August 5, 2019 - Douglas Myser

Final rules permit truncated tins. In the ongoing effort to fight identity theft and tax refund fraud, the IRS has been issuing new rules and regulations, tightening security measures, coordinating efforts with both State Tax Authorities and the Tax Preparation and Tax Resolution Professional Community, all designed to increase awareness of the problem, and bring new solutions to an ever growing threat from cyber criminals. This effort started nearly a decade ago, and has been increased several fold, as the problem has increased over the last few years. Final rules permit truncated tins.

In its continuing effort to reduce identity theft, the IRS issued final regulations that permit employers to use truncated taxpayer identification numbers (TINS) on Forms W-2, Wage and Tax Statement, issued to employees. The regulations finalize proposed rules issued in September 2017 with no substantive changes in response to comments. Permisable TTINs are Social Security numbers with the first five digits of the nine digit number replaced with asterisks or XXXs in the following formats ***_**_1234  or XXX-XX-1234.

The new rules were authorized by an amendment to Sec. 6051 (a)(2) made by the Protecting Americans From Tax Hikes Act, P.L. 114-113, which  replaced the words "social security account number" of the employee with the "identifying number for the employee" in the list of information required to be on Form W-2. Although this change was effective on the date of enactment, Dec. 18, 2015, the IRS is delaying the effective date of the final regulations to specifically requires the statement to contain the employee's SSN.

If you had identity theft, or a wrong taxpayer ID number and as a result have a large tax debt, this Tax Resolution Company can determine your Tax Relief options, including the IRS Fresh Start Program. We are a 35 year old Tax Resolution firm that understands Payroll Tax Debts, and can file your past due tax returns as well.