While it took a long time, IRS has finalized rules allowing truncated Social Security Numbers, Employer Identification Numbers, and Adoption Identification Numbers on many payee statements and other forms. The IRS started a pilot program in 2009. I wonder how many people consider 5 years a fast turnaround on this common sense change? Perhaps a bigger question is why it took until 2009 for the IRS to begin the pilot program.
Of course IRS had to come up with a new name and acronym TTINs standing for truncated taxpayer identification numbers.
Some eligible forms are:
- Various forms 1099, examples
- interest income (1099-INT)
- dividends (1099-DIV)
- sales of capital assets (e.g. stocks and mutual funds) (1099-B)
- sales of real estate (1099-S)
- retirement, annuity, and IRA distributions (1099-R)
- forgiveness of debt (1099-C)
- payments to independent contractors, etc. (1099-MISC)
- Various forms 1098, examples
- Mortgage interest (1098)
- Tuition (1098-T)
The truncated number can only be used on the recipient’s copy. The copy going to IRS still shows the full number. The bulk of forms are transmitted electronically to the IRS thus eliminating the chance of waylaid mail.
Your W-2 still has to show your full Social Security Number.
Sources: Fighting Identity Theft, IRS Issues Final Rules on Truncated Identification Numbers , AICPA and Treasury Document 9675 (PDF).