Stuck in a Tax Verification Loop (Non-US LLC)

[LeafandLoopDesign]

Hey everyone,

I'm hoping someone here can offer a little guidance, as I'm at a complete loss and getting pretty worried. My shop has been frozen, and I can't figure out how to fix it.

Here’s the frustrating timeline:

1. I got a happy email from Trust & Safety saying my "Business information, verified. Great news, or so I thought.

2. But almost immediately, a banner appeared in my Legal & Tax info section, and my shop was deactivated. It says there's an issue with my taxpayer info.

3. I have a non-US resident single-member LLC, and I entered my EIN exactly as it appears on my IRS letter. But the system seems to think I'm a US taxpayer and has pushed me into a W-9 verification loop that I can't get out of.

4. Trying to fix things, I also added my home country's VAT and national ID numbers under the "Additional taxpayer ID" section, but that didn't make a difference.

5. The worst part? I can technically type new information into the boxes, but the system won't let me start a new verification attempt with the changes. I'm honestly afraid to even try, in case it traps me in an even deeper verification loop. It truly feels like I'm stuck in a hamster wheel with no exit.

I’ve opened a support ticket, but I'm only getting automated replies, and nothing in the Etsy Help Center seems to cover this specific situation.

So, my questions for you all are:

• For anyone who's been through this nightmare, what was the one thing that actually got the banner removed and your shop reopened? Was it a specific document you sent in, or did someone at Etsy have to manually fix it on their end?

• For my fellow non-US sellers with an LLC: Is the correct setup "LLC, Disregarded: No, with the EIN as the Primary TIN"? I'm second-guessing everything at this point. 

• Tax classification for a non-US single-member LLC: Trust & Safety has already verified my business info. When I choose “Disregarded entity,” the form requires an SSN/ITIN (I don’t have one yet). To proceed, I selected “Disregarded = No” so I could verify with my EIN. Could experienced sellers/mods confirm whether this interim setup is the correct path until an ITIN is issued, or if it might be what’s keeping the Taxpayer ID/freeze banner in place? I’m open to the recommended alternative flow.

If a moderator sees this and it’s appropriate, I’d really appreciate a quick check or a pointer to the right team. It feels like the account may be stuck in a pending state.

My shop is leafandloopdesign

Thanks so much for reading and for any help you can offer.

All the best

[Amaradorn]

Verification for companies seems to be more complicated than for a private individual. I don't know how it works for the US as I'm in the UK, but try bumping your post later today when the US folks are back online.

As far as I know, If you don't have a SSN then you cannot work or conduct business in the US - so that may be your problem. 

There might be some info here: https://help.etsy.com/hc/en-gb/articles/360000337047-How-to-Update-Your-Legal-Name-and-Taxpayer-Info...

[SugarTaffySoap]

@LeafandLoopDesign  You're shop is open. Was the problem resolved?

[Amaradorn]

@SugarTaffySoap yes, looks open but they have no payment methods available.

[SugarTaffySoap]

@LeafandLoopDesign  I stumbled upon a post with a solution - but I'm not sure if it's the same as a "non-US LLC".  See if this post helps.

Be sure to GO TO THE ORIGINAL POST FOR THIS SELLER, not the second reply.

https://community.etsy.com/t5/Technical-Issues/Unable-to-Verify-LLC-Tax-Information-Solved/m-p/14773...

[LeafandLoopDesign]

Thanks so much for the thoughtful pointers. Really appreciate everyone’s time.

Quick context: I’m non-US, single-member LLC, no ITIN yet, so I followed the Help docs and used LLC + EIN (not SSN/sole prop). Update: after I uploaded my business docs, Trust & Safety corrected my Legal Entity to the exact LLC name (it had briefly shown a concatenated “LLC + personal name + Sole MBR”).

Since then, the Legal & Tax page still shows a taxpayer/freeze banner, and when I open the form I get “The name and Tax ID provided does not match the IRS records” before I even hit Save.

Has anyone seen this clear on its own? How long did it take, and did anything help (sign out/in, revisit later)?

Did name formatting matter for you (“AND” vs “&”, commas/spaces), or did it require a backend refresh/sync by staff?

I’ve also heard brand-new EINs can take a bit to propagate.

Does that match your experience?

Thanks again!

[BagmakerSupply]

@LeafandLoopDesign: Don't know if this applies to you, but the verification checks are run against official databases and there have been reports that there is commonly a delay of 4 - 6 weeks between IRS issuing a new EIN and updating their public facing database.

Etsy does not seem very good at explaining what is going on and at what point verification is stuck. Keep in mind that in your case Etsy (probably using third party vendors) has to essentially verify three separate things - the individual who is the account owner, the "business", and the bank account.

[PrimFun]

What Do I Need to Know About My 1099-K Tax Form? – Etsy Help

How to Update Your Legal Name and Taxpayer Information – Etsy Help   You need an SSN or ITIN

If you just filed then the information is not completely through the system.  IRS can take several weeks before it is the database no matter what the letter says.