payee information against IRS records prior to filing information returns. An authorized payer is one who has filed information returns with the IRS in at least one of the two past tax years. Interactive TIN Matching will accept up to 25 payee TIN/Name combinations on-screen while Bulk TIN Matching will allow up to 100,000 payee TIN/Name combinations to be matched via a text file submission. This e-service match the payee with W-9 name and TIN with IRS records, decrease backup withholding and penalty notices and reduce the error rate in TIN validation.
Guidelines and Instructions for the Interactive and Bulk On-Line Taxpayer Identification Number (TIN) Matching Programs
These guidelines provide procedures for the Internal Revenue Service’s Taxpayer Identification Number (TIN) Matching Program. The program is established for payers of Form 1099 income subject to the backup withholding provisions of ection 3406(a)(1)(A) and (B) of the Internal Revenue Code.
Prior to filing an information return, a Program participant may check the TIN (Taxpayer Identification Number) furnished by the payee against the name/TIN (Taxpayer Identification Number) combination contained in the Internal evenue Service database maintained for the Program.
The IRS will maintain a separate name/TIN (Taxpayer Identification Number) database specifically for the program and will inform the payor whether or not the name/TIN (Taxpayer Identification Number) combination furnished by the payee matches a name/TIN (taxpayer Identification Number) combination in the database.
The matching details provided to participating payors, and their authorized agents, will help avoid TIN (Taxpayer Identification Number) errors and reduce the number of backup withholding notice required under Section 3406(a)(1)(B) of the Internal Revenue Code.
The Interactive and Bulk TIN (Taxpayer Identification Number) Matching Programs are established under the authority of Revenue Procedure 2003-9. Revenue Procedure 2003-9 and IRC Section 6050W expand the IRS authority provided under Revenue Procedure 97-31, to allow the on-line matching of taxpayer identifying information as provided by payers of income reported on Forms 1099 B, DIV, INT, K, MISC, OID and PATR.