When preparing files for the IRS, how important is it . . .
Question
When preparing files for the IRS, how important is it to format an SSN or an EIN? Do we need to include the hyphens to separate the numbers in the appropriate places?
Answer
If you are filing your Forms 1099 electronically, the TIN is provided in a nine digit field (without hyphens) and there is also a one-character TIN Type Indicator.
For paper Forms 1099, there is no specified rule regarding hyphens. In the absence of any rule on this subject, it is probably best if you do format the TINs on your paper filings. This will allow the IRS to distinguish between the types.