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IRS Extends, Modifies Program Allowing Truncated Social Security Numbers on Information Returns - Emil Estafanous, CPA : Emil Estafanous, CPA

IRS Extends, Modifies Program Allowing Truncated Social Security Numbers on Information Returns

The IRS announced that it is fluctuating and modifying a commander module designed to deter temperament burglary (Notice 2011-38). Under a program, that was introduced in 2009, filers of certain paper information earnings are authorised to lop a payee’s Social Security array on a payee statement. The notice extends a module to payee statements for 2011 and 2012.

The module covers paper payee statements for forms in a 1098, 1099 and 5498 series. However, Notice 2011-38 privately excludes Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes, since that form is an acknowledgment rather than a payee statement.

The module does not request to:

  • Information earnings filed with a IRS;
  • Payee statements filed electronically; or
  • Any payee matter not specified in Notice 2011-38.

The accede to lop relates usually to particular identifying numbers (that is, Social Security numbers, particular taxpayer marker numbers (ITINs) or adoption taxpayer marker numbers (ATINs)) on a paper payee statements specified in a notice; employer marker numbers (EINs) and filer marker numbers can't be truncated.

Filers contingency accommodate certain requirements, spelled out in a notice, though if they do, they will be treated as carrying met a several IRS and Treasury mandate that a payee’s Social Security or taxpayer marker array be enclosed on a statement.

The filer contingency lop a nine-digit array by replacing a initial 5 digits with an X or an asterisk. Thus, according to a notice, a representation Social Security array 123-45-6789 would be transposed possibly with XXX-XX-6789 or ***-**-6789.

The IRS has asked for comments on either payors should be authorised to lop a payee’s EIN, either truncation should be available on additional forms of payee statements, and either payors should be authorised to lop a payee’s identifying array on electronically furnished payee statements. Comments should be submitted on or before Jul 29, and can be emailed to Notice.Comments@irscounsel.treas.gov. “Notice 2011-38” should be enclosed in a theme line.

About Emil Estafanous, CPA
Certified Public Accountant (CPA) Tax Professional committed in representing taxpayers and resolving their tax problems.

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