Reasonable Cause 

Regulations & 

Requirements for 

Missing and Incorrect 

Name/TINs on 

Information Returns

(Including instructions for reading CD/DVDs)

Publication 1586 (Rev. 7-2023) Catalog Number 13597U Department of the Treasury Internal Revenue Service www.irs.gov
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Table of Contents

I. INTRODUCTION ...................................................................................................................... 1

Purpose .................................................................................................................................... 1

Applicable Regulations ............................................................................................................. 1

What’s New? ............................................................................................................................. 1

II. PENALTY FOR MISSING TINS AND INCORRECT NAME/TIN COMBINATIONS ................. 2

III. REASONABLE CAUSE............................................................................................................ 3

IV. NOTICE 972CG, NOTICE OF PROPOSED CIVIL PENALTY..................................................4

Proposed Penalty Notice .......................................................................................................... 4

Federal Agencies: .....................................................................................................................4

Contents of Notice 972CG Include ...........................................................................................4

How to Answer Notice 972CG.................................................................................................. 5

V. MANNER OF TIN SOLICITATIONS......................................................................................... 6

Initial Solicitations by Electronic Means ...................................................................... 6

Annual Solicitations by Mail........................................................................................................7

Annual Solicitations by Telephone............................................................................................ 7

VI. ACTIONS FOR MISSING TINS AND INCORRECT NAME/TIN COMBINATIONS .................8

Initial and Annual Solicitations - General Rules ........................................................................ 9

Missing TINs......................................................................................................................... 10

Incorrect TIN............................................................................................................................. 11

Exceptions to the Requirement for Two Annual Solicitations .................................................... 12

Comparison of IRS Payee Listing to Your Records ................................................................... 13

VII. FORM W-2 SSN SOLICITATIONS...........................................................................................14

VIII. INFORMATION RETURN PENALTY RATES .......................................................................... 14
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IX. IRS MATCHING PROCESS AND NAME CONTROLS............................................................17

Individuals.................................................................................................................................17

Sole Proprietors (not including Single-Member LLCs)..............................................................18

Partnerships and Single-Member LLCs....................................................................................19

Corporations ............................................................................................................20

Estates, Trusts, and Fiduciaries ................................................................................................20

Other Organizations..................................................................................................................21

X. WHERE TO CALL FOR HELP .................................................................................................22

XI. FORM 10301, CD ENCRYPTION CODE AUTHORIZATION FOR CP2100/972CG/972F

NOTICES..................................................................................................................................22

XII. INSTRUCTIONS FOR READING CD/DVDs ............................................................................22

Information about the CD/DVD.................................................................................................22

Record Layouts - CD/DVD........................................................................................................25
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I. INTRODUCTION

Purpose

This publication:

• Provides general information needed to avoid penalties under Internal Revenue Code (IRC) 

6721 through IRC 6723 for information return documents that are filed or furnished with 

missing or incorrect taxpayer identification numbers (TINs).

• Describes the actions that must be taken, or should have been taken, to solicit (request) a TIN.

• Explains the requirements for establishing reasonable cause.

Applicable Regulations

Treasury Regulations affecting all persons who may be subject to penalty for failure to comply with 

the information reporting requirements defined under IRC 6724(d) include, but are not limited to:

• 301.6721-1, Failure to file correct information returns

• 301.6722-1, Failure to furnish correct payee statements

• 301.6723-1, Failure to comply with other information reporting requirements

• 301.6724-1, Reasonable cause

Other regulations that apply to specific forms may supersede all or parts of these regulations. 

Examples of such regulations include, but are not limited to:

• 1.6045-4, Information reporting on real estate transactions with dates of closing on or after 

January 1, 1991 (Form 1099-S, Proceeds From Real Estate Transactions)

• 1.6050H-2, Time, form, and manner of reporting interest received on qualified mortgage (Form 

1098, Mortgage Interest Statement)

• 1.6050S-1, Information reporting for qualified tuition and related expenses (Form 1098-T, 

Tuition Statement)

• 1.6050S-3, Information reporting for payments of interest on qualified education loans (Form 

1098-E, Student Loan Interest Statement)

• 1.6055-1, Information reporting for minimum essential coverage (Form 1095-B, Health 

Coverage)

• 301.6056-1, Rules relating to reporting by applicable large employers on health insurance 

coverage offered under employer-sponsored plans (Form 1095-C, Employer-Provided Health 

Insurance Offer and Coverage)

What’s New?

• Updated penalty rate tables in Part VIII to reflect new rates, including annual inflation 

adjustments, for information returns required to be filed on or after January 1, 2024. Also 

included reference to Revenue Procedure for added year’s rates.

• Final Treasury Regulations relating to Form 1095-B and Form 1095-C were recently 

published. 1.6055-1, Information reporting for minimum essential coverage became effective 

on December 15, 2022, and 301.6056-1, Rules relating to reporting by applicable large 

employers on health insurance coverage offered under employer-sponsored plans, was 

effective March 8, 2023.
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II. PENALTY FOR MISSING TINS AND INCORRECT NAME/TIN COMBINATIONS

IRC 6721, Failure to file correct information returns, imposes a penalty per return for each of the 

following failures related to information returns defined under IRC 6724(d)(1):

• Failure to file,

• Filed with a missing/incorrect TIN (or other missing or incorrect information),

• Filed untimely,

• Filed on paper when electronic filing was required (incorrect media),

• Filed in an incorrect format, (unprocessable), or

• Any combination of the above.

Only one penalty is imposed with respect to a single information return, even if there is more than 

one failure with respect to the return. If there are multiple failures on the same information return, 

only the highest penalty amount will be imposed under IRC 6721. For example, if a Form 1099-B 

was filed 30-days late ($50 penalty for tax year 2021) with an incorrect TIN that was not corrected 

by August 1st of the filing year ($280 penalty for tax year 2021), then only a $280 penalty will be 

imposed. If reasonable cause relief is accepted for the incorrect TIN and the TIN penalty is 

waived, the late filing penalty ($50) may still apply and be imposed if reasonable cause relief for 

this failure is not granted.

Note that the penalty under IRC 6722, Failure to furnish correct payee statements, may be imposed 

in addition to the IRC 6721 penalty if, for example, a return was filed late, and the payee statement 

was furnished late. Notice 972CG only proposes a penalty under IRC 6721.

The maximum penalty that may be imposed for one person for all such failures in a calendar year 

depends on the year in which the return is due. See Section VIII for details on information return 

penalty rates.

➜ Note: There are no maximum penalty limitations for failures that are due to intentional 

disregard.

Refer to Part VIII for the applicable penalty rates and maximum penalty amounts depending 

on when the return is due. These penalty rates and maximum penalty amounts are subject to 

inflation increases as required by IRC 6721(f) for returns due on or after January 1, 2016.

De minimis rule for corrections:

Even though the filer cannot show reasonable cause, the penalty for failure to file correct information 

returns will not apply to a certain number of returns if the filer:

• Filed those information returns timely,

• Either failed to include all the information required on a return or included incorrect 

information, and

• Filed corrections by August 1st of the filing year

If the filer meets all these conditions, the penalty for filing incorrect returns will not apply to the 

greater of 10 information returns or 1⁄2 of 1% (0.005) of the total number of information returns the 

filer is required to file for the calendar year.
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➜ Note: De minimis rule does not apply to returns that are not due on February 28 or March 

15, for example Form 8300. However, returns that are not due on February 28 or 

March 15 are included in the total number of all information returns that the filer is 

required to file during a year for purpose of calculating the number of returns subject 

to the de minimis rule. See Treas. Reg. 301.6721-1(d)(4).

Safe harbor exceptions for de minimis dollar amount errors:

Under the de minimis error safe harbor exceptions, the filer is not required to correct an error on an 

information return or payee statement to avoid penalties for failure to file a correct information return 

or a correct payee statement if the error relates to any incorrect dollar amount and is no more than

$100 ($25 for tax withheld). This safe harbor applies to any individual error within the de minimis 

amounts.

IRC 6721(c)(3)(B) and 6722(c)(3)(B) allow payees to elect that the de minimis error safe harbor 

exceptions not apply and thereby request that the filer provide them with corrected statements. If 

the payee makes this election, the penalties for incorrect information will continue to apply to the 

filer and the filer must provide a corrected information return and payee statement as necessary. See 

Notice 2017-09, 2017-4 I.R.B. 542.

III. REASONABLE CAUSE

To show that the failure to include a correct TIN was due to reasonable cause and not willful neglect, 

filers must establish both that they acted in a responsible manner both before and after the failure 

occurred and that:

• There were significant mitigating factors with respect to the failure (for example, an established 

history of filing information returns with correct TINs), or

• The failure was due to events beyond the filer’s control (for example, actions of the payee or 

any other person).

Except as otherwise stated in this publication, acting in a responsible manner for missing and 

incorrect TINs generally includes making an initial solicitation (request) for the payee’s name and TIN 

and, if required, annual solicitations.

Mitigating factors or events beyond the filer’s control alone are not sufficient to establish reasonable 

cause. Upon receipt of the newly provided TIN, it must be used on any future information returns 

filed. Refer to Treas. Reg. 301.6724-1 for all reasonable cause guidelines.
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➜ Note: Employers may use the Social Security Administration’s (SSA) Social Security Number

(SSN) verification systems to verify the employee’s name and SSN, but there is no 

Internal Revenue Service (IRS) requirement to do so. The option is useful for 

employers to identify potential discrepancies and correct SSNs before receiving a 

penalty notice. For more information, go to www.socialsecurity.gov/employer.

TIN Matching is also available as part of the Internet based pre-filing e-services 

that allows “authorized payers of payments subject to backup withholding” the 

opportunity to match Form 1099 payee information against IRS records prior to 

filing information returns. For more information, go to https://www.irs.gov/taxprofessionals/taxpayer-identification- number-tin-matching.

IV. NOTICE 972CG, NOTICE OF PROPOSED CIVIL PENALTY

Proposed Penalty Notice

Notice 972CG proposes an IRC 6721(a) penalty for information returns that were filed late, filed 

on incorrect media, filed with a missing or incorrect TIN, or a combination of these failures.

For information returns filed with missing or incorrect TINs, Notice 972CG includes a list of the 

information returns filed with missing or incorrect name/TIN combinations.

Filers should compare this list with their records to determine if:

• Appropriate action was taken in the year for which the penalty is being proposed (see Part VI) 

to meet the requirements for establishing reasonable cause.

• An annual solicitation must be made in the current year to avoid penalties in future years.

➜ Note: Filers must provide a separate written explanation to substantiate a reasonable cause 

waiver for proposed penalties related to late filing and/or failure to electronically file 

information returns.

Federal Agencies:

Penalties and interest are not asserted against federal agencies per Policy Statement 20-2. In lieu

of Notice 972CG, federal agencies receive Notice 972F with a listing of the information returns filed 

with missing or incorrect TINs so they can take appropriate actions to solicit for the correct TINs for 

future filings.

Contents of Notice 972F for Federal Agencies:

• A list of the information returns filed with missing or incorrect name/TIN combinations.

Although federal agencies are not legally required to respond to the Notice 972F, they should be sure 

to abide by the same solicitation rules to obtain a correct TIN and backup withhold when required.

Contents of Notice 972CG Include

• An explanation of the proposed penalty,

• An explanation of how to respond to the notice,
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• A record of each submission considered in the total penalty, including the form type, date 

received (if not timely filed), whether the returns were original or corrected, the transmitter 

control code (for electronic filers), and the type of penalty that applies (or penalties that apply) 

such as late, incorrect TINs, etc.,

• A list of the information returns filed with missing or incorrect name/TIN combinations so the 

filer can reconcile with the filer’s records,

• A summary of the proposed penalty, which takes into consideration all penalties proposed, 

and the maximum penalty amount that can be assessed under IRC 6721(a),

• A response page, and

• A payment/correspondence slip.

How to Answer Notice 972CG

• The notice must be answered within 45 calendar days (60 calendar days for foreign filers) 

from the notice date.

• If more time is needed, submit a written request to the address listed on the notice before the 

end of the 45 or 60- day period.

• Send in the portion of the payment/correspondence slip that is appropriate to the filer’s 

response (i.e., fully agreeing, partially agreeing, or totally disagreeing with the proposed 

penalty). Sign in the space provided and submit payment if the filer fully or partially agrees to 

the proposed penalty.

• In seeking a waiver of the proposed penalty, the filer must submit a written statement that:

1. States the specific provision under which the waiver is being requested (for example: 

event beyond filer’s control), see Treas. Reg. 301.6724-1(b) and (c).

2. Sets forth all the facts alleged as the basis for reasonable cause and that the filer acted

in a responsible manner (for example: specifies that the applicable solicitation (initial, first 

annual, second annual, etc.) for each missing/ incorrect TIN took place in the time and 

manner required by regulations. See part VI for more information on TIN solicitation rules, 

as well as Treas. Reg. 301.6724-1(e) & (f)).

3. Contains the signature of person required to file the return.

4. Contains the declaration that it is made under penalties of perjury.

• Do not submit copies of the TIN solicitations unless requested.

• The IRS may issue Letter 1948C to ask for additional explanation or information to support

the request to waive the proposed penalty. If the filer doesn’t respond by the time indicated in 

the Letter 1948C, the IRS will deny the waiver request and assess the proposed penalty.

• If reasonable cause is established, IRS will issue Closing Letter 6304C stating that the 

explanation given was accepted and the applicable penalty will not be assessed.

• If the filer’s written statement does not establish reasonable cause, or only partially 

establishes reasonable cause, a penalty will be assessed. The IRS will send Letter 854C 

explaining the reason for the denial, including the filer’s appeal rights. The assessment will 

generate a balance due notice (CP15 or CP215) including appeal rights.

• No response to the Notice 972CG within 45 calendar days (60 calendar days for foreign filers) 

will result in assessment of the full amount of the proposed penalty and generate a balance 

due notice (CP15 or CP215) including appeal rights.
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➜ Note: Interest accrues on the balance due from the date of the CP15/CP215 Notice (unless 

the penalty is paid within a specified number of days stated on the CP15/CP215 

Notice) and continues to accrue until the balance is fully paid. Interest charged on any 

penalty amount that is later decreased will be reduced accordingly.

V. MANNER OF TIN SOLICITATIONS

Payers are required to solicit the TINs of payees to meet reasonable cause criteria as acting in a 

responsible manner to avoid information reporting penalties. Generally, a solicitation is a request 

made by a payer to a payee to furnish a correct TIN. An initial solicitation for a payee’s correct 

TIN must be made at the time an account is opened (or a relationship initiated) unless the payer 

already has the payee’s TIN and uses that TIN for all transactions with the payee. The solicitations 

may be made by oral or written request or by electronic communications, depending on how the

account is opened or relationship established. Where a payee’s TIN is missing or incorrect after the 

initial solicitation, the payer generally will need to conduct annual solicitations for a correct TIN to 

obtain a waiver for reasonable cause. See Treas. Reg. 301.6724-1(e)(1), (f)(1). For purposes of these 

procedures, a requester is anyone required to file an information return. A payee is anyone required 

to provide a TIN to the requester.

A payer that receives backup withholding notices reporting missing/incorrect payee TINs (CP2100 or 

CP2100A) must make solicitations (sending “B notices” to payees) pursuant to the backup 

withholding rules (Treas. Reg. 31.3406(d)-5). If the payer also receives penalty notices 972CG for

missing/incorrect TINs under IRC 6721 for the same payees either during the same calendar year or 

with respect to information returns filed for the same tax year, and the payer has sent the required 

B notices to the payees, the payer is not required to also make annual solicitations for correct TINs 

pursuant to IRC 6724. See Publication 1281, Backup Withholding on Missing and Incorrect Name/ 

TINs (including Instructions for Reading Tape Cartridges and CD/DVD Formats).

Initial Solicitations by Electronic Means

Requesters may establish an electronic system for payees to receive and respond to initial TIN 

solicitations. This also includes responding to and receiving solicitations by fax. Generally, the 

electronic system must:

1. Ensure the information received is the information sent and document all occasions of user 

access that result in the submission.

2. Be reasonably certain the person accessing the system and submitting the form is the person 

identified on the Form W-4, W-9 or W-9S.

3. Provide the same information as required by the paper Form W-4, W-9 or W-9S.

4. Require as the final entry in the submission to the requester an electronic signature by the 

payee whose name is on the Form W-4, W-9 or W-9S that authenticates and verifies the 

submission.

5. Be able to supply a hard copy of the electronic Form W-4, W-9 or W-9S if requested by the 

IRS.

6. For Forms W-4, the signature must be under penalty of perjury. The electronic system 

must inform the employee that he or she must make a declaration contained in the perjury 

statement and that the declaration is made by signing the Form W-4. See Treas. Reg. 

31.3402(f)(5)-1(c)(2)(iii) for more information.

7. For Forms W-9 and W-9S that are required to be signed, the electronic system must provide 
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for an electronic signature and a penalty of perjury statement. See Instructions for the 

Requester of Form W-9 for more information.

➜ Note: While the filer may establish an electronic system to receive Forms W-4 from the filer’s 

employees, the filer should make a paper option reasonably available upon request to any 

employee who has a serious objection to using the electronic system or whose access to or 

ability to use the system may be limited (for example, as a result of a disability).

Generally, annual solicitations may be made in one of the following ways:

Annual Solicitations by Mail

Annual solicitations by mail must include three items to the payee:

1. A letter stating that the payee must provide an accurate TIN and that failure to do so may 

result in a $50 penalty under IRC 6723.

2. Form W-9, Request for Taxpayer Identification Number and Certification, as applicable (or 

a substitute document that is substantially similar to Form W-9). See Publication 1281 for 

detailed instructions for Form W-9.

3. A return envelope, which may be (but is not required to be) postage prepaid.

If the annual solicitation is for a missing or incorrect name/TIN required to be reported on Form

1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance 

Contracts, etc., then Form W-4P, Withholding Certificate for Periodic Pension or Annuity Payment or 

Form W-4R, Withholding Certificate for Nonperiodic Payments and Eligible Rollover Distributions, 

may be included along with Form W-9.

If the annual solicitation is for a missing or incorrect Social Security Number (SSN) required to 

be reported on Form W-2, Wage and Tax Statement, then Form W-4, Employee’s Withholding 

Certificate, may be used.

If the annual solicitation is for a missing or incorrect SSN required to be reported on Form 1098-E, 

Student Loan Interest Statement, or Form 1098-T, Tuition Statement, then Form W-9S, Request for 

Student’s or Borrower’s Taxpayer Identification Number and Certification, may be used.

Annual Solicitations by Telephone

In general, an annual solicitation may be made by telephone if the solicitation procedure is designed 

and carried out in a manner that is conducive to obtaining the payee’s TIN. However, telephone 

solicitations do not apply for missing or incorrect TINs on certain forms such as Form 1098-E and 

Form 1098-T. A telephone solicitation may be conducted by:

1. Calling each payee with a missing or incorrect name/TIN combination and speaking to an 

adult member of the household, or to an officer of the business or organization.

2. Requesting the payee’s TIN.

3. Informing the payee of the $50 penalty under IRC 6723 if the TIN is not provided.

4. Maintaining contemporaneous records showing that the solicitation was properly made.

5. Providing the records to the IRS, if requested.

➜ Note: An annual solicitation is not required to be made for a year if no payments were made 

to the account for such year or if no information return is required to be filed for the 

account for the year.
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VI. ACTIONS FOR MISSING TINS AND INCORRECT NAME/TIN COMBINATIONS

TINs can be an SSN, an Employer Identification Number (EIN), an Individual Taxpayer Identification 

Number (ITIN), or an Adoption Taxpayer Identification Number (ATIN). SSA assigns SSNs. IRS assigns 

EINs, ITINs, and ATINs.

If a TIN is not provided or is obviously incorrect, it is considered missing. TINs lacking nine numerical 

digits or containing alpha characters are considered obviously incorrect. A name/TIN combination is 

incorrect when it does not match or cannot be found on IRS files that contain EINs, SSNs, ATINs, and 

ITINs.
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Initial and Annual Solicitations - General Rules

Missing TINs Incorrect TINs

Initial Solicitation • Must be made at the time 

an account is opened or

relationship established, unless 

the payer already has the 

payee’s TIN and uses that TIN 

for all accounts of the payee.

• If a TIN is not received as a 

result of an initial solicitation, 

the filer is required to make up 

to two annual solicitations until 

a TIN is obtained.

• Must be made at the time an 

account is opened or relationship 

established unless the payer 

already has the payee’s TIN and 

uses that TIN for all accounts of 

the payee.

• No additional solicitation is 

required after the filer receives 

the TIN unless the IRS, or broker, 

notifies the filer that the TIN is 

incorrect.

First Annual 

Solicitation

• Must be made if a TIN is not 

received as a result of an initial 

solicitation.

• Must be made on or before 

December 31 of the year in 

which the account is opened

or relationship established (for

accounts opened or relationship 

established before December)

or January 31 of the following 

year (for accounts opened or 

relationship established in the 

preceding December) (“annual 

solicitation period”).

• Must be made if filer has been 

notified of an incorrect TIN, 

whether by a broker or by the IRS 

(in a backup withholding notice 

(CP2100/ CP2100A), or penalty 

notice (Notice 972CG)).

• If notified by penalty notice, the 

annual solicitation must be made 

on or before December 31 of the 

year in which the filer is notified

or by January 31 of the following 

year if notified in the preceding 

December. If notified by backup 

withholding notice, solicitations 

must be made pursuant to the 

rules in IRC 3406. See Pub. 1281.

• If a backup withholding notice 

is received related to the same 

payee in the same year as the 

penalty notice, or related to an 

information return for the same 

tax year, and the filer sent the

required B notice under IRC 3406, 

an additional solicitation is not 

needed under IRC 6724.

Second Annual 

Solicitation

• Must be made if a TIN is not 

received as a result of the first 

annual solicitation.

• Must be made after the 

expiration of the annual 

solicitation period and on or 

before December 31 of the 

year immediately succeeding 

the calendar year in which 

the account is opened or 

relationship established.

• Must be made if filer is notified in 

any year following the year of the 

first annual solicitation that the 

account of a payee contains an 

incorrect TIN.

• Must be made on or before 

December 31 of the year in which 

the filer is notified of an incorrect 

TIN.
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➜ Reminder: To claim reasonable cause based on appropriately conducting the required 

solicitation, the solicitation that took place must be for the tax year that the 

penalty is being proposed. Example: A filer appropriately made the initial 

solicitation during 2021 and included the TIN provided by the payee on the 2021 

information return. In 2023, the IRS sent a Notice 972CG to the filer proposing a 

penalty for filing the 2021 information return with an incorrect TIN. The penalty 

generally would be waived because the filer could show it acted in a responsible 

manner for 2021. The filer made the first annual TIN solicitation in 2023 after 

having been notified by the IRS and filed the 2023 information return using a

newly provided TIN from the payee. The filer can show they acted in a responsible 

manner for 2023 if another TIN penalty is proposed for 2023 in a future year.

Missing TINs

Special Missing TIN solicitation rules:

The following requirements apply to payee accounts with missing TINs for payments of designated 

distributions reported on Forms 1099-R, Distributions From Pensions, Annuities, Retirement or 

Profit-Sharing Plans, IRAs, Insurance Contracts, etc.:

1. Complete an initial solicitation.

2. Complete a first annual solicitation if a TIN is not received as a result of the initial solicitation, 

as General Rules above described.

3. Complete a second annual solicitation if a TIN is not received as a result of the first annual 

solicitation. See General Rules above for the time frame for the second annual solicitation.

4. Withhold from the taxable portion of any payment that is a designated distribution and is 

subject to withholding if a response is not received as a result of the initial solicitation. The 

rate of withholding depends upon the type of payment made.

Reporting entities filing Form 1095-B, Health Coverage will not be subject to penalties for failure to 

report a TIN if date of birth is provided when a TIN is not available, see Treas. Reg. 1.6055-1(e)

effective December 15, 2022, or they comply with the requirements of Treas. Reg. 301.6724-1(e).

➜ Note: TIN solicitations made to the responsible individual for a policy or plan are treated as 

TIN solicitations of every covered individual on the policy.

Additionally, a reporting entity is not required to solicit a TIN from an individual whose coverage is 

terminated.

➜ Reminder: If a TIN is received from the payee, include it on any future information returns 

filed for that payee. A correction for a return with a missing TIN is not required to 

be filed unless also correcting a money amount. However, an employer should file 

a Form W-2c, Corrected Wage and Tax Statement, even if the employer is only 

filing Form W-2c to report an employee’s SSN.
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Incorrect TINs

Special Incorrect TIN Solicitation Rules:

A filer of the information return required under Treas. Reg. 1.6055-1 may receive an error message 

from the IRS indicating that a TIN and name provided on the return do not match IRS records.

An error message is neither a Notice 972CG nor a requirement that the filer must solicit a TIN in 

response to the error message.

The following requirements apply to payee accounts with incorrect TINs for payments of designated 

distributions reported on Forms 1099-R, Distributions From Pensions, Annuities, Retirement or

Profit-Sharing Plans, IRAs, Insurance Contracts, etc. For payee accounts with incorrect TINs:

1. Complete an initial solicitation, as previously described.

2. Complete a first annual solicitation within 30 business days from the date on which the Notice 

972CG is received.

3. Continue to treat as valid any withholding election the payee previously made on the originally 

completed Form W- 4P, Withholding Certificate for Pension or Annuity Payments (or a 

substitute form), if the payee responds to the first annual solicitation within 45 calendar days 

confirming that the name/TIN combination is correct.

4. Disregard any existing withholding election based on the prior name/TIN combination if

the payee responds to the first annual solicitation within 45 calendar days and furnishes a

different name/TIN combination. In order to notify the payer regarding the amount, if any, of 

income tax to be withheld from future designated distributions, the payee must submit a new 

withholding election by completing Form W-4P, Form W-4R or a substitute form. This new 

withholding election will be effective on the date provided in the sample notice in Treas. Reg. 

35.3405-1T, Q&A D-21, i.e., no later than the January 1, May 1, July 1, or October 1 after

it is received, provided that it is received at least 30 days before that date. Withhold from 

any periodic payments made before receiving the new withholding election using the wage 

withholding rate for a married individual claiming three withholding allowances.

5. Withhold from any subsequent payments that are designated distributions subject to 

withholding if the payee does not respond to the first annual solicitation within 45 calendar 

days. Alternatively, upon receipt of a Notice 972CG notifying the payer of incorrect name/

TIN combinations, disregard any prior withholding election made by the payees whose name/ 

TIN combinations are identified as incorrect in the Notice 972CG. In that event, the payer 

should consider these payees as having no withholding election in effect until receipt of new 

withholding elections on Form W-4P (or substitute form).

6. Complete a second annual solicitation within the same time frame as required for the first 

annual solicitation when notified of an incorrect name/TIN combination in any calendar year 

following the first notification.
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Reporting entities filing Form 1095-B, Health Coverage, or Form 1095-C, Employer-Provided Health

Insurance Offer and Coverage, will not be subject to penalties for the inclusion of an incorrect TIN if 

they comply with the requirements of Treas. Reg. 301.6724-1(f).

➜ Note: TIN solicitations made to the responsible individual for a policy or plan are treated as 

TIN solicitations of every covered individual on the policy.

Additionally, a reporting entity is not required to solicit a TIN from an individual whose coverage is 

terminated.

➜ Reminder: If a corrected TIN is received from the payee, include it on any future information 

return filed for that payee. A correction for a return with an incorrect TIN is not 

required unless also correcting a money amount. However, an employer should

file a Form W-2c, Corrected Wage and Tax Statement, even if the employer is only 

filing Form W-2c to correct an employee’s SSN.

In addition to the forms referenced in Part V, the following is a list of other forms commonly used for 

annual solicitations:

• Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax 

Withholding and Reporting (Individuals), or a substitute, to solicit the TIN for a nonresident 

alien, foreign entity, or exempt foreign person not subject to certain U.S. information return 

reporting or backup withholding

• Form W-8ECI, Certificate of Foreign Person’s Claim that Income is Effectively Connected With 

the Conduct of a Trade or Business in the United States

• Form W-8EXP, Certificate of Foreign Government or Other Foreign Organization for United 

States Tax Withholding and Reporting

• Form W-8IMY, Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain

U.S. Branches for United States Tax Withholding and Reporting

Exceptions to the Requirement for Two Annual Solicitations

In most cases, following the preceding rules will meet the requirements for acting in a responsible 

manner for reasonable cause for a penalty related to missing/incorrect TINs. However, there are 

exceptions to the requirement for two annual solicitations:

1. For Form 1098, Mortgage Interest Statement, a solicitation must be made annually until 

receipt of the TIN of the payee of record.

2. For Form 1099-S, Proceeds from Real Estate Transactions, an initial solicitation must be 

completed by the due date of the related real estate closing. No additional solicitation is 

required.

3. For Form 1098-E, Student Loan Interest Statement, a solicitation must be made each year 

during which any person engaged in a trade or business that receives from any payer interest 

payments that aggregate $600 or more for any calendar year on one or more qualified 

education loans.
13

4. For Form 1098-T, Tuition Statement, a solicitation must be made each year during which the 

institution or insurer receives payments for qualified tuition and related expenses or makes 

reimbursements, refunds, or reductions of such amounts with respect to the individual. 

However, educational institutions that fail to include the TIN of a student on Form 1098-T

will not be subject to penalties under IRC 6721 and IRC 6722 if they certify, under penalty

of perjury, as required by Form 1098-T, that they have complied with the requirements for 

obtaining the student’s TIN.

5. If an account is closed in the same year in which a penalty notice is received for that account, 

do the required solicitation if reportable payments were paid to the account in that year, or if 

otherwise required to file a return for that account for that year.

6. If a backup withholding notice (CP2100/CP2100A) is received for an incorrect payee name 

and/or TIN, the payer must follow the backup withholding rules under IRC 3406 for sending 

B notices to the payee. If the payer also receives a penalty notice for an incorrect TIN, for the

same payee, either during the same calendar year or for information returns filed for the same 

year, and the payer has sent the required B notices under the backup withholding rules, the 

payer is not required to also make annual solicitations for correct TINs pursuant to IRC 6724.

See Publication 1281 for more information related to CP2100/CP2100A.

7. If the filer fails to make one or more of the required solicitations, the filer may make two 

consecutive annual solicitations in subsequent years (“make-up solicitations”).

Comparison of IRS Payee Listing to Your Records

1. Compare the listing of incorrect TINs with existing records to determine if the name/ TIN 

combinations agree or disagree with those records.

2. If the name/TIN combination on the listing agrees with the records, do the required solicitation.

3. If the name/TIN combination on the listing disagrees with the records, a solicitation is not 

required. Determine if:

a. An error in the name/TIN combination was made when filing the information return. If so, 

include the correct name/TIN combination on any future information returns filed. File a 

Form W-2c, Corrected Wage and Tax Statement, even if the employer is only filing Form 

W-2c to correct an employee’s SSN.

b. The name/TIN combination was updated in the records after the information return was 

filed. If it was, include it on any future returns and file a Form W-2c even if only filing Form 

W-2c to correct an employee’s SSN.

c. The information was incorrectly read by IRS during processing. If so, notate on the 

records and take no further action.

➜ Reminder: A filer required to report federal tax withholding on Form 945 is required to use the 

same EIN when the associated information returns are filed.
14

VII.FORM W-2 SSN SOLICITATIONS

In general, the solicitation rules with respect to missing or incorrect TINs on Form W-2 are the same 

as discussed in sections V and VI. An employer must make an initial solicitation for the employee’s 

SSN at the time the employee begins work. The initial solicitation of the employee’s SSN may be 

made in person, by oral request, or by written request. The SSN may also be requested through 

other communications, by mail, telephone, or electronic means. The employer may rely in good 

faith on the number provided by the employee and use it when filling out the employee’s Form W-2.

Employees are required to complete Form I-9, Employment Eligibility Verification, to establish that 

they are legally eligible to work in the U.S.

An employer has an obligation to ask for Form W-4 from a new employee. Under IRC 3402(f)(2)(A), 

on commencement of employment, an employee must provide a signed Form W-4 (or a substitute 

form) stating the number of withholding exemptions claimed by the employee.

Since the employee is required to furnish Form W-4 to the employer on commencement of 

employment, Form W-4 may be used as the initial solicitation of the employee’s SSN. An employer 

who retains the Form W-4 in its records will be able to document that an initial solicitation of a TIN 

was made, verifying that it acted in a responsible manner.

Employers may use the SSA’s SSN verification systems to verify the employee’s name and SSN, 

but there is no IRS requirement to do so. The option is useful for employers to identify potential 

discrepancies and correct SSNs before receiving a penalty notice. For more information, go to 

www.socialsecurity.gov/employer.

Generally, SSA and IRS records are consistent. However, it is important to note that the database 

used by SSA to match names and SSNs may not be identical to the IRS database. IRS penalty 

notices relating to mismatched TINs are based and issued exclusively on IRS system information.

Mismatches reported under SSA verification systems are not considered IRS notices and do not 

trigger any further solicitation requirements under IRS rules for reasonable cause waivers. However, 

if an employer receives a mismatch notice from SSA, the employer may wish to re-solicit the 

employee’s SSN and try to obtain correct information prior to filing the Form W-2.

VIII. INFORMATION RETURN PENALTY RATES

The Trade Preferences Extension Act (TPEA) of 2015, section 806, increased the IRC 6721 and IRC 

6722 base penalty rates from $100 to $250 for each return that failed to comply with information return 

filing requirements. The calendar year maximum penalties for both large and small businesses also 

increased. In addition, IRC 6721(f) and IRC 6722(f) provide for annual inflationary adjustments to the

IRC 6721 and IRC 6722 penalty rates and calendar year maximum penalties for returns required to be 

filed and furnished on or after January 1, 2016.
15

IRC 6721 & IRC 6722 - Large Businesses with Gross Receipts of More Than $5 Million and 

Government Entities (Other Than Federal Entities)

(Average annual gross receipts for the most recent 3 taxable years)

Time of correct filing Not more than 30 

days late

31 days late -

August 1 After August 1 Intentional disregard

Due 01-01-2024 thru

12-31-2024

(with inflation adjustments

Rev. Proc. 2022-38)

$60 per return or 

statement

$630,500 maximum

$120 per return or 

statement

$1,891,500 maximum

$310 per return or 

statement

$3,783,000 maximum

$630 per return or 

statement

No maximum

Due 01-01-2023 thru

12-31-2023

(with inflation adjustments

Rev. Proc. 2021-45)

$50 per return or 

statement

$588,500 maximum

$110 per return or 

statement

$1,766,000 maximum

$290 per return or 

statement

$3,532,500 maximum

$580 per return or 

statement

No maximum

Due 01-01-2022 thru

12-31-2022

(with inflation adjustments

Rev. Proc. 2020-45)

$50 per return or 

statement

$571,000 maximum

$110 per return or 

statement

$1,713,000 maximum

$280 per return or 

statement

$3,426,000 maximum

$570 per return 

or statement 

No maximum

Due 01-01-2021 thru

12-31-2021

(with inflation adjustments

Rev. Proc. 2019-44)

$50 per return or 

statement

$565,000 maximum

$110 per return or 

statement

$1,696,000 maximum

$280 per return or 

statement

$3,392,000 maximum

$560 per return 

or statement

No maximum

Due 01-01-2020 thru

12-31-2020

(with inflation adjustments

Rev. Proc. 2018-57)

$50 per return or 

statement

$556,500 maximum

$110 per return or 

statement

$1,669,500 maximum

$270 per return or 

statement

$3,339,000 maximum

$550 per return 

or statement

No maximum

Due 01-01-2019 thru

12-31-2019

(with inflation adjustments

Rev. Proc. 2018-18)

$50 per return or 

statement

$545,500 maximum

$100 per return or 

statement

$1,637,500 maximum

$270 per return or 

statement

$3,275,500 maximum

$540 per return 

or statement

No maximum

Due 01-01-2018 thru

12-31-2018

(with inflation adjustments

Rev. Proc. 2016-55)

$50 per return or 

statement

$536,000 maximum

$100 per return or 

statement

$1,609,000 maximum

$260 per return or 

statement

$3,218,500 maximum

$530 per return 

or statement

No maximum

Due 01-01-2017 thru

12-31-2017

(with inflation adjustments

Rev. Proc. 2015-53)

$50 per return or 

statement

$532,000 maximum

$100 per return or 

statement

$1,596,500 maximum

$260 per return or 

statement

$3,193,000 maximum

$530 per return 

or statement

No maximum

Due 01-01-2016 thru

12-31-2016

(with inflation adjustments

Rev. Proc. 2016-11)

$50 per return or 

statement

$529,500 maximum

$100 per return or 

statement

$1,589,000 maximum

$260 per return or 

statement

$3,178,500 maximum

$520 per return 

or statement 

No maximum

Due 01-01-2011 thru

12-31-2015

$30 per return or 

statement

$250,000 maximum

$60 per return or 

statement

$500,000 maximum

$100 per return or 

statement

$1,500,000 maximum

$250 per return 

or statement 

No maximum

➜ Note: Increased penalty amounts may apply for certain failures in the case of intentional 

disregard. In some cases, the penalty amounts in the case of intentional disregard 

may be larger than the figures in this chart and may depend on the aggregate amount 

required to have been reported. See IRC 6721(e)(2) and IRC 6722(e)(2). The penalty 

amounts above apply separately to each IRC 6721 and IRC 6722.
16

IRC 6721 & IRC 6722- Small Businesses with Gross Receipts $5 Million or Less

(Average annual gross receipts for the most recent 3 taxable years)

Time of correct filing Not more than 30 

days late

31 days late -

August 1

After August 1 Intentional 

disregard

Due 01-01-2024 thru

12-31-2024 

(with inflation adjustments 

Rev. Proc. 2022-38)

$60 per return or 

statement

$220,500 maximum

$120 per return or 

statement

$630,500 maximum

$310 per return or 

statement

$1,261,000 maximum

$630 per return or 

statement

No maximum

Due 01-01-2023 thru

12-31-2023

(with inflation adjustments 

Rev. Proc. 2021-45)

$50 per return or 

statement

$206,000 maximum

$110 per return or 

statement

$588,500 maximum

$290 per return or 

statement

$1,177,500 maximum

$580 per return or 

statement

No maximum

Due 01-01-2022 thru

12-31-2022

(with inflation adjustments 

Rev. Proc. 2020-45)

$50 per return or 

statement

$199,500 maximum

$110 per return or 

statement

$571,000 maximum

$280 per return or 

statement

$1,142,000 maximum

$570 per return or 

statement

No maximum

Due 01-01-2021 thru

12-31-2021

(with inflation adjustments 

Rev. Proc. 2019-44)

$50 per return or 

statement 

$197,500 maximum

$110 per return or 

statement

$565,000 maximum

$280 per return or 

statement

$1,130,500 maximum

$560 per return or 

statement

No maximum

Due 01-01-2020 thru

12-31-2020

(with inflation adjustments 

Rev. Proc. 2018-57)

$50 per return or 

statement

$194,500 maximum

$110 per return or 

statement

$556,500 maximum

$270 per return or 

statement

$1,113,000 maximum

$550 per return or 

statement

No maximum

Due 01-01-2019 thru

12-31-2019

(with inflation adjustments 

Rev. Proc. 2018-18)

$50 per return or 

statement

$191,000 maximum

$100 per return or 

statement

$545,500 maximum

$270 per return or 

statement

$1,091,500 maximum

$540 per return or 

statement

No maximum

Due 01-01-2018 thru

12-31-2018

(with inflation adjustments 

Rev. Proc. 2016-55)

$50 per return or 

statement

$187,500 maximum

$100 per return or 

statement

$536,000 maximum

$260 per return or 

statement 

$1,072,500 maximum

$530 per return or 

statement

No maximum

Due 01-01-2017 thru

12-31-2017

(with inflation adjustments 

Rev. Proc. 2015-53)

$50 per return or 

statement

$186,000 maximum

$100 per return or 

statement

$532,000 maximum

$260 per return or 

statement

$1,064,000 maximum

$530 per return or 

statement

No maximum

Due 01-01-2016 thru

12-31-2016

(with inflation adjustments 

Rev. Proc. 2016-11)

$50 per return or 

statement

$185,000 maximum

$100 per return or 

statement

$529,500 maximum

$260 per return or 

statement

$1,059,500 maximum

$520 per return or 

statement

No maximum

Due 01-01-2011 thru

12-31-2015

$30 per return or 

statement

$75,000 maximum

$60 per return or 

statement

$200,000 maximum

$100 per return or 

statement

$500,000 maximum

$250 per return or 

statement

No maximum

➜ Note: Increased penalty amounts may apply for certain failures in the case of intentional 

disregard. In some cases, the penalty amounts in the case of intentional disregard 

may be larger than the figures in this chart and may depend on the aggregate amount 

required to have been reported. See IRC 6721(e)(2) and IRC 6722(e)(2). The penalty 

amounts above apply separately to each IRC 6721 and IRC 6722.
17

IX. IRS MATCHING PROCESS AND NAME CONTROLS

This section provides an overview of the IRS TIN matching process and the development of name 

controls on returns submitted electronically.

All information returns filed must include a correct name/TIN combination to allow for the matching 

of the information reported against the income included on the payee’s income tax return. A 

verification check is performed to determine whether a name/TIN combination is correct by 

matching it against a file containing all SSNs issued by SSA and against a file containing all EINs and 

other TINs issued by IRS.

The name control (if provided) on an electronically filed information return is compared to the name 

control on file. If a name control is not provided or is provided incorrectly, one is developed from

the name(s) provided on the first two name lines (up to 40 characters for each name line including 

spaces) of the information return. If a match can be made, it is considered correct. If a match is not 

found, the name/TIN combination is considered incorrect.

A name control usually consists of up to four characters. To help ensure that the name/ TIN 

combination for an account matches the name/ TIN combination on SSA or IRS files, use the 

following information when filing information returns:

Individuals

A name control for an individual is generally the first four characters of the last name on the 

information return.

• The name control consists of up to four alpha and/or numeric characters.

• The hyphen (-) or a blank space are the only special characters allowed in the name control. 

These characters cannot be in the first position of the name control.

• The name control can have less, but no more than four characters. Blanks may be present 

only as the last three positions of the name control.

• If an individual has a hyphenated last name, the name control is the first four characters from 

the first of the two last names.

• For joint returns, regardless of whether the payees use the same or different last names, the 

name control is the first four characters of the primary payee’s last name.

Examples - Individuals

Name Name Control

Ralph Teak TEAK

Dorothy Willow WILL

Joe McCedar MCCE

Brandy Cedar-Hawthorn CEDA

Victoria Windsor-Maple WIND

Joseph Ash & Linda Birch ASH

Edward & Joan Maple MAPL
18

➜ Reminder: If a payee’s last name has been changed, for instance, due to marriage, advise 

the payee to contact SSA. SSA will issue a new social security card reflecting the 

payee’s new name and will automatically send the IRS the new name. To change 

the name shown on a social security card, the payee should complete SSA Form 

SS-5, Application for a Social Security Card. Form SS-5 is available at www.ssa.

gov or by calling SSA at 1-800-772-1213 (TTY 1-800-325-0778) or by visiting a 

local SSA office.

Sole Proprietors (not including Single-Member LLCs)

A sole proprietor must always use his/her individual name as the legal name of the business for IRS 

purposes.

• The name control consists of four alpha and/or numeric characters.

• The name control can have less, but no more than four characters.

• The hyphen (-) or a blank space are the only special characters allowed in the name control. 

These characters cannot be in the first position of the name control.

• When the taxpayer has a true name and a trade name, the name control is the first four 

characters of the individual’s last name.

• When an individual’s two last names are hyphenated, the name control is the first four 

characters of the first last name.

Examples - Sole Proprietors

Name Name Control Comment

True Name: Arthur P. Aspen

Trade Name: Sunshine Restaurant

ASPE The name control for a sole 

proprietor's name is the first four 

significant characters of the last 

name.

Maiden Name: Jane Smith

Married Name: Jane Smith Jones

JONE When two last names are used 

but are not hyphenated, the name 

control is the first four characters

of the second last name. When the 

last name is hyphenated, the name 

control is the first four characters of 

the first last name.

Jane Smith-Jones SMIT

Elena de la Rosa DELA The Spanish phrases "de", "De", 

"del", and "de la" are part of the 

name control.

Juan Garza Morales GARZ For Spanish names, when an 

individual has two last names, 

the name control is the first four 

characters of the first last name.

Maria Lopez Moreno LOPE

Sunny Ming Lo LO For last names that have only two 

letters the last two spaces will be 

"blank".

Blanks may be present only as the 

last three positions of the name 

control.

Kim Van Nguyen NGUY Vietnamese names will often have

a middle name of Van (male) or Thi 

(female).
19

Partnerships and Single-Member LLCs

The name control for a partnership will usually result in the following order of selection:

1. For businesses “doing business as” (dba) or with a trade name, use the first four characters of 

the dba or trade name.

2. If there is no business or trade name, use the first four characters of the partnership name 

(even if it is an individual’s name, such as in a law firm partnership).

3. Online receipt of EINs generates separate rules for the name control of partnerships.

4. Whether received online or via paper, if the first word is “The,” disregard it unless it is followed 

by only one other word.

5. If the EIN was assigned online (the EIN will begin with one of the following two digits: 20, 26, 

27, 45, 46, 47, 81, 82, 83, 84, 85, or 86), then the name control for a partnership is developed 

using the first four characters of the primary name line.

6. If the first two digits of the EIN are other than 20, 26, 27, 45, 46, 47, 81, 82, 83, 84, 85, or 86 

the name control for a partnership, results from the trade or business name of the partnership.

If there is no trade or business name, a name control results from the first four letters of 

a partnership name. In the case of a list of partners followed by the word partnership or 

an abbreviation thereof, use the last name of the first partner on the original Form SS-4, 

Application for Employer Identification Number.

Examples - Partnerships

Name Name Control

Rosie's Restaurant ROSI

Burgandy Olive & Cobalt Ptrs BURG

The Hemlock THEH

John Willow and James Oak Partnership (EIN assigned online) JOHN

A.S. Green (The) Oak Tree OAKT

K.L. Black & O. H. Brown BLAC

Bob Orange and Carol Black et al. Prs. Dba The Merry Go Round MERR
20

Corporations

The name control for a corporation is the first four significant characters of the corporate name.

Examples - Corporations

Name Name Control Comment

The Meadowlark Company MEAD Omit the word "The" when followed 

by more than one word.

The Flamingo THEF Include the word "The" in the name 

control when followed by only one 

word.

George Giraffe PSC GEOR Corporate name control rules apply 

if an individual name contains the 

abbreviations PC (Professional

Corporation), SC (Small Corporation), 

PA (Professional Association), PS 

(Professional Service), or PSC 

(Personal Service Corporation).

Kathryn Canary Memorial Foundation KATH When the organization name contains 

the words "Fund" or "Foundation", 

corporate name control rules apply.

Barbara J. Zinnia ZZ Grain ZZGR When an individual name and a 

corporate name appear, the name 

control is the first four characters of 

the corporate name.

Estates, Trusts, and Fiduciaries

The name control for estates is the first four characters of the last name of the decedent. The last 

name of the decedent must have the word “Estate” after the first four characters in the primary name 

line.

The name control for trusts and fiduciaries results in the following:

1. Name controls for individual trusts are created from the first four characters of the individual’s 

last name.

2. For corporations set up as trusts, use the first four characters of the corporate name.

3. There are separate rules for the name control of trusts, depending on whether the EIN is an 

online assignment.

4. If the EIN is assigned online (the EIN will begin with one of the following two digits: 20, 26, 27, 

45, 46, 47, 81, 82, 83, 84, 85, or 86), then the name control is developed using the first four 

characters of the first name on the primary name line. Ignore leading phrases such as “Trust 

for” or “Irrevocable Trust.”

5. If the first two digits of the EIN are other than 20, 26, 27, 45, 46, 47, 81, 82, 83, 84, 85, or 86 

then the name control for a trust or fiduciary account results from the name of the person in 

whose name the trust or fiduciary account is established.
21

Examples - Estates, Trusts, and

Fiduciaries

Name Name Control

Howard J. Smith Dec'd 

Howard J Smith, Estate SMIT

Howard J. Smith Dec'd

Howard J Smith, Estate (EIN assigned online) HOWA

Michael T Azalea Revocable Trust 

Michael T Azalea Rvoc Trust AZAL

Sunflower Company Employee Benefit Trust SUNF

Jonathan Periwinkle Memory Church Irrevocable Trust (EIN assigned online) PER

Trust for the benefit of Bob Jones (EIN assigned online) BOBJ

Trust for the benefit of Bob Jones JONE

Other Organizations

Compliance with the following will facilitate the computer programs in identifying the correct name 

control:

1. The only organization, which the filer will always abbreviate, is Parent Teachers Association 

(PTA). The name control will be “PTA” plus the first letter of the name of the state in which the 

PTA is located.

2. The name control for a local or post number is the first four characters of the national title.

3. Use the name control of the national organization name if there is a Group Exemption Number 

(GEN).

4. For churches and their subordinates (for example nursing homes, hospitals), the name control 

consists of the first four characters of the legal name of the church or subordinate.

5. If the organization’s name indicates a political organization, use the individual’s name as the 

name control.

6. The words Kabushiki Kaisha or Gaisha are the Japanese translation of the words “stock 

company” or “corporation.” Therefore, if these words appear in a name line, these words 

would move to the end of the name where the word corporation” would normally appear.

Examples - Other Organizations

Name Name Control

Parent Teachers Association Congress of Georgia PTAG

Church of All CHUR

Committee to Elect Patrick Dole: PATR

Green Door Kabushiki Kaisha GREE
22

X. WHERE TO CALL FOR HELP

Questions related to accessing CD/DVD (see parts XI and XII) or recreating Notice 972CG may 

be directed to the Technical Service Operation (TSO) Centralized Call Site at 866-455-7438 (It is 

important to listen to all options before making your selection) or from outside the U.S. at 304-

263-8700. Other questions and correspondence related to reasonable cause are to be sent to the 

address provided on the notice.

To order Publication 1635, Understanding Your EIN; Form W-9, Request for Taxpayer Identification 

Number and Certification; and/or Publication 15 (Circular E), Employer’s Tax Guide, call the IRS at 

800-829-3676.

The above referenced forms, publications, and additional information are also available on the IRS 

website at www.irs.gov.

XI. FORM 10301, CD ENCRYPTION CODE AUTHORIZATION FOR 

CP2100/972CG/972F NOTICES

Form 10301 is used by filers of information returns to self-assign a Personal Identification Number 

(PIN) that will be used in conjunction with an encryption code (obtained by calling 866-455-7438) to 

access the information contained on the CD/DVD. To obtain the form, select Forms & Instructions on 

www.irs.gov. The form should be mailed to:

Internal Revenue Service 

230 Murall Drive

Mail Stop 4360

Kearneysville, WV 25430

It may also be submitted via fax to: 877-477-0572 or from outside the U.S. 304-579-4105.

➜ Note: It will take the IRS five business days to process the forms upon receipt.

XII. INSTRUCTIONS FOR READING CD/DVDs

Information about the CD/DVD

Payers who filed in excess of 250 Incorrect TIN payee “B” records will have data delivered on a CD 

(for data files of 750Mb or less). Greater than 750Mb will be provided on a DVD. The correct reader 

type is required to access the media (CD or DVD) type.

The files described below are on each CD/DVD:

• I40642 Annnnn ** is the Payer A-Record file. 114 Characters.

• I40642 Bnnnnn ** is all the Incorrect Payee B-Records. 222 Characters each.

• I40642 Cnnnnn ** is the Payer C-Record file. 37 Characters.

• A Copy of Publication 1586, Reasonable Cause Regulations & Requirements for Missing and 

Incorrect Name/TINs (including instructions for reading CD/DVDs)

• Instructions for opening a CD/DVD

• Form 10301, CD Encryption Code Authorization for CP 2100/972CG Notices

** nnnnn is the CD/DVD transmittal number.
23

The files are .txt files. Reading them with Notepad, word processing software, etc. will reflect the

Pipe Codes “I” as separate characters between each field. Opening them in Excel software will allow 

reading them as a delimited file setting the delimiters as pipes “I”. The files will be laid out without 

the Pipe Codes “I”, exactly as laid out in prior year cartridges.

➜ Note: If using certain software, be careful to set or convert fields to text so that leading 

zeros are not truncated or blanked out.

The enclosed CD/DVD is encrypted for security purposes and an encryption code is needed to 

unlock it. The table below provides instructions on how to receive an encryption code and how to 

extract the files.

Step Action

Gather the company name, the TIN, a primary or secondary contact, and your self- assigned PIN number. 

A Form 10301, CD Encryption Code Authorization for CP2100/972CG Notices, should have been 

previously completed and submitted to the IRS. This form notifies the IRS of the self-selected PIN that will 

be used.

1 Insert the CD/DVD in the appropriate drive on your computer.

2

Call the IRS at 866-455-7438 or 304-263-8700 to receive a random- generated encryption code.

If the "Auto-Run" feature is turned on, the system will bring up a pop-up window with the message: 

"Please contact the IRS at 866 455-7438 or 304-263-8700 to receive an encryption code."

If "Auto-Run" is not turned on, the pop-up window will not appear, but the IRS must still be contacted at 

866-455- 7438 or 304-263-8700 to receive an encryption code.

3 Input the random-generated encryption code by double-clicking on the .exe file on the CD/DVD. (The CD/ 

DVD contains only one file on the initial start-up.)

4 Put in the random generated encryption code and click "OK". The next screen will provide instructions for 

browsing the folder tree and selecting where to extract the files.

5 Click on "OK" to begin the process of extracting and importing the files.

The information can be imported into an existing database or into other types of databases. The 

information can also be accessed via an Excel spreadsheet or a similar type of software. However, 

we have included instructions for importing the information into a Microsoft Office Access database 

because Access is capable of supporting a large file while some of the other software programs 

have column or row limitations.

➜ Note: The Internal Revenue Service does not endorse or recommend the use of any 

particular software.
24

Importing the CD/DVD to Access Information

Step Action

1 Open a new Microsoft Office Access database from your start menu or open an existing Microsoft Access 

database.

2 Select "Create a new file"

3

In "New File", select "Blank database". Choose where to save DVD information (i.e. "Documents"/ 

"Desktop" folder). Note: It is important to remember where this information is saved as this will be the 

folder used to import the files later in the application.

4 Select "Create". A dialog box with "(File name) Database" appears.

5 Go to "File" on the "Toolbar" and select "Get External Data" and "Import".

6 In "Import", browse drop down screen to location of text file. Select file. Under "Files of Type", browse 

drop down screen and select "Text File".

7 Select the text file to import.

8 Click "Import", which opens "Import Text Wizard".

9 In "Import Text Wizard", select "Delimited", then select "Next".

10 Select "Other" and insert a "Pipe" ("Shift and Backslash" keys- usually above "Enter" on the keyboard) in 

the box next to "Other". Text qualifier should be "{none}". Select "Next".

11 Select "In a New Table". Select "Next".

12

Selecting one column at a time, highlight the field in the "Import Text Wizard" table (shown below as 

Field1, Field2, through Field15 (the "Field Name" box will change to match the name of the Field column 

that is being highlighted) and ensure "Text" is selected as the "Data Type" for each Field. If not, change the 

"Data Type" field (using the dropdown screen) to "Text". This must be done in all 15 columns. Ensure that 

all 15 fields' "Data Type" is "Text". Accept all other defaults. (Note: At this time, you can name/ customize 

each field with the type of data that will be populated in it).

Select "Next".

Select "No Primary Key" (imports the data exactly). If "Add primary key" is selected, it will add a field in 

the first column and will number the rows. Select "Next".

"Import to Table" should have the name of the file. Select "Finish".

An "Import Text Wizard" box appears that says "Finished importing file..." Click on "Ok". Double click on 

Table Name.

Table should appear.

Note: To "Auto Format" each field, double click on the line in between the boxes.
25

Record Layouts - CD/DVD

Payer “A” Record-CD/DVD

Position Field Title Length Description and Remarks

1 RECORD TYPE 1 AN "A" WILL BE ENTERED

2 Pipe Code 1 "I"

3-17 ACCESS KEY 15 NUMBER USED BY THE IRS TO GROUP A PAYER'S 

INFORMATION RETURN TRANSMITTAL

18 Pipe Code 1 "I"

19-20 SERVICE CAMPUS 2

TWO DIGIT SERVICE CAMPUS CODE 

BROOKHAVEN=19

CINCINNATI = 17

MEMPHIS = 49

OGDEN = 29

PHILADELPHIA = 28

21 Pipe Code 1 "I"

22-30 PAYER'S TIN 9 THE NINE-DIGIT NUMBER ASSIGNED BY THE IRS

31 Pipe Code 1 "I"

32-71 PAYER'S NAME 40 SELF-EXPLANATORY

72 Pipe Code 1 "I"

73-80 NUMBER OF 

DOCUMENTS 8

THE NUMBER OF INFORMATION RETURNS WITH MISSING 

AND INCORRECT TINS ASSOCIATED WITH THIS PAYER. IT 

WILL BE RIGHT JUSTIFIED AND ZERO FILLED

81 Pipe Code 1 "I"

82-89 BWH TIN STATUS 

1 CNT 8

THE NUMBER OF DOCUMENTS SENT TO THE PAYER WITH 

A BWH-TIN-STATUS-IND EQUAL TO "1" (SEE PAYER "B" 

RECORD). IT WILL BE RIGHT JUSTIFIED AND ZERO FILLED

90 Pipe Code 1 "I"

91-98 BWH TIN STATUS 

2 CNT 8

THE NUMBER OF DOCUMENTS SENT TO THE PAYER WITH A 

BWH-TIN-STATUS-IND EQUALTO "2" (SEE PAYER "B" RECORD) 

IT WILL BE RIGHT JUSTIFIED AND ZERO FILLED.

99 Pipe Code 1 "I"

100-107 BWH TIN STATUS 

3 CNT 8

THE NUMBER OF DOCUMENTS SENT TO THE PAYER WITH A 

BWH-TIN-STATUS-IND EQUALTO "3" (SEE PAYER "B" RECORD) 

IT WILL BE RIGHT JUSTIFIED AND ZERO FILLED.

108 Pipe Code 1 "I"

109 FILLER 1 BLANK FILLED

110 Pipe Code 1 "I"

111-114 TAX YEAR 4 TAX YEAR DOCUMENTS WERE SUBMITTED
26

Payer “B” Record-CD/DVD

Position Field Title Length Description and Remarks

1 RECORD TYPE 1 A "B" WILL BE ENTERED

2 Pipe Code 1 "I"

3-11 TIN 9 THE PAYEE'S TIN

12 Pipe Code 1 "I"

13 BWH TIN STATUS 1

"1" MISSING TIN

"2" NOT CURRENTLY ISSUED 

"3" INCORRECT NAME/TIN

14 Pipe Code 1 "I"

15-19 TCC 5 TRANSMITTER CONTROL CODE

20 Pipe Code 1 "I"

21-22 DOC TYPE 2

"02" = Form 1042-S 

"10" = Form 1099-K 

"25" = Form 3921

"26" = Form 3922 

"32" = Form W2-G

"50" = Form 1097-BTC 

"71" = Form 1099-NEC 

"75" = Form 1099-S 

"79" = Form 1099-B 

"80" = Form 1099-A 

"81" = Form 1098

"83" = Form 1098-T

"84" = Form 1098-E

"85" = Form 1099-C

"86" = Form 1099-G 

"91" = Form 1099-DIV 

"92" = Form 1099-INT 

"93" = Form 1099-LTC 

"95" = Form 1099-MISC 

"96" = Form 1099-OID 

"97" = Form 1099- PATR 

"98" = Form 1099-R

23 Pipe Code 1 "I"

24-43 ACCT NUMB 20 PAYEE'S ACCOUNT NUMBER FROM PAYER

44 Pipe Code 1 "I"

45-84 NAME LINE 40 PAYEE'S NAME LINE 1

85 Pipe Code 1 "I"

86-125 NAME LINE 40 PAYEE'S NAME LINE 2

126 Pipe Code 1 "I"

127-166 STR. ADDRESS 40 PAYEE'S STREET ADDRESS

167 Pipe Code 1 "I"

168-197 CITY 30 PAYEE'S CITY

198 Pipe Code 1 "I"

199-200 STATE CODE 2 PAYEE'S STATE CODE

201 Pipe Code 1 "I"

202-206 ZIP CODE 5 PAYEE'S STATE CODE

207 Pipe Code 1 "I"
27

208 TIN INDICATOR 1

"1" = Payer indicated EIN 

"2" = Payer indicated SSN 

"0" = no TIN indicated

209 Pipe Code 1 "I"

210-213 FILLER 4 BLANK FILLED

214 Pipe Code 1 "I"

215-222 SEQUENCE 8 NUMBER OF THE RECORD AS IT APPEARED IN THE FILE

Payer “C” Record-CD/DVD

Position Field Title Length Description and Remarks

1 RECORD TYPE 1 A "C" WILL BE ENTERED

2 Pipe Code 1 "I"

3-10 NUMBER OF 

DOCUMENTS 8

THE NUMBER OF INFORMATION RETURNS WITH MISSING 

AND INCORRECT TINS ASSOCIATED WITH THIS PAYER. IT 

WILL BE RIGHT JUSTIFIED AND ZERO FILLED

11 Pipe Code 1 "I"

12-19 BWH TIN STATUS 

1 CNT 8

THE NUMBER OF DOCUMENTS SENT TO THE PAYER WITH 

A BWH-TIN-STATUS-INDEQUAL TO"1" (SEE PAYER "B" 

RECORD). IT WILL BE RIGHT JUSTIFIED AND ZERO FILLED

20 Pipe Code 1 "I"

21-28 BWH TIN STATUS 

2 CNT 8

THE NUMBER OF DOCUMENTS SENT TO THE PAYER WITH A 

BWH-TIN-STATUS-INDEQUAL TO"2" (SEE PAYER "B" RECORD) 

IT WILL BE RIGHT JUSTIFIED AND ZERO FILLED.

29 Pipe Code 1 "I"

30-37 BWH TIN STATUS 

3 CNT 8

THE NUMBER OF DOCUMENTS SENT TO THE PAYER WITH A 

BWH-TIN-STATUS-INDEQUAL TO"3" (SEE PAYER "B" RECORD) 

IT WILL BE RIGHT JUSTIFIED AND ZERO FILLED.