Taxpayer Identification Number Matching Program

Payers required to file form 1099 have been receiving a higher number of errors and notices related to incorrect name/Taxpayer Identification Number (TIN) combinations. 

The on-line Taxpayer Identification Number Matching Program is intended for filers of 1099 Statements from non-employee compensation, dividends, interest, miscellaneous, merchant card third-party network payments and others. Prior to filing the information return, the payer can check the name and TIN provided by the payee.

Sometimes, the TIN provided by the payee contains errors, or an error occurs by the payer when entering the information on the 1099. When this occurs, the IRS may send out Notice CP2100 or CP2100A, which carry a potential penalty of $280 per 1099 incorrectly filed. In addition to potential penalties, taxpayers issuing 1099s may be required to begin backup withholding.

In order to cut down on incorrectly filed 1099s, the Matching Program is available via the eServices Registration home page, available 24 hours a day. Currently, the IRS does not charge to participate in the program.

The Program can accept up to 25 name/TIN combinations at a time, or up to 100,000 if using a bulk process and uploading a text file. Once taxpayers have applied and accepted the terms and agreements, they will be prompted to enter a TIN Type (Employer Identification Number, Social Security Number, or Unknown), Taxpayer Identification Number and name to be matched against IRS records. 

If an invalid name/TIN combination is entered, the IRS will not provide the correct name/TIN due to privacy. The payer will have to contact the payee for the correct information.  

Contact a member of your Schneider Downs service team if you have any questions on the IRS TIN Matching Program, or if you have received a Notice CP2100 or CP2100A and need assistance.

About Schneider Downs Tax Services 

Schneider Downs’ tax advisors have experience and expertise in a wide range of industries, including Automotive, Construction, Real Estate, Manufacturing, Energy & Resources, Higher Education, Not-for-profits, Transportation and others. Our industry knowledge and focus ensure the delivery of technical tax strategies that can be implemented as practical business initiatives.  

To learn more, visit our dedicated Tax Services page.