How to Check a Taxpayer Identification Number
While running any business, you are bound to find it necessary to verify a Taxpayer Identification Number (TIN). It is required for hiring employees and paying subcontractors, and in some instances it may be required to transact business with your clientele. The government requires you to prove you've done your due diligence whether you are a tax preparer or just going to be issuing 1099s to your those you pay non-employee compensation.
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Instructions
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Visit the Internal Revenue Service website and obtain an I-9 and W-4 or 1099 form for an employee or independent contractor respectively. An I-9 verifies that the new hire is eligible to work in the United States. The W-4 establishes what should be withheld from a paycheck. A 1099 form is for independent contractors.
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Have your new hire or subcontractor completely fill out the appropriate forms.
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Request the necessary documents to verify the authenticity of the completed forms. For an employee, you will be able to use the instructions of the I-9 to collect the necessary documentation. The forms will not be required if you are dealing with the TIN of a client. The most commonly used documents are a current driver's license and a Social Security card. These are the same documents you will used for a customer using a Social Security number.
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If you are dealing with a TIN that is a FEIN (Federal Employer Identification Number) for a business, you will need different documentation. In this case you must obtain the Articles of Organization and an official document from the IRS showing the FEIN and the company's legal name.
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Regardless of whether you are verifying a Social Security number or a FEIN, you must verify that the legal name matches on all documentation provided.
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Copy all documentation provided and keep it on file for your records to prove you have done your due diligence. Most businesses stop at this point.
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If you want to take an extra measure of security, you can visit and sign up for FEIN search. Many businesses and governmental agencies use this service to verify TINs. This services charges various prices for memberships, but also offers five free trial searches. Keep in mind that all TINs are not included in the database.
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Tips & Warnings
This should not be considered legal advice. Rules for due diligence change from time to time, and you should verify these changes frequently on the IRS website.
