The IRS requires you to use the legal name of the supplier on 1099 returns. A supplier's legal name is the name that the IRS associates with the supplier's TIN. A supplier enters their legal name on the W-9 form that they submit. For tax purposes, a supplier can have only one legal name.
If the mailing name on the supplier master record is not the legal name of the supplier, you must enter the legal name using the Who's Who program (P0111) and designate a type code of T (1099 legal name). The system prints both the mailing and legal names on the 1099 return.
If you do not use the supplier's legal name, the IRS records will not match the name that you provide on the 1099 form, and the IRS can penalize or fine you.
