How does the IRS track this entry if there is not a reference to the payer's TIN?
The IRS doesn't track it "from your end" at all. The issuer of that 1099-G sent the IRS a copy of that 1099-G. When you e-file your tax return, the fact that you received a 1099-G is *NOT* transmitted with your return at all. The IRS only gets the total amount of rental income received. That's all their interested in "from your end".
If you enter the form "as" a 1099-G, then it will "NOT" be treated as rental income and you will not be able to claim rental expenses against it. Instead, you'll be taxed on the entire amount reported in box 6.
So you do not enter the 1099-G at all. You simply include the amount received/reported in box 6 as a part of your total income received that you report on line 3 of the SCH E. Then you file that 1099-G with "your" records, in case the IRS questions you on it. I seriously doubt you'll ever be questioned on it. But never say never.
