IRS Releases Proposed Regulation Allowing Use of Truncated TINs on Form W-2s Furnished to Employees

September 20, 2017 Adam Rivera

The IRS has recently released Proposed Regulation REG-105004-16, which would allow the use of truncated Taxpayer Identification Numbers (TINs) on Forms W-2 furnished to employees.

The main thrust of this proposal would be to aid employers’ efforts to protect employees from identity theft, and these proposed regulations would amend existing regulations to permit employers to voluntarily truncate employees’ social security numbers (SSNs) on copies of Forms W-2, Wage and Tax Statement, that are furnished to employees so that the truncated SSNs appear in the form of the IRS truncated taxpayer identification numbers (TTINs).

As a reminder to filers, employers would still be required to furnish a copy of the employee’s Form W-2 by January 31^st^ of the succeeding year a written statement that shows the employee’s total amount of wages and the total amount deducted and withheld as tax from those wages, along with other information, for each calendar year. Additionally, TTINs are not to be used with Forms W-2 filed directly with the IRS.

About the Author

Adam Rivera is a member of the Regulatory Analysis Team's Direct Tax division at Sovos. His main areas of focus are Federal and State Tax Withholding and Affordable Care Act (ACA) Reporting. Prior to Sovos, Adam worked as a legislative aide in the Florida House of Representatives. He also has experience in securities law, focusing on securities litigation and researching emerging crowdfunding methods of raising capital. Adam is a member of both the Massachusetts and Florida Bars. He earned his B.A. from the University of Florida and his J.D. from the University of Miami.

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