Taxpayer Identification Number Compliance

The Internal Revenue Service (IRS) issued final regulations requiring that, starting with transactions in calendar year 2011, the gross amount of payment card transactions be reported annually to merchants and the IRS. These final regulations contain rules to implement reporting of credit card, debit card and similar transactions. As of January 2012, every payment settlement entity files a 1099-K form with the IRS reporting the gross amount of each merchant’s card transactions for the prior year, as well as provide a corresponding statement to each merchant.

The new regulations require that the merchant’s Taxpayer Identification Number (TIN) and legal name, as listed in its 1099-K, match what is on file with the IRS. If a merchant fails to provide its TIN, or if there is a discrepancy between the TIN and/or legal name the merchant previously provided and the TIN and/or legal name on file with the IRS, then the IRS may require the reporting entity to withhold a portion of the merchant’s future payments from card transactions (the withholding rate is currently set at 28%). This withholding provision went into effect in 2013. Merchants will be issued annual information reports, known as 1099-Ks. This report, which is issued to both the IRS and the merchant, identifies the merchant’s gross card transaction payments.

To help you understand and comply with the new regulations, we have provided a list of Frequently Asked Questions.

How to Update Your TIN

As an additional benefit to you, we compare TINs and legal names in our records to the information in the IRS database. If the information we have does not match the IRS database, we will notify you.

To avoid a disruption in your merchant funding, we ask that you review your TIN and legal name as they were originally filed with the IRS and as provided to us and ensure that both are accurate and consistent. If you need to update your information on file with us, you have 2 options:

  1. Submit your SS-4 Form issued to you by the IRS Department of the Treasury
  2. Submit your completed W-9 Form. You can submit either form to us by Fax, Email or Mail. Please see our contact information listed below.

FAX

888-300-8927

Mail

Attn: TIN Validation
Merchant Services
21650 Oxnard St. Suite 1200
Woodland Hills, CA 91367

Note: Please provide your merchant identification number (MID) on all documents submitted to TIN Validation.