The TIN Matching system does not directly process or verify Doing Business As (DBA) names because the IRS matches only the legal name associated with the Taxpayer Identification Number (TIN) in its database. Here’s how it works:
Key Points About DBA Names in TIN Matching:
- Legal Name Priority:
- The TIN Matching system matches the TIN to the legal name that the IRS has on file for the taxpayer (individual or business).
- DBA names, which are often used for branding or trade purposes, are not included in the IRS’s TIN database for matching.
- Business TINs:
- For businesses, the name used should match the legal business name registered with the IRS, typically found on the Form SS-4 (Application for Employer Identification Number).
- Individual TINs:
- For individuals, the name used should match the name on the Social Security card associated with the Social Security Number (SSN).
- Common Error:
- Submitting a DBA name instead of the legal name will result in a mismatch, as the IRS will not recognize DBA names for TIN matching.
Best Practices to Avoid Issues:
- Verify the Legal Name:
- For businesses, use the legal name from the IRS EIN confirmation letter (CP 575 or CP 147).
- For individuals, use the exact name as it appears on their Social Security card.
- Educate Vendors or Payees:
- If you are collecting W-9 forms, clarify that the name entered in Line 1 must be the legal name. DBA names can be entered on Line 2 but are not relevant for TIN Matching.
- Check IRS Records:
- If uncertain about the legal name, contact the IRS Business and Specialty Tax Line at 800-829-4933 for clarification.
