Getting an error that the Name and Tax Identification Number (EIN/SSN) do not match the IRS records can be frustrating. Let's take a look at how the IRS determines if the names are correct.
IRIS completes issuer and recipient TIN validation on all forms at the time of submission and will report a rejection for name/TIN mismatches on the issuer (Payer/Lender).
What is a name control?
Answer from IRS.gov:
A name control is a sequence of characters derived from a taxpayer’s name that is used by IRS in processing the tax return filed by the taxpayer. It is important that the combination of name control and taxpayer identification number (TIN) provided on an electronically filed return match IRS’s record of name controls and TINs.
A name control is established by the IRS when the taxpayer requests an Employer Identification Number (EIN). The IRS creates the name control from the legal name listed on the Form SS-4, Application for Employer Identification Number.
When a return or extension is filed, the IRS checks whether a name/TIN combination is correct by matching it against a file containing all employer identification numbers (EIN) issued by IRS.
The name control listed on the return/extension is then compared to the name control on the IRS file. If it matches the name control in our records, it is considered to be correct.
Sole Proprietor
Must always use their individual name as the legal name of the business for IRS purposes
May use either SSN or EIN
Individual Name
If a hyphenated last name (or 2 last names), both names must appear
The name control is generated from the first four characters of the first of the two last names