Read the proposed regulations: REG-148873-09 [PDF 43 KB]
The proposed regulations would implement a pilot program (initially announced in Notice 2009-93 and extended and modified by Notice 2011-38) that allowed filers of certain information returns to truncate an individual payee’s nine-digit identifying number on specified paper payee statements furnished for calendar years 2009 through 2012.
The pilot program was implemented in response to concerns about the risk of identity theft stemming from the inclusion of a taxpayer identifying number on a payee statement. In particular, the risks of misappropriation and subsequent misuse of that number were reported to be greatest with respect to paper payee statements.
Under the proposed regulations, the payee statements on which TTINs may be included are all statements in the Forms 1099, 1098, and 5498 series, with the exception of Form 1098-C. Note that TTINs may not be used for Form W-2.
Under the truncated taxpayer identification number (TTIN) program:
- The TTIN is to be an alternative to using a social security number (SSN), IRS individual taxpayer identification number (ITIN), or IRS adoption taxpayer identification number (ATIN).
- The filer of certain information returns may use a TTIN on corresponding payee statements, furnished by paper or electronic means, to identify the individual being furnished a statement.
- The TTIN displays only the last four digits of an individual’s identifying number and is shown in the format XXX-XX-1234 or ***-**-1234.
Comments with respect to the proposed regulations must be received by a date that is 45 days after their publication in the Federal Register, which is scheduled for January 7, 2013.
A public hearing is scheduled for March 12, 2013, and outlines of topics to be discussed at the public hearing must be received by February 20, 2013.