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The IRS Proposes Changes to W-2s to Fight Identity Theft

By MarksNelson on September 21, 2017 in Articles, Forensic Accounting

The Internal Revenue Service (IRS) wants to change the way certain identifying information is displayed on Forms W-2 – Wage and Tax Statement to help prevent identity theft.  The agency is proposing new regulations that will allow employers to voluntarily truncate an employee’s Social Security Number (SSN) on Forms W-2 so that the truncated SSN appears in the form of an IRS truncated taxpayer identification number or TTIN.

The proposed changes amend the current regulations under Internal Revenue Code section 6109 by clarifying the truncation rules to Forms W-2 and providing certain examples of how the rules should be applied.

Identity theft remains a top concern for the IRS.  According to an IRS report from 2015, the IRS initiated 776 identity theft related investigations, which resulted in 774 sentencings through Criminal Investigation (CI) enforcement efforts.

The IRS is asking for comments on the proposed regulations through December 18, 2017.

Have questions about fraud and tax-related identity theft? Contact Matt Barberich in our Forensic Accounting Department at 816-743-7700.

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MarksNelsonView all posts by MarksNelson
MarksNelson LLC works with clients to help safeguard and grow their businesses. Our ultimate goal is to help our clients to Move Forward. The firm provides Assurance, Accounting Services and Business Advisory, Business Valuation, Consulting, Cost Segregation, Employee Benefit Plan Audits, Litigation Support, Forensic Accounting, International Tax, State and Local Tax and Tax planning, advisory and compliance services. MarksNelson is a member of The Leading Edge Alliance, the second-largest international professional association of independently owned accounting and consulting firms, serving clients who need additional resources on a national or international level. MarksNelson has significant accounting and business advisory experience in the auto dealership, construction, insurance, manufacturing, distribution and real estate sectors. The firm was named among the 2014 Best Accounting Firms for Leadership Equity by the 2014 Accounting MOVE Project for its dedication to gender equity.