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.