Want to save time, work and potential penalties? First, get your vendors’ tax ID numbers (TINs) and tax classifications upfront. Then validate those TINs. Way back in 2003, the IRS introduced TIN matching. The IRS TIN Matching Program allows organizations to validate vendor TINs in advance of payment reporting.
Any organization can register and use the TIN Match Program. Getting the TINs right the first time avoids CP2100s, B-notices and 972CG penalty notices with all they entail.
In the TIN Match Program, you submit the vendor name and TIN, either singly online (up to 25) or through a batch file process. The program will return results indicating whether the vendor name and TIN match IRS records or not. It returns one of eight possible results for each submission:
- “0” indicates that the TIN and name MATCH IRS records
- “1” – TIN is missing or not a 9-digit number
- “2” – TIN entered is not one currently issued
- “3” – the name/TIN combination does NOT match IRS records
- “4” – the request is invalid
- “5” – indicates a duplicate request
- “6” – when matched on SSN, the TIN type is unknown, and a Matching TIN and name control is found only on the NAP DM1 database (IRS file of all validly issued SSNs and their related name controls)
- “7” – when matched on EIN, the TIN type is unknown, and a matching TIN and name control is found only on the EIN/NC database
- “8” – matched on EIN and SSN, the TIN type is unknown, and matching TIN and name control is found only on both the EIN/NC and NAP DM1 databases
The results help direct your correction of problem TINs. Get your TINs correct before 1099 payment reporting to avoid additional work and penalties.
For detailed program information, see IRS Publication 2108A “Online Taxpayer Identification Number (TIN) Matching Program.”
Many organizations use a third-party service to handle TIN Matching for them. The providers are registered with the IRS and set up to run vendor Names and TINs easily and efficiently through the IRS match system and flag mismatches for you. Some providers are stand-alone, while others provide holistic vendor onboarding that incorporates TIN Matching along with Sanctions checks and other vendor validations.