We recently sent our list of vendors to the IRS and received a file back showing unmatched vendor names. We found that some of these unmatched vendor names are sole proprietors. We have the Social Security Number (SSN) in our database as the
Looking up vendors whose TIN's don't match the IRS
Answers
When we were notified of mis-matches, the IRS told us that we would have to send a B Notice to vendors we could not otherwise explain a mis-match for. The letter is very long, but it basically states the IRS has noted a problem with them. We added a line that we would cease doing business with them until we received current and correct information.
In many cases we found that the sole proprietors did not know how to fill out a W-9 and a short conversation with them resolved the issue. The most common item was how to fill in the company name, dba name, and whether to provide a SSN or their TIN/FEIN. A few vendors chose to ignore our note (we stopped doing business with them).
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Sara, where do I get a copy of this B notice?
Sorry for the delay in responding Renee (vacation). I googled the form and then had to re-type the darn thing because I could not locate it in word format anywhere.
Thank you. Found it!
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Tax