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Truncate ID on Paper Payee Statements

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.

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Erich J. Ruth

Erich J. Ruth provides technical support for National Software which is the parent company for 1099FIRE. 1099FIRE develops and markets a comprehensive range of products that enables any size of business or institution to effectively manage and comply with year-end filing requirements. 1099FIRE is an employee-owned company located in Phoenix, Arizona.

If you have any questions or comments about our software, feel free to contact us at any time.

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