IRS Allows Truncated SS#, EIN and TIN on Certain Forms

Effective July 2014 the IRS will allow truncating payee identification number on payee statements.

Filers of information returns Forms 1098, 1099, and 5498 are permitted to truncate a payee's SSN, ITIN, ATIN, or EIN on payee statements. Filers may truncate a payee's identification number on the payee statement (including substitute and composite substitute statements) furnished to the payee in paper form or electronically. If a filer truncates an identification number on Copy B, other copies of the form furnished to the payee may also include a truncated number.

Generally, the payee statement is that copy of an information return designated

"Copy B" on the form. A "payee" is any person who is required to receive a copy of the information set forth on an information return by the filer of the return. For some

forms, the term "payee" will refer to beneficiary, borrower, debtor, insured, participant, payer, policyholder, recipient, shareholder, student, or transferor.

A filer may not truncate a payee's identification number on any forms the filer files with the IRS. A filer's identification number may not be truncated on any form.

To truncate where allowed, replace the first 5 digits of the 9-digit number with asterisks (*) or Xs (for example, an SSN xxx-xx-xxxx would appear on the paper payee statement as ***-**-xxxx or XXX-XX-xxxx). See TreasuryDecision 9675, 2014-31 I.R.B. 242, available at www.irs.gov/irb/2014-31_IRB/ar07.html.

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