Airbase displays an Invalid Tax ID status when the combination of Tax ID and Legal Name does not match the respective government records, such as the IRS. Read this article to learn how to validate your Tax ID in the Airbase Vendor Portal account.
U.S. Vendors:
- Enter the correct legal name and tax ID that matches the information displayed on your official government-issued documentation, such as the SS-4 confirmation letter and 147C letter issued by the IRS.
- If you are an individual (such as a sole proprietor or a single-member LLC), try entering the Legal Name as provided in Line 1 - Name field on the W-9 form for the tax ID validation in Airbase. The Name field should match your legal name as it appears on your tax returns.
- If you are a business entity (such as a corporation, partnership, or multi-member LLC), try entering the Legal Name as provided in Line 2 - Business name on the W-9 form for the tax ID validation in Airbase. The Business name field should match the legal name of your business entity as it appears on the official records.
- For newly issued tax IDs, the IRS might return an invalid tax ID response. It typically takes about two weeks for the IRS to update the tax ID in their database.
- Contact the IRS e-help desk for discrepancies in the TIN.
Non-U.S. Vendors:
- Select the correct Tax ID type in Airbase. Read this article to learn more about selecting the valid Tax ID type.
- The tax ID and legal name on the Airbase must match the information on the W-8 form while sharing the ITIN or foreign tax ID issued by the IRS.
- Ensure that the provided ITIN has not expired. Refer to this article to learn more about the expiration of ITINs and how to renew them.
- U.K.-based vendors must enter their U.K. VAT ID or U.S. ITIN for tax ID validation. UTR (Unique Taxpayer Reference) can not be validated through official government sources.
Important
Sometimes, government databases can be out of sync. For instance, if the tax ID has been recently issued or updated, it might not reflect immediately in government records. The IRS, for instance, typically takes a few weeks to update its database with the latest information.
In such cases, you can manually mark the tax ID as valid. This will provide you with an evidence trail during tax reporting. Ensure the tax ID is accurate before manually marking it as valid to improve tax compliance.
Sometimes, government databases can be out of sync. For instance, if the tax ID has been recently issued or updated, it might not reflect immediately in government records. The IRS, for instance, typically takes a few weeks to update its database with the latest information.
In such cases, you can manually mark the tax ID as valid. This will provide you with an evidence trail during tax reporting. Ensure the tax ID is accurate before manually marking it as valid to improve tax compliance.
Note
Vendors will continue to receive payments as usual even if their tax ID is marked as Invalid in Airbase. The tax ID validation status does not affect any payments made to the vendor.
Vendors will continue to receive payments as usual even if their tax ID is marked as Invalid in Airbase. The tax ID validation status does not affect any payments made to the vendor.