TIN/TFN Input and Correction Guidelines/Tips

Additional information related to CP2100 Notices and B Notices can be found in Publication 1281 on IRS website

 Regarding:    TIN/TFN Input and Correction Guidelines/Tips

In anticipation of the CP2100 process later in the year, First Data wants to remind our clients to continue their focus on correction efforts related to payee tax information (i.e., Tax Identification Number (TIN)/Tax Filing Name (TFN) updates).

The first step to successful TIN/TFN matching is to ask the merchant to provide their tax information based on how they file their tax return, e.g. – Individual, Sole Proprietor, and Business Entity.

•       Individuals or Sole Proprietors without an EIN
•       Obtain SSN or ITIN*
•       Obtain individuals name as appears on social security card or latest tax returns
•       Do not obtain business or DBA name
•       If individual has a hyphenated last time then the (-) must be included
•       Sole Proprietors using an EIN
•       Obtain EIN 
•       Obtain individuals name as appears on social security card or latest tax returns
•       Do not obtain business or DBA name
•       If individual has a hyphenated last time then the (-) must be included
•       Business Entities
•       Business legal entity such as a corporation or partnership
•       Individual name  with abbreviations  PC (Professional Corporation), SC (Small Corporation), PA (Professional Association), PS (Professional Service), or PSC (Personal Service Corporation)
•       Obtain EIN
•       Obtain business name as appears on IRS document CP575A or latest tax returns

*An ITIN is a 9 digit 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 non-resident aliens, who are not eligible for SSNs, use ITINs.
 
Guidelines for entering TIN/TFN information
 
•       For businesses using a SSN:
•       Individual – use the individual’s name and SSN as shown on their SSN card
•       Sole Proprietor – use the owner’s name and SSN as shown on their SSN card, the business name may be entered on the second line
•       Joint Account (two or more individuals) – use the name and SSN for the actual owner of the account or, if combined funds,  the first individual on the account
 
•       For businesses using an EIN:
•       Corporation – use the corporate name and EIN as shown on their taxes, SS4 or IRS Letter 147C
•       Tax-exempt Organization (religious, charitable, educational, etc.) – use the organization’s name and EIN as shown on their taxes, SS4 or IRS Letter 147C
•       Partnership (held in the name of the business) - use the partnership’s name and EIN as shown on their taxes, SS4 or IRS Letter 147C
•       Public Entity (state or local government, school district, etc.) - use the entity’s name and EIN as shown on their taxes, SS4 or IRS Letter 147C
•       Sole Proprietor – use the owner’s name and EIN as shown on their taxes, SS4 or IRS Letter 147C, the business name may be entered on the second line.
 
Additional TIN/TFN entry tips:
•       Tax filing names containing “&” or AND, either one may result in valid match if switched
•       Review TFN for punctuation errors  like apostrophe ‘,  period ., or other character that when used or removed could make the name valid
•       Misspelling of name
•       Use of owner name versus business name or vice versa
•       Replacement of numeric value to text, “1st” versus “First” or vice versa
 
Recommended Actions:
 
Clients should review periodically invalid TIN/TFN reports, payee flag errors, and SPARK exclusion indicators to continue corrections of invalid tax information.
Additional information related to CP2100 Notices and B Notices can be found in Publication 1281 on IRS website at http://www.irs.gov/pub/irs-pdf/p1281.pdf