TIN matching pilot program.

• Author: Laffie, Lesli S.
• Position: Taxpayer identification numbers

A pilot Taxpayer Identification Number (TIN) Matching Program is scheduled for 2001, according to the IRS. The program's goal is to reduce the number of "B notices" requiring payers to contact payees for their TINs and institute backup withholding. Due to privacy laws, payers will not be able to receive a payee's identification number; instead, payers will be able to submit taxpayer names and TINs. The IRS's TIN matching system will then provide, as appropriate, any of the following four responses:

1. Taxpayer name and TIN combination match.

2. Missing TIN or nonnumeric nine-digit TIN.

3. TIN not properly issued.

4. TIN and taxpayer name combination do not match.

The pilot TIN Matching Program will include Forms 1099-INT, 1099-DIV, 1099-OID, 1099-PATR, 1099-B and 1099-MISC and will be limited to 1,000 participants. A legislative change is required to allow TIN verification for Forms W-2. The TIN matching system is designed to be a secure, automated system that will be accessible through the Internet or an extranet. Requests of 25 or fewer TIN matches will be provided interactively. Bulk, "clean-up" requests of up to 100,000 TINs will be processed in 24 hours.

When fully operational, the TIN Matching Program...