Missing and Incorrect TINs

A TIN is missing or incorrect if any of these conditions exist:

• The TIN has a blank value (and the supplier is not foreign).

• The TIN has fewer than nine digits.

• The TIN contains a nonnumeric character.

  (The system formats TINs with the appropriate hyphenation.)

The IRS requires you to take steps to obtain missing TINs. If you submit 1099s with missing TINs, the IRS encourages you to attach a letter of explanation. If you attach a letter of explanation, you will prevent unnecessary contacts from the IRS. However, the IRS will still send backup withholding notices (B notices,) or impose penalties on you for submitting 1099s with missing or incorrect TINs. If you do not have a TIN for a supplier, you must withhold tax from any payment that you make to that supplier, and report the amount withheld to the IRS.

A TIN can be incorrect for any of these reasons:

• A processing error occurred. The TIN was entered incorrectly.

• The supplier's status changed. The supplier did not report a name change to the IRS or SSA, so the name change was not recorded.

• The supplier reported an incorrect name. The payee is listed as the only owner of an account with the IRS or the SSA, but the name on the account does not match the payee's name.