IRS expands TTIN use to include Forms W-2

Jul 03, 2019
Jul 03, 2019
0 min. read

The IRS, in its continued efforts to safeguard confidential taxpayer information, has issued final regulations expanding the voluntary use of an IRS truncated taxpayer identification number (TTIN) to include Forms W-2. In 2014, the IRS issued guidance allowing the voluntary use of an TTIN, in lieu of a taxpayer’s social security number (SSN), employer identification number (EIN) or individual taxpayer identification number (ITIN), on payee statements and other documents – most commonly, Forms 1099.  

The TTIN must only display the last four digits of a taxpayer’s identifying number – using either asterisks (*) or Xs to replace the first five digits. And, as with the regulations issued in 2014, employer participation is voluntary because employers are not required to use TTINs on Forms W-2 issued to employees.

This regulation affects Forms W-2 furnished to employees by employers who are (1) required to withhold and deduct employee taxes under section 6051 of the Code or (2) required to report group-term life insurance benefits provided to employees under section 6052. The regulations are effective as of July 3, 2019, and apply to Forms W-2 that are required to be provided to the employee after Dec. 31, 2020.

Forms W-2 that employers file directly with the IRS and SSA must continue to report the full taxpayer identification number.

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  • Cindy Hull

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