Frequently nonresident and resident aliens, their spouses, and dependents who cannot get an SSN apply for a TIN.
An ITIN, or Individual Taxpayer Identification Number, is a tax processing number only available for certain nonresident and resident aliens, their spouses, and dependents who cannot get a Social Security Number (SSN). It is a 9-digit number, beginning with the number “9”, formatted like an SSN.
Taking a second look at applicants who provide a TIN instead of SSN number
While there are legitimate and perfectly legal reasons to use a TIN (Taxpayer Identification Number), employers must be watchful as to why. Oftentimes, sole proprietorship businesses may use a TIN instead of the individual owner’s SSN.
If they have a valid SSN, why do they provide an ITIN instead?
Here is where it gets a little bit trickier. ITIN numbers cannot be verified to the individual’s true identity (DOB, aliases, and former addresses). In order to properly check into someone’s past, an employer must verify that a person is whom they say they are. Otherwise, you may be searching for a non-existent person with obviously, clean records. For instance, a TIN match may verify that “John Doe” has a valid ITIN issued to his name, but does not reveal his exact DOB. Thus, a criminal records search may return a “false negative” if John Doe provided a slightly different DOB. Interestingly enough, John Doe’s legal name could be Johnny Doe or Juan Doe and still get a match from the IRS TIN match at an 80% match threshold. This can also throw off a criminal background check.
Lastly, a new employee could be collecting unemployment insurance compensation using their SSN as that could very well be the reason why they are providing the employer a TIN number.
As an employer, what steps can I take if given a TIN number?
Our TIN match service does not just stop once we obtain a TIN match. We go the extra step to verify their true identity using different algorithms in order to confirm the information they provided and alert you to that effect so that you may now process a valid criminal background check.
Reporting incorrect SSN or TIN number to the IRS and/or State revenue agencies may hold you accountable for reporting W-2 or Form 1099 income to the wrong Taxpayer Identification Number.
IRS TIN/Name mismatch penalties have increased for 2018. Now $260 per mismatch, $3,218,500 maximum.
|Name||John S. Doe|
|Address||1120 No Oak Ln, Anytown, MO 89542|
TIN Matching Report
Unable to Verify Name/Address Records Associated with SSN Input
This could be due to recently issued SSN, DHS work-only Taxpayer Identification Number (TIN), minor’s status or invalid SSN input. It is also recommended to verify employment eligibility thru uscis.gov/e-verify
Our TIN Matching Service has provided these results: