TIN Matching - IRS TIN Validation

What is IRS TIN Validation?

In 2008, the US Congress passed the Housing and Economic Recovery Act. This legislation contains a new federal regulation created to help the IRS identify under reported sales.

The law requires "merchant acquiring entities" to file a Form 1099-K with the IRS (an information return) that reports year-end gross amounts of their merchants' credit, debit, gift card, and e-commerce transactions.

In order to provide the IRS with the required information, all merchant acquiring entities must collect and verify the Tax Identification Number (TIN) and associated legal business name and address for each merchant on file.

We first try to electronically match your information with the IRS database. If the data doesn't match, we will ask for supporting documentation.

Here are 2 examples of documents you could provide us to help clear up the mismatch:

  1. A screenshot of the top portion of your last Federal Tax Return.

  1. The SS4 Letter sent by IRS when you registered for a TIN.

What happens if I don't provide this information?

By law, we are required to withhold a minimum of 28% of your sales and remit this to the IRS. You are not able to get these funds back until you file your next tax return.

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