It's a behind-the-scenes process, but getting it right is key to avoiding those frustrating rejections. The name control is a four-character code derived from the taxpayer's name. It's matched against IRS and Social Security Administration (SSA) databases. Here's the breakdown for different entity types:
Individuals
For individuals, the name control is generally the first four letters of their last name. However, there are exceptions:
Hyphenated Last Names: Use the first four characters of the first last name.
Example: Brandy Cedar-Hawthorn = CEDA
Joint Returns: Use the primary taxpayer's (first name listed) last name.
Example: Joseph Ash & Linda Birch = ASH
Spanish Names: Use the first four characters of the first last name.
Example: Juan Garza Morales = GARZ Maria Lopez Moreno = LOPE
Short Last Names: If the last name is less than four letters, use what's there and fill the rest with spaces.
Example: Lo = *LO * (Note the three spaces after LO)
Vietnamese Names: Ignore "Van" or "Thi."
Example: Kim Van Nguyen = NGUY
The IRS uses these criteria to establish the name control:
The name control consists of up to four alpha and/or numeric characters.
The hyphen (-) or a blank space are the only special characters allowed in the name control. These characters cannot be in the first position of the name control.
The name control can have less, but no more than four characters. Blanks may be present only as the last three positions of the name control.
Partnerships or Single Member LLCs
The name control for partnerships or LLCs depends on a few factors:
"Doing Business As" (DBA) or Trade Name: Use the first four letters of the DBA or trade name.
Example: Rosie's Restaurant = ROSI
No DBA or Trade Name: Use the first four letters of the partnership name.
Example: Burgandy Olive & Cobalt Partnership = BURG
The: Disregard "The" unless it's followed by only one other word.
Example: The Hemlock = HEML
EIN Assigned Online: If the EIN was assigned online (starts with 20, 26, 27, 45, 46, 47, 81, 82, 83, 84, 85, or 86), use the first four letters of the primary name line.
Example: John Willow and James Oaks Partnership (EIN assigned online) = JOHN
List of Partners: If it's a list of partners, use the last name of the first partner on Form SS-4.
Example: K.L. Black & O.H. Brown = BLAC
Corporations
The name control for a corporation is simply the first four letters of the corporation's name.
"The": Omit "The" if followed by more than one word.
Example: The Meadowlark Company = MEAD
Abbreviations: Corporate name control rules apply when corporations name contains the abbreviations such as PC (Professional Corporation), SC (Small Corporation), PA (Professional Association), PS (Professional Services), or PSC (Personal Service Corporation).
Example: George Giraffe PSC = GEOR
Estates, Trusts, and Fiduciaries
The name control rules for estates, trusts, and fiduciaries can be a bit complex:
Estates: Use the first four letters of the decedent's last name, and the last name of the decedent must have the word "Estate" after the first four characters in the primary name line of the return.
Example: Howard J. Smith Dec'd Howard J. Smith, Estate = SMIT
EIN Assigned Online: If the EIN was assigned online (starts with 20, 26, 27, 45, 46, 47, 81, 82, 83, 84, 85, or 86), use the first four letters of the first name on the primary name line.
Example: Howard J. Smith Dec'd Howard J. Smith, Estate (EIN assigned online) = HOWA
Individual Trusts: Use the first four letters of the individual's last name.
Example: Michael T Azalea Revocable Trust = AZAL
Corporate Trusts: Use the first four letters of the corporate name.
Example: Sunflower Company Employee Benefit Trust = SUNF
Exempt Organizations
Here's how exempt organizations should handle the name control:
Parent Teacher Association (PTA): Always abbreviate as "PTA" and add the first letter of the state.
Example: Parent Teacher Association Congress of Georgia = PTAG
Local Chapter of National Organization: Use the first four letters of the national organization's name.
Example: Kiwanis Club of Atlanta = KIWA
Churches: Use the first four letters of the church's legal name.
Example: Church of All = CHUR
Japanese Corporations: Move "Kabushiki Kaisha" or "Gaisha" to the end of the name.
Example: Kabushiki Kaisha Tanaka = Tanaka Kabushiki Kaisha = TANA