FAQs for Organization v Individual NPIs and their Tax IDs
This page provides answers to questions about situations where a provider's 1099 information is reported on another NPI, such as an Organization sharing a Tax ID with Individuals as associates or affiliates.
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1. I am an individual provider. Why was my income for last year reported to an organization's EIN?
The income is reported to the Tax ID number listed on the providers record that received payment. You may need to correct the Tax ID listed in your provider record. See the Enrollment FAQs for more information on EINs in individual provider records. In addition, the organization may need to file a Nominee/Middleman return for last year. See the other 1099 FAQs below.
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2. How does the Organization correct the fact that my income was reported to their EIN?
Generally, if they receive a Form 1099 for amounts that actually belong to your individual or organization, they are considered a nominee recipient. They must file a Form 1099 with the IRS (the same type of Form 1099 you received) for each of the other individuals or organizations showing the amounts allocable to each. They must also furnish a Form 1099 to each of the other individuals or organizations. They file the new Form 1099 with Form 1096 with the Internal Revenue Service Center for your area. On each new Form 1099, they list themselves as the “payer” and the other owner as the “recipient.” On Form 1096, they list themselves as the “Filer.” A spouse is not required to file a nominee return to show amounts owned by the other spouse. The nominee, not the original payer, is responsible for filing the subsequent Forms 1099 to show the amount allocable to each owner. See the IRS website for more information about Nominee/middleman returns under "A. Who Must File." A review of how claims are being filed and what tax ID are on each and every record in NCTracks should be undertaken.