To reduce the risk of identity theft, you may truncate a payee's identification number on the statements you give to them on paper or in electronic format (usually designated Copy B). This includes the following:
- Substitute and composite substitute statements
- Form 1095-C
- Form 1098 series (except Form 1098-C)
- Form 1099 series
- Form 5498 series
If you truncate an identification number on Copy B, the other copies you give the payee should also include the truncated number.
In the following instances, you may replace the first five digits of the nine-digit number with an asterisk (*) or X on most payee statements:
- Payee’s Social Security number (SSN)
- Individual taxpayer identification number (ITIN)
- Employer identification number (EIN)
- Adoption taxpayer identification number (ATIN)
- You may not truncate on any forms filed with the IRS (Copy A) or with state or local governments.
- You cannot truncate your own identification number.
- These rules do not apply to Form W-2.
A payee is any person who is required to receive a copy of the form. For some forms, the term payee will refer to beneficiary, borrower, debtor, insured, participant, payer, policyholder, recipient, shareholder, student or transferor.