Overview
This demonstrates how to use the export and import functionality Resware in conjunction with the Internal Revenue Service’s TIN matching program. This is a free validation service available online to authorized payers and their authorized agents who submit information returns such as 1099’s. This service will verify Tax ID’s and name combinations and reduce errors in the submission of tax forms.
Note: Register for Internal Revenue Service login credentials to participate in the TIN matching program at www.irs.gov/tax-professionals/taxpayer-identification-number-tin-matching..
Version history
|
Version |
Date Resolved |
ID |
Description |
|
Pre 8.26 |
04/09/2019 |
|
Information and screenshots created in version 9.7 |
Office options
Admin/General Setup/Offices/Buyer/Seller
The following office options are not required; however, they are discussed in this article since they related to the preparation of 1099 reports.
- Auto-enable 1099 for seller: If this office option is enabled, the Needs 1099-S checkbox will be auto selected when creating a seller. This will ensure that all users will be prompted to enter seller TIN information as needed or manually disable the checkbox.
- Require post closing address when Needs 1099-S: If this office option is enabled, the post-closing address will be required for the buyer/seller when the 1099-S checkbox is enabled. This will ensure that addresses are not omitted at the time of entry, which is more difficult to locate at tax reporting time.
Internal user roles
Admin/Internal Users
The following user roles allow users functionality related to buyers/sellers that affect areas related to TIN matching.
- Admin: TIN Matching: This role allows administration of the TIN matching functionality.
- Buyer/Seller: View and Edit SSN/TIN: This role allows a user to view and edit the primary and secondary SSN/Tax ID information when adding or editing a buyer or seller on files in offices to which they have access. If this role is not enabled, the user will only see the last four digits of the SSN on the Seller 1099-S report. The TIN will always be visible. A user with the Admin: TIN Matching role right will need this role enabled to allow for updating the SSN/TIN as needed.
- Buyer/Seller: View last 4 of SSN/TIN: This role limits a user to viewing the last four digits of the primary and secondary SSN/Tax ID information when adding or editing a buyer or seller on files in offices to which they have access. The user will not be able to edit the SSN/TIN.
- Ledgers: Change Buyer/Seller Name After Receipts/Disbursements: This ledger role allows a user to change a buyer/seller name on a file even after receipts or disbursements have been made to them.
TIN matching export
Admin/TIN Matching/Export
This process will generate a report in a format that can be imported to the Internal Revenue Service’s website to verify the SSN/TIN information. All sellers whose Needs 1099-S checkbox is enabled will be included. Exact Name/SSN duplicates will be excluded.
- Click Browse to choose the location on the computer where the export file will be saved or manually enter the location in the Export to field.
- Click Export to generate the .txt file.
Once exported, each seller will be flagged as exported and be assigned the export’s TINExportID. The exported sellers will remain in a locked state until an import with the same TINExportID is run (regardless of user roles). The IRS TIN matching service only accepts .txt files, so avoid modifying the export file’s extension. Sellers whose names are greater than forty characters will be truncated at the fortieth character in the export file, including non-individual names.
Note: If the report is canceled during the export process, all sellers exported up to the point when the process was canceled are still exported. Any remaining eligible sellers that did not export remain unaffected and will be considered in a new export with a new TINExportID.
Seller panel TIN matching indicators include:
- A red lock icon indicates (see below screenshot) at least one seller, Primary or Secondary, is locked and the Name and SSN/Tax ID fields cannot be edited.
- Fields included in the TIN match are disabled: This is to maintain accuracy of future imports.
Individual with a primary SSN/TIN:
Individual with a primary and secondary SSN/TIN:
Partnership:
Partnership with name for 1099, if different:
IRS TIN matching service
- Log into the IRS website with the username and password received from the IRS.
- Follow the steps outlined on the website.
TIN matching import
Admin/TIN Matching/Import
This process will import the .txt file produced from the IRS TIN matching service for the purpose of flagging sellers with either a positive match or a negative match against IRS’s TIN matching database.
Note: If the report is canceled during the import process, all sellers imported up to the point when the process was cancelled are still imported. Any remaining sellers that did not import remain in an Exported For TIN Matching state and remain locked for editing on the buyer/seller panel. To continue importing any remaining sellers, re-import the same import file until all respective sellers have been imported.
- Click Browse to choose the location on the computer where the import file is located or manually enter the location of the TIN file to import field.
- Click Import to generate the .txt file.
Seller panel TIN Matching indicators include:
|
User role variances | |||
| Admin: TIN Match and Buyer/Seller View and Edit SSN/TIN enabled | Only Buyer/Seller View and Edit SSN/TIN enabled | Only Buyer/Seller View Last 4 of SSN enabled | |
|
Positive TIN Match |
Editing name and SSN/TIN possible |
Editing restricted |
Editing restricted |
|
Negative TIN Match |
Red font displayed Editing allowed |
Red font displayed Editing allowed |
Red font displayed Editing allowed on name only, SSN/Tax ID restricted |
and Green font displayed
with name and SSN/Tax ID greyed out
with name and SSN/Tax ID greyed out- A user with the Admin: TIN Matching and the Buyer/Seller View and Edit SSN/TIN roles enabled will see the seller information displayed as follows:
- A green font indicates the seller received a positive TIN match. As long as the name is not edited, this lock and green font will remain and will not be eligible for another TIN matching export.
- A red font indicates the seller received a negative TIN match. The name and SSN/Tax ID will not be locked and must be updated before the system will flag this as eligible for another TIN matching export.
- When a name or SSN/Tax ID is edited and the panel is saved, the font will return to black (and the lock icon will be removed if applicable). This name will now be eligible for another TIN matching export.
- A user with the Admin: TIN Matching role disabled will see the seller information displayed as follows:
- The seller name and SSN/Tax ID will be disabled, which indicates a positive TIN match.
- A red font indicates the seller received a negative TIN match. The name and/or SSN/Tax ID must be updated before the system will flag this as eligible for another TIN matching export. To allow a user to update the SSN/Tax field, the Buyer/Seller: View and Edit SSN/TIN role must be enabled, otherwise they will only be able to update the name fields.
Individual with primary SSN/TIN and a positive TIN match:
Individual with primary SSN/TIN and a negative TIN match:
Individual with primary SSN/TIN with a positive TIN match and secondary SSN/TIN with a negative TIN match:
Partnership with positive TIN match:
Partnership with a negative TIN match:
TIN matching response codes
The IRS compares TIN types, the TIN number, and the taxpayer’s full name or business name. The TIN types represented in the TIN export report are 1, to represent an employer identification number (EIN); 2, representing a social security number (SSN); or 3, representing an unknown TIN type. The IRS attaches response codes in the import file to each seller that returns either a positive match or a negative match. The following chart gives an explanation of each response code.
|
Code |
Match type |
Notes |
|
0 |
Positive |
Name/TIN combination matches IRS records |
|
1 |
Negative |
Missing TIN or not a 9-digit TIN |
|
2 |
Negative |
TIN not currently issued |
|
3 |
Negative |
Name/TIN combination do not match IRS records |
|
4 |
Negative |
Invalid match request |
|
5 |
Positive or Negative (TBD) |
Duplicate match request** |
|
6 |
Positive |
Matched on SSN when TIN type is 3, unknown, and a matching TIN and Name control is found only on the NAP DM1 database |
|
7 |
Positive |
Matched on EIN with TIN type is 3, unknown, and a matching TIN and name control is found only on the EIN/NC database. |
|
8 |
Positive |
Matched on EIN and SSN when TIN type is 3, unknown, and matching TIN and name control is found only on both EIN/CC and NAP/DM1 databases. |
**Duplicate sellers will be matched up with their existing counterpart duplicate’s TIN matching status. Example: John Smith with SSN 123-45-6789 receives a response code 5 from the IRS TIN matching service. Resware will search the buyer/seller database for any “John Smith” with SSN “123-45-6789” that has already been imported. The John Smith being imported will then have his TINExportValid flag set equal to the existing John Smith’s TINExportValid value, which indicates whether the seller is a positive or negative match. If a duplicate seller is not found, the seller being imported will be treated as a negative match.
External trigger available
Actions/Action Groups
An external trigger, TIN Matching: Import – Negative Match, can be added in the workflow to alert the user when a negative match has been received on a file. In the following example, the external trigger adds an action that creates a pop-up note each time the file is opened until the action is completed. For further information on actions, see additional articles available on the customer portal.
