TaxBandits Knowledge Base

What Happens if You Don’t Furnish a TIN for an IRS Form?

If you fail to provide a Taxpayer Identification Number (TIN) for an IRS form, several consequences may occur:

• Form Rejection: The IRS may reject your form if it lacks the required TIN. This could apply to forms such as the 1099 series, W-9, or other tax-related documents.
• Penalties: Failure to furnish a TIN may result in penalties. The IRS imposes penalties for not providing correct taxpayer identification numbers on various forms. The penalties can vary based on the specific form and the timing of corrections. To know more about the penalties, click here.
• Backup Withholding: If a TIN is not provided or is incorrect, the payer may be required to withhold taxes at a backup withholding rate. This amount is then remitted to the IRS.
• Delayed Processing: The absence of a TIN could lead to delays in processing your forms, potentially affecting your tax-related transactions and compliance.
• Notice from the IRS: The IRS may issue notices, such as CP2100 or CP2100A, indicating TIN discrepancies. In response, you must furnish the correct TIN information and promptly address the issue.
• Impact on Recipients: If you're a recipient of income and fail to provide your TIN to a payer, the payer may be required to withhold taxes from your payments at the backup withholding rate.

Therefore, it's crucial to ensure accurate and timely submission of TIN information to avoid these consequences. If there are errors or omissions, addressing them promptly can help mitigate penalties and ensure compliance with IRS regulations.