Why is my Tax Identification Number (TIN) showing as invalid?
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If your Tax Identification Number (TIN) shows as invalid, it means that the information on file does not match what the IRS has on record. This mismatch can occur for various reasons, such as:
- A typo in the TIN or misspelt names in the Paysafe Business Experience portal
- Incorrect format when the information was originally submitted
- Using a VAT number or business registration number instead of an EIN/SSN
To correct this, update your TIN through the Paysafe Business Experience portal and upload a valid supporting document, such as a W-9 or SS-4. Our team will then verify and process the change.
Below are the valid formats for the different types of Tax Identification Numbers:
- Social Security Number (SSN) must be in the following format: XXX-XX-XXXX
- Employer Identification Number (EIN) must be in the following format: XX-XXXXXXX
- Individual Taxpayer Identification Number (ITIN) always begins with the number 9 and is in the following format: 9XX-XX-XXXX
Other reasons why a TIN may show as invalid include:
- A mismatch between the legal name associated with the TIN and the name IRS has on record.
- Outdated records, e.g., legal name change or business structure change that hasn’t been updated with the IRS
If your TIN is invalid, this may lead to various issues with your account or business in general, such as:
- Backup withholding
- IRS penalties
- Rejected tax forms
- IRS notices
- Delayed processing
To avoid such issues, always make sure you enter a valid TIN, or correct it as soon as possible.