TIN (taxpayer identification number) verification is a type of verification check that confirms the name and TIN number provided matches records found within the Internal Revenue Service database.
TIN - A Taxpayer Identification Number (TIN) is an identification number used by the Internal Revenue Service (IRS) in the administration of tax laws. It is issued either by the Social Security Administration (SSA) or by the IRS. A Social Security number (SSN) is issued by the SSA whereas all other TINs are issued by the IRS. No two entities have the same TIN/legal name combination.
- ITIN - This is a tax ID for individuals. It stands for "Individual Taxpayer Identification Number," and is a nine-digit number used to identify individuals for tax purposes. An ITIN is only assigned to individuals who are required to have taxpayer identification but are ineligible to get a Social Security Number (SSN).
- EIN - A TIN is a general Tax ID Number, and an EIN is specifically an “Employer ID Number” An EIN is a type of TIN
- SSN - Issued by the SSA as opposed to the IRS. Used for taxpaying and benefits allowed for Social Security
- ATIN - Adoption Taxpayer Identification Number a temporary nine-digit number issued by the IRS to individuals who are in the process of legally adopting a U.S. citizen or resident child but who cannot get an SSN for that child in time to file their tax return. (Not in Scope)
- PTIN - ID used to identify paid tax preparer. Out of scope for most identity verification use cases and more in line with credential validation. (Not in Scope)
Why it’s useful
TIN verification is a part of KYB. During KYB onboarding, businesses can provide their EIN for verification against the IRS database.
For KYC, TIN verification can also be used as a fallback to database verification to optimize hit rate. Also, a TIN verification step could be added to an inquiry flow for Non-SSN users.
Interpreting your TIN Verification check results
submitted- obtained TIN and legal name are submitted for validation against the IRS database.
passed- The obtained TIN and legal name match the IRS records. This is otherwise known as a TIN match.
failed- No business found. The TIN and Name provided did not sufficiently match any source databases.
Frequently asked questions
What happens when the IRS database is down?
Persona will continue to retry and run separate verification attempt when the IRS database is down. Persona’s KYB solution can be configured so that businesses continue through overall flow to a certain extent, and then Persona will retry verification when the IRS is up.