What happens when a seller refuses to provide their U.S. T.I.N.? Does this put a stop to the transaction? The short answer is, "No." When a seller refuses to provide their U.S. T.I.N., it does not put an abrupt stop to the transaction.

Luckily for the buyer, settlement agents can proceed with the closing. The settlement agent still must file the 1099–S. It is filed without a U.S. T.I.N. by informing the IRS, "Seller refused to provide a Taxpayer Identification Number."

A settlement agent's obligation is merely to solicit the seller's U.S. T.I.N. If the seller refuses, the file should be documented and the 1099–S should be filed anyway. When the seller refuses to provide their U.S. T.I.N., settlement agents should provide the seller with written notice of their obligation to provide their U.S. T.I.N. and notification the 1099–S will be reported to the IRS indicating their refusal to provide a U.S. T.I.N. A copy of the notice should be maintained in the file.

The 1099–S will have to be filed manually. This is done through the National 1099 Department for FNTG direct operations. Settlement agents should send them a copy of the Refusal Notice and the completed Substitute 1099–S indicating Seller refused to provide a U.S. T.I.N. to 1099info@fnf.com.

Settlement agents can proceed with the transaction without the threat of a fine by the IRS and the seller can deal with the IRS later as to why they refused to cooperate.