TinMatch

What is TIN Matching?

TIN Matching is a service offered by the Internal Revenue Service (IRS) to help payers verify the Taxpayer Identification Number (TIN) and name combination of their payees against IRS records. The purpose of this service is to prevent TIN-related errors on information returns.

TIN Matching: A Step‑by‑Step Overview

The IRS TIN Matching program lets payers confirm—before filing—that a payee’s Taxpayer Identification Number (SSN, ITIN, or EIN) and legal name agree with IRS records. Verifying this data up‑front helps you avoid CP2100/2100A “B‑notice” letters, backup‑withholding requirements, and penalties of up to $310 per return for incorrect information.

1. Submit a Request – After enrolling in e‑Services, an authorized payer or its designated agent can send:
   • up to 25 name/TIN pairs for an immediate on‑screen response, or
   • up to 100 000 pairs in a single bulk‑file upload.
   Requests are transmitted through the IRS TIN Matching application.
2. IRS Validation – Each pair is compared with the IRS master file. The system returns a single‑character response code (“0” through “5”) indicating an exact match, partial match, or no match.
3. Review & Correct – Any code other than “0 – Exact Match” signals a discrepancy. Investigate spelling errors, transposed digits, or name changes and obtain corrected information from the payee before issuing forms.
4. Eligibility – You may use the TIN Matching system if you filed at least one information return in either of the two preceding tax years.

By adopting TIN Matching early in your year‑end workflow, you can dramatically cut down on backup‑withholding notices and rework while safeguarding your organization against IRS penalties. The service is especially valuable for filers of 1099, ACA, and W‑2 forms. For a detailed enrollment walkthrough, see our TIN Matching tutorial.

A TIN (Taxpayer Identification Number) error on a Form 1099 means the name/TIN pair you reported does not match the IRS master file. Mismatches can stem from typos, use of nicknames, recent name changes, or an obsolete EIN/SSN. If the problem is not fixed promptly, you risk backup‑withholding requirements and escalating information‑return penalties.

Proactive TIN Matching before filing virtually eliminates B‑Notices and backup‑withholding headaches by confirming the name/TIN pair in real time. Always obtain a fresh Form W‑9 from new payees and keep records of all validation attempts in case the IRS questions your due‑diligence procedures.

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What Happens if TIN does not match IRS Records?

If a TIN doesn't match the Internal Revenue Service (IRS) records, the IRS will likely notify the payer about the discrepancy, typically through a CP2100 or CP2100A notice. This notification serves as a prompt for the payer to take necessary corrective action.

The payer is required to begin backup withholding on any reportable payments due to the payee if the TIN continues to mismatch even after issuing a "B Notice" to the payee. The "B Notice" instructs the payee to correct any information and to provide a properly completed Form W-9, 'Request for Taxpayer Identification Number and Certification', to the payer.

If the payer does not comply with the backup withholding requirement, they may become liable for paying the uncollected amount and potentially incur penalties.

Therefore, it's crucial to ensure that the TINs match IRS records to avoid such complications. If a mismatch is reported, it should be addressed promptly by reaching out to the payee to verify their information or through services like the IRS TIN Matching Program, which can help validate TINs before submitting forms to the IRS.

Is Tin Matching Required to File With the IRS?

While TIN matching is not technically required to file with the IRS, it is highly recommended. TIN matching is a proactive measure that allows payers to verify that the Taxpayer Identification Number (TIN) and name combinations on their information returns match those currently on file with the IRS.

The purpose of this service is to prevent TIN-related errors and mismatches on submitted forms, such as the 1099 forms. Errors or mismatches can result in backup withholding notices and potential penalties from the IRS, as well as additional administrative work to resolve the issues.

By participating in TIN matching before filing, businesses can reduce these potential issues. It's particularly beneficial for those who make reportable payments subject to backup withholding and for large volume filers. However, while the program can be very beneficial, the IRS does not mandate its use; it is an optional tool available to assist filers in reducing errors.