The IRS issued final regulations ( T.D. 9675) on July 15 establishing guidelines for the use of truncated tax identification numbers (TTINs) by filers of information returns when issuing payee statements and other documents.
TTINs were introduced as part of an IRS pilot program in 2009 after the government became concerned about identity theft and its effect on tax administration. They can be used by filers of information returns in lieu of a taxpayer's Social Security number, individual taxpayer identification number, IRS adoption identification number or employer identification number (EIN), and they display only the last four digits of any of those tax identification numbers (TINs), replacing the first five digits with either asterisks or Xs.
The final regulations greatly expand the proposed regulations (REG-148873-09) by allowing filers to use TTINs on many more IRS forms and documents. Previously, TTINs were allowed to be used only on payee statements in the Forms 1098, 1099 and 5498 series. Under the final regulations, TTINs may be used on any federal tax–related payee statement or other document required to be furnished to another person unless prohibited by the Internal Revenue Code, regulations or other guidance.
It's important to note, however, that TTINs may be used only on information returns or documents issued to taxpayers. Forms or documents submitted to the IRS must retain the full identification number of the taxpayer.
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