Why Does 43-1591643 Appear on a 1099-R Tax Form?

Understanding why specific numbers, such as 43-1591643, appear on tax documents like the 1099-R is crucial for accurate tax reporting. These numbers serve an important role in identifying entities involved in financial transactions reported to the IRS. This article explores the role of these identifiers and explains why they appear on tax forms.

Purpose of a TIN on Tax Forms

A Taxpayer Identification Number (TIN) serves as a unique identifier for individuals and entities within the tax system. The IRS requires TINs to track and report tax obligations accurately. This number can take various forms, such as a Social Security Number (SSN), Employer Identification Number (EIN), or Individual Taxpayer Identification Number (ITIN), depending on the taxpayer’s category.

On forms like the 1099-R, the TIN is essential for matching reported income with the correct taxpayer. This minimizes errors and discrepancies in tax filings, which could otherwise lead to audits or penalties. An EIN is generally used by businesses and organizations, while an SSN identifies individuals. For 1099-R forms, which report distributions from pensions, annuities, and retirement plans, the payer’s TIN ensures the income is properly attributed and taxed.

In retirement distributions, the TIN allows the IRS to verify the information provided by the payer aligns with the recipient’s tax return. This ensures compliance with tax laws, especially given the complexities surrounding retirement accounts, where distributions may be taxed differently depending on their type.

Why 43-1591643 Might Appear on a 1099-R

The number 43-1591643 on a 1099-R is likely an Employer Identification Number (EIN) assigned to the entity issuing the form. Each EIN uniquely identifies a business or organization, ensuring accurate tax reporting. This number likely belongs to a financial institution, pension fund, or another entity managing retirement accounts. The IRS uses the EIN to trace the source of the distribution and verify compliance with reporting requirements.

For a 1099-R, the EIN links the payer to the IRS, facilitating proper documentation of distributions. It is critical for issuers to use the correct EIN to avoid errors, delays, or penalties. Incorrect or missing EINs can lead to processing delays and potential scrutiny from the IRS. The presence of 43-1591643 reflects the entity’s adherence to regulatory obligations, ensuring distributions are accurately reported and taxed.

Differentiating Filing Requirements

Understanding filing requirements for tax forms like the 1099-R is essential for both issuers and recipients. Each form has specific criteria regarding who must file, what information must be included, and filing deadlines.

Entities issuing a 1099-R must accurately report distributions, considering factors such as the type of retirement account and the nature of the distribution. IRS instructions require a separate form for each distribution, detailing gross amounts, taxable portions, and withheld taxes. Issuers must meet filing deadlines—typically January 31st of the year following the distribution—to avoid penalties ranging from $50 to $280 per form, depending on the delay.

Recipients must also understand the information on their 1099-R. They are responsible for accurately reporting distributions on their tax returns, including any penalties for early withdrawals unless exceptions apply. Verifying that the amounts and payer details match their records is crucial to avoid discrepancies that could delay tax processing or result in penalties.

Potential Issues From Using an Incorrect TIN

Using an incorrect Taxpayer Identification Number (TIN) on tax forms can cause significant complications for both taxpayers and issuers. Discrepancies between IRS records and reported information can prompt notices requiring clarification or additional documentation, delaying tax return processing and potentially affecting refunds or creating unexpected tax liabilities.

The IRS imposes penalties for incorrect TINs—$50 per incorrect form, up to a maximum of $556,500 for small businesses. Persistent errors can increase scrutiny from the IRS, potentially leading to audits and requiring stricter internal controls to prevent future mistakes.

Recognizing When to Request Additional Documentation

When discrepancies arise on a 1099-R, requesting additional documentation can help clarify and resolve issues. Both taxpayers and issuers share responsibility for ensuring the accuracy of information submitted to the IRS.

Taxpayers should request additional documentation if the reported amounts on the 1099-R differ from their records. For example, if the gross distribution amount seems incorrect, they should ask the payer for a detailed breakdown, including transaction records or explanations of rollovers, taxable amounts, or withheld taxes. This documentation can clarify discrepancies and provide evidence needed for accurate tax reporting.

Issuers may need to request documentation in cases of mismatched recipient information, such as discrepancies between names and TINs. This often occurs when recipients fail to update their records after legal name changes. Issuers should request updated identification, such as a Social Security card or IRS Form W-9, to verify the recipient’s details. Ensuring accuracy minimizes the risk of penalties and fulfills regulatory obligations.