Tax News

CCH (cch.taxgroup.com) reports:

  The IRS has created a pilot program allowing filers of information returns to truncate an individual payee's nine-digit identifying number on paper payee statements for calendar years 2009 and 2010 if the filers meet certain requirements. The pilot program is available only to paper payee statements in the Form 1098 series, Form 1099 series and Form 5498 series, which report payments or distributions made to an individual during a calendar year.

  The three types of identifying numbers applicable to individuals are social security numbers, IRS individual taxpayer identification numbers and IRS adoption taxpayer identification numbers. These numbers are sensitive personal information; consequently, a risk exists that the information could be misappropriated from a payee statement and misused in various ways, possibly to facilitate identify theft. The pilot program is an effort to minimize this risk. If requirements regarding the type of information return and the type of identifying number are met, the identifying number is truncated by replacing the first five digits of the nine-digit number with asterisks or Xs.

  The IRS invites interested parties to comment on the pilot program by submitting comments by May 1, 2010.

Notice 2009-93, 2009FED ¶46,531

Other References:

 
Code Sec. 6041

  CCH Reference - 2009FED ¶35,836.30

 
Code Sec. 6045

  CCH Reference - 2009FED ¶35,930.28

 
Code Sec. 6050H

  CCH Reference - 2009FED ¶36,186.075

 
Code Sec. 6722

  CCH Reference - 2009FED ¶40,240.021

  CCH Reference - 2009FED ¶40,240.40

  Tax Research Consultant

  CCH Reference - TRC: FILEBUS: 12,106