Taxpayer Identification Number (TIN): Rules for Miscellaneous Income Payments


Miscellaneous income payments to persons, sole proprietors, and partnerships must be reported to the IRS. The Internal Revenue Service (IRS) requires a valid Taxpayer Identification Number (TIN) for reportable
payments. An independent contractor, participant stipend recipient, royalty recipient, or rent recipient who is paid through the AP module, must have a valid TIN. If a valid TIN is not obtained prior to payment, the payment is subject to "backup withholding" per IRS regulations. Therefore, payment must not be processed and a supplier hold must be applied until the proper documentation has been obtained.

A supplier hold may also be required if the IRS notified us of missing or incorrect name/TIN matches. Refer to procedure "Notification of Invalid Taxpayer Identification Number Process".

Some miscellaneous income payment recipients may have been assigned an SSN due to previous IRS individual taxpayer filing requirements. If the person does not have a SSN, he or she must obtain an Individual Taxpayer Identification Number (ITIN).

Related Procedures

IRS Publications

Change History



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