After attending the PATH Act Webinar, we have identified all of our vendors that have an ITIN. We have verified their name and ITIN against the IRS Database...


Q. (cont.) The webinar talked about those with the SSN format but did not mention companies. If the vendor has an ITIN for an EIN and we have a W-9 on file, do we need to do anything further?

A. We spoke with IRS reporting specialist Ms. Oroke (#1000269820) about this matter. We want to be certain that you don't have both an ITIN and an SSN for the same individual, or both an ITIN and an EIN, but rather that the only identification number you have is the ITIN. If that's the case, that is as it should be.

As you probably know, an ITIN is issued only to individuals who are unable to obtain an SSN--generally foreign nationals. In this case, you should have a W-8BEN on file rather than a W-9; you would likewise report on a form 1042-S rather than a 1099 at year-end.

However, note than an ITIN does not authorize an individual to work in the U.S., or provide eligibility for Social Security benefits or the Earned Income Tax Credit. It is simply a tax identification number.

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