Truncated Taxpayer ID Number Regulations Finalized: Employment Law Manual Updated

Author: Rena Pirsos, XpertHR Legal Editor

Final regulations issued by the Internal Revenue Service permit the use of Truncated Taxpayer Identification Numbers (TTINs) on any federal tax-related payee statements, such as Forms 1099 and 5498, instead of a taxpayer's Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN), Adoption Taxpayer Identification Number (ATIN) or Employer Identification Number (EIN). The purpose of TTINs is to combat identity theft.

A TTIN displays only the last four digits of an individual's identifying number and is shown in the format XXX-XX-1234 or ***-**-1234. TTINs may not be used on Form W-2.

The Employment Law Manual has accordingly been updated in the Depositing and Reporting Withheld Taxes and Taxation of Employee Benefits sections.