IRS FAQ

IRS Frequently Asked Questions

Q: Why do I have to update my information?

A: The federal Housing Assistance Tax Act of 2008 included the enactment of Section 6050W of the Internal Revenue Code, which requires all payment processors to report each merchant's gross payment card sales to the IRS. To comply with this, we need to be able to match the data in our files with the information contained in the IRS database. 

Q: What happens if I don't update my information?

A: If we do not have a valid TIN on file that matches the Tax Filing Name, your processor will be required to begin backup withholdings of your processing volume starting in January, 2013. These amounts will be a percentage of your daily payment card transactions, and will be submitted to the IRS on a regular basis. You will only be able to recoup the withheld funds when you file your federal tax return for the applicable tax. We will not be able to refund withheld amounts to you. To avoid backup withholding, it is very important that you update your account information and that you enter the Business Name and Tax ID number you use when you file your taxes.

Q: What information needs up be updated?

A: The Tax Filing name and/or the Taxpayer Identification Number on file for your merchant account do not match with what the IRS has on file. Please provide both pieces of information to make sure your records are up to date.

Q: What is the Communication ID?

A: The Communication ID is a unique identifier issued to keep sensitive information safe and protected during the validation process. 

Q: How do I get my Communication ID?

A: You can locate your Communication ID in the email notification from Cayan. 

Q: What is my Tax Filing Name?

A: SOLE PROPRIETORSHIP: If you are a sole proprietor of your business and you have not registered a partnership or gone through an incorporation process, your Tax Filing Name will be the name under which you have filed/will be filing your personal taxes.

PARTNERSHIP/CORPORATION: If you have entered into a partnership or incorporated your business and applied for and received a Tax ID Number (TIN) from the IRS, your Tax Filing Name is the name under which your registered your business. 

Q: What is my Tax ID Number (TIN)?

A: SOLE PROPRIETORSHIP: If you are a sole proprietor of your business and you have not registered a partnership or incorporated your business, the Tax ID Number (TIN) on file with the IRS will be your Social Security Number.

PARTNERSHIP/CORPORATION: If you have entered into a partnership or incorporated your business and applied for and received a Tax ID Number (TIN) from the IRS, this will be the TIN on file with the IRS. If you are not sure what your TIN is, you can get this by contacting the IRS directly. 

Q: What is my Merchant ID number?

A: Your Cayan Merchant ID number is unique to you and located at the top of your monthly processing statement. 

Q: I think the IRS has the wrong information on file for my business. What do I do?

A: If you believe the IRS has the wrong information on file for your business, please contact the IRS directly to update the information.