Truncate ID on Paper Payee Statements
December 26th, 2009
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The IRS announced that filers of information returns in 1098, 1099, and 5498 series can truncate an individual payee’s identifying number on paper statements. An individual identifying number is a social security number (SSN), individual taxpayer identification number (ITIN) or adoption taxpayer identification number (ATIN). This provisions does not apply to employer identification numbers (EINs) in the format xx-xxxxxxx.
Under this optional program, payers may replace the first five digits of identifying numbers with asterisks or the letter x. For example, a social security number could appear as xxx-xx-1234 or ***-**-1234. This will enable better protection of personal identifying information for the recipients.