The IRS TIN Matching system is a free, internet-based tool that allows authorized payers to verify the combination of TIN (Taxpayer Identification Number) and name for payees (recipients) before submitting information returns such as 1099-NEC, 1099-MISC, 1099-INT, 1099-K and more. TIN Matching is very important for tax professionals and businesses filing Forms 1099, as it helps reduce errors and avoid potential IRS penalties associated with incorrect TIN reporting (sending tax forms where the name and tax ID do not match the IRS records).
Our 1099 Software generates 1099 TIN Matching requests ready for upload to the IRS eService’s website. After users receive the response file from the IRS, the software assists in interpreting and processing the contents, making it easier to understand and act on the verification results. In this post, we will be covering the details of TIN matching including file format, codes and process.
What file format is used for IRS TIN Matching?
The IRS TIN Matching file is a special type of file in the text format (.TXT). You can generate these kinds of files using a simple text editor such as Notepad (Windows) or TextEdit (Mac). You can also use more advanced editors such as Notepad++, Visual Studio Code and GitHub Atom.
According to IRS Publication 2108A, the IRS TIN Match file must include one line per recipient and each line needs to be formatted as follows:
TIN TYPE; TIN NUMBER; NAME; ACCOUNT NUMBER (OPTIONAL)
TIN TYPE – means a one digit number where "1" represents and Employer Identification Number (EIN), "2" represents a Social Security Number (SSN) and "3" represents an unknown TIN type.
TIN Number is the 9-digit SSN or EIN for the taxpayer.
TIN Name is the taxpayer's full name or business name. Users should omit any special characters that are part of the business name with the exception of hyphens (-) and ampersands (&). Enter a minimum of 1 and a maximum of 40 alphanumeric characters.7
Account Number - is an optional field that may contain payor provided information such as a bank account number. Enter a maximum of 20 alphanumeric characters.
What codes are used for IRS TIN Matching?
The IRS TIN Matching program provides a numerical response indicator for each match request. The potential responses codes include:
Code 0 : Name/TIN combination matches IRS records
Code 1 : Missing TIN or TIN not 9-digit numeric
Code 2 : TIN not currently issued
Code 3 : Name/TIN combination does NOT match IRS records
Code 4 : Invalid request (i.e., contains alphas, special characters)
Code 5 : Duplicate request
Code 6 : (Matched on SSN), when the TIN type is (3), unknown, and a matching TIN and name control is found only on the NAP DM1 database.
Code 7 : (Matched on EIN), when the TIN type is (3), unknown, and a matching TIN and name control is found only on the EIN N/C database.
Code 8 : (Matched on SSN and EIN), when the TIN type is (3), unknown, and a matching TIN and name control is found on both the NAP DM1 and the EIN N/C databases.
What is the IRS TIN Matching Process?
Please follow these steps to match taxpayer identification numbers with the IRS records:
- Step One: Generate TIN Matching Request file in the format defined by IRS Publication 2108A. Please see the details above under the section “What file format is used for IRS TIN Matching?”. You can generate the file manually or use W2 Mate software (the menu item name inside W2 Mate is Tools > Bulk TIN Matching > Create Bulk TIN Matching Request File). Please note that W2 Mate allows you to first import your data from sources such as Intuit QuickBooks, Sage 50, Microsoft Dynamics and Excel before you generate the TIN request file.
- Step Two: Log into your IRS e-Services account, navigate to the “On-line Bulk TIN Matching Request screen”, click “Browse”, select the file generated under “Step One” above, enter your email address and then click “Submit”.
- Step Three: You will receive a message similar to this one: “You, bulk TIN Matching request has been received and will be processed withing 24 hours You will receive an email notification when the response has been sent to your secure mailbox, please use the tracking number listed below to associate the response with the appropriate .txt file. “ . Write down the tracking number you get.
- Step Four: Wait one business day and then download the response file (you will also get an email if you provided your email address at the time of uploading the request). Analyze the data in the response file manually or use our W2 Mate software (the menu item name inside W2 Mate is Tools > Bulk TIN Matching > Open Bulk TIN Matching Response File).