Why Your TIN May Be Considered as Incorrect

If you are an individual taxpayer your TIN will be your Social Security Number (SSN) or, in the case of resident and non-resident aliens your Individual Taxpayer Identification Number (ITIN). Often an individual taxpayer TIN does not match IRS records because a name has changed through marriage, divorce, adoption, etc., and the change has not been reported to either IBKR or the SSA. Other times the account may not contain the correct SSN or ITIN of the actual owner or the title on the account does not match that used for filing tax returns (see Note 2 below).

What You Need to Do

You will need to locate your social security card and, if lost or misplaced, contact your local SSA office to obtain a replacement. If you are a resident and non-resident alien you will need to locate your ITIN card or authorization letter and, if lost, or misplaced contact the IRS to obtain a replacement. You will then need to compare the name and TIN on your social security card or ITIN card/authorization letter with the name and TIN on your IBKR account. Information regarding your IBKR account, including a form for updating your information, will be made available upon log in to Client Portal.

This comparison will require that you take one of the following four actions:

1. If the name and TIN on your account agree with the name and TIN on your social security card or ITIN card/authorization letter - Contact your local SSA office to determine whether the information on SSA’s records is different from that on your social security card and to resolve any problem. If you are holding an ITIN card or authorization letter contact the IRS to reconcile their records. a. If the SSA or IRS determines that the information is different, provide photocopies of documentation supporting where the change has been made (e.g. revised social security card or ITIN card/authorization letter, or letter from the SSA or IRA stating that their records have been amended, along with proof of identity and proof of address). b. If the SSA or IRS determines that the information does in fact agree, provide a copy of an SSA or IRS letter confirming that conclusion along with proof of identity and proof of address.

2. If the TIN on your account is different from the SSN on your social security card or the ITIN on your ITIN card/authorization letter, but the name is the same - Update your TIN through the form made available upon login to Client Portal. You do not need to contact the SSA or IRS. Provide photocopies of supporting documentation (social security card or ITIN card/authorization letter along with proof of identity and proof of address).

3. If the name on your account is different from the name on your social security card or ITIN card/authorization letter, but the TIN is the same on both – a. If the name on your account is correct, contact the SSA to correct the name on your social security card or IRS to correct the name on your ITIN card/authorization letter. Provide photocopies of supporting documentation (revised social security card or ITIN card/authorization letter along with proof of identity and proof of address); b. If the name on your social security card or ITIN card/authorization letter is correct, update your personal information through Client Portal. Provide photocopies of supporting documentation (social security card or ITIN card/authorization letter along with proof of identity and proof of address). You do not need to contact the SSA or IRS.

4. If both the name and TIN on your account are different from the name and TIN on your social security card or ITIN card/authorization letter – a. If the name and TIN on your social security card or ITIN card/authorization letter is correct, update your personal information through Client Portal. Provide photocopies of supporting documentation (social security card or ITIN card/authorization letter along with proof of identity and proof of address. You do not need to contact the SSA or IRS; b. If the name and TIN on your account is correct, contact the SSA to correct the name and SSN on your social security card or IRS to correct the name and ITIN on your ITIN card/authorization letter. Provide photocopies of supporting documentation (revised social security card or ITIN card/authorization letter along with proof of identity and proof of address). Proof of identity may be met through a government issued passport, driver’s license or green card (the document must be valid and include your name and photograph). Proof of address may be met through current lease, utility bill (less than 1 year old), mortgage statement or other evidence of property ownership. Supporting documentation may be scanned and sent via email to accountmanagement@interactivebrokers.com (please place your Account ID in the email subject line, Attn: Tax Reporting) or faxed to 312-984-1032.

IMPORTANT NOTES

1. Once you have identified the source of the mismatch, you will need to log in to Client Portal and follow the instructions for confirming and/or updating your information. Account holders who fail to provide a combination of account name and TIN which can be authenticated against IRS records within 30 days of being notified of a 1099 mismatch may be subject to backup withholding and account restrictions.

2. Certain entity type accounts such as grantor trusts or single member LLCs may file taxes under the SSN of the individual rather than having an EIN assigned.  To avoid a TIN mismatch in these situations, the name of the individual taxpayer should be entered in the first box of the W9 titled 'Name (as shown on your income tax return)' and the name of the entity on the second line titled 'Business name, if different from above'.