Truncated Taxpayer Identification Numbers TTIN
The IRS issued final regulations (Internal Revenue Bulletin 2014-31) on July 15, 2014 that allow you to truncate payee identification numbers on statements. The goal of these regulations is to reduce the risk of identity theft that may stem from including a taxpayer’s entire identifying number on a payee statement.
The regulations allow you to replace the first five digits of the nine digit number with asterisks(*) or X’s for the following:
- Payee’s social security number (SSN)
- Individual taxpayer identification number (ITIN)
- Employer identification number (EIN)
- Adoption taxpayer identification number (ATIN) on most payee statements
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.
You can truncate a payee's identification number on the statements (including substitute and composite substitute statements) you give to them in paper or electronic format (usually designated Copy B). This includes the Form 1098 series (except Form 1098-C), Form 1099 series, Form 5498 series and Form 1095-C.
If you truncate an identification number on Copy B, the other copies you give the payee should also include the truncated number.
- 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.