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Questions in 'TIN Matching' 
What files do the IRS use in the matching process?
Who needs an ITIN?
Account Ability cannot read my BULKTIN results file. How can I fix this?
Is there a way to avoid penalties for information returns filed with missing or incorrect taxpayer identification numbers (TINS)?
What is an ITIN used for?
What is an ITIN?
How is a Name/TIN mismatch identified?
Who needs an ATIN?
Can a sole proprietor have an SSN or does he or she need an EIN?
What should I do if a TIN was actually on file but was omitted from the Form 1099 or reported incorrectly?
When is a TIN considered missing or incorrect?
What is a Taxpayer Identification Number (TIN)?
What is an ITIN? ATIN?
Answers
What files do the IRS use in the matching process?
  • The DM-1 File -- A file containing all SSNs ever issued by the SSA.
  • The EIN-Name Control File -- A file containing all the IRS-assigned EINs.
  • The ITIN File -- A file containing all the IRS-assigned ITINs (On DM-1).
  • The ATIN File -- A file containing all the IRS-assigned ATINs (On DM-1).
  • Who needs an ITIN?
    IRS issues ITINs to foreign nationals and others who have federal tax reporting or filing requirements and do not qualify for SSNs. A non-resident alien individual not eligible for a SSN who is required to file a U.S. tax return only to claim a refund of tax under the provisions of a U.S. tax treaty needs an ITIN.

    Other examples of individuals who need ITINs include:

  • A nonresident alien required to file a U.S. tax return
  • A U.S. resident alien (based on days present in the U.S.) filing a U.S. tax return
  • A dependent or spouse of a U.S. citizen/resident alien
  • A dependent or spouse of a nonresident alien visa holder
  • Account Ability cannot read my BULKTIN results file. How can I fix this?
    Account Ability demands an ANSI encoded results file.

    In order to ensure that your results are ANSI encoded,

    a) Open your results file using Window's NOTEPAD
    b) From NOTEPAD's 'File' menu, select 'Save As...'
    c) Select ANSI encoding from the 'Encoding' drop down list
    d) Click the 'Save' button.

    Try opening your BULKTIN results again.
    Is there a way to avoid penalties for information returns filed with missing or incorrect taxpayer identification numbers (TINS)?
    Internal Revenue Code (IRC) section 6721 imposes a $100 penalty for each of the following infractions related to information returns:

    a) Information returns filed with a missing/incorrect TIN,
    b) Information returns filed untimely,
    c) Information returns filed on incorrect media,
    d) Information returns filed in an incorrect format, or

    any combination of the above.

    IRS Publication 1586 provides the information needed to avoid penalties for information return documents that are filed with missing or incorrect taxpayer identification numbers (TINs). This publication also explains the requirements for establishing reasonable cause.
    What is an ITIN used for?
    ITINs are for federal tax reporting only, and are not intended to serve any other purpose. IRS issues ITINs to help individuals comply with the U.S. tax laws, and to provide a means to efficiently process and account for tax returns and payments for those not eligible for Social Security Numbers (SSNs).

    An ITIN does not authorize work in the U.S. or provide eligibility for Social Security benefits or the Earned Income Tax Credit.
    What is an ITIN?
    An Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the Internal Revenue Service. It is a nine-digit number that always begins with the number 9 and has a range of 70-88 in the fourth and fifth digit, example 9XX-70-XXXX.

    IRS issues ITINs to individuals who are required to have a U.S. taxpayer identification number but who do not have, and are not eligible to obtain a Social Security Number (SSN) from the Social Security Administration (SSA).

    ITINs are issued regardless of immigration status because both resident and nonresident aliens may have a U.S. filing or reporting requirement under the Internal Revenue Code.
    Individuals must have a filing requirement and file a valid federal income tax return to receive an ITIN, unless they meet an exception.
    How is a Name/TIN mismatch identified?
    A Name/TIN combination is incorrect if it does not match, or cannot be found, on IRS or SSA files. For example, a Name/TIN mismatch occurs when an individual name is submitted with a TIN not associated with the individual name provided. A TIN is not interchangeable with different names. A business EIN must be used for a partnership, corporation, or non-disregarded Limited Liability Company (LLC). An SSN must be used with an individual name (In first name line). A Sole Proprietor must always provide his/her individual name. A Sole Proprietor may provide his/her Doing Business As (DBA) name (in second name line) in addition to the required individual name together with the matching SSN.
    Who needs an ATIN?
    If you are in the process of adopting a child and are able to claim the child as your dependent or are able to claim a child care credit, you may need an ATIN for your adoptive child.
    Can a sole proprietor have an SSN or does he or she need an EIN?
    A sole proprietor may have an SSN or an EIN. However, he or she must always furnish his or her individual name (on Name Line 1), regardless of whether he or she uses a SSN or an EIN. A sole proprietor may also provide a business name or Doing Business As (DBA) (on Name Line 2), but he or she must list his or her individual name first on the account with you.
    What should I do if a TIN was actually on file but was omitted from the Form 1099 or reported incorrectly?
    Make any required change to your records and use the correct information on future filings.
    When is a TIN considered missing or incorrect?
    Missing TIN - IRS considers a TIN to be missing if it is not provided, has more or less than nine numbers, or it has an alpha character as one of the nine positions.

    Example: Missing SSN: 123-45-678
    Example: Missing SSN: 123-45-67899
    Example: Missing EIN: 12- 345678P

    Incorrect TIN - IRS considers a TIN incorrect if it is in the proper format but the Name/TIN combination does not match or cannot be found on IRS or SSA files.

    Examples of Proper Format:

    Correct SSN:123-45-6789
    Correct EIN: 12-3456789
    What is a Taxpayer Identification Number (TIN)?
    A TIN is a Social Security Number (SSN) issued by the Social Security Administration (SSA) or an Employer Identification Number (EIN) issued by the IRS. A TIN can have only nine (9) numbers. It cannot have more or less than nine numbers nor can it have letters.
    What is an ITIN? ATIN?
    An ITIN is an individual Taxpayer Identification Number (ITIN) issued by the IRS and may be used as a TIN to meet federal tax obligations only. Resident aliens and nonresident aliens, who are not eligible for SSNs, use ITINs. An ITIN has nine numbers in the same format as an SSN and always begins with the number 9. The fourth and fifth digits are always within the range of 70 through 80.

    An ATIN is an Adoption Taxpayer Identification Number issued by the IRS and can be used as a TIN. An ATIN is only a temporary taxpayer identification number issued for a child born, and adopted, in the United States. An ATIN contains nine numbers in the same format as an SSN. An ATIN should be requested when an SSN cannot be obtained in time to file your tax return. Once the adoptive parent obtains an SSN for the adopted child, the ATIN becomes obsolete.
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