close
Share with your friends

Final regulations: Truncated TINs for wage, tax statements furnished to employees

Truncated TINs for wage, tax statements

The U.S. Treasury Department and IRS today released for publication in the Federal Register final regulations (T.D. 9861) reflecting regulatory changes to allow the use of truncated social security numbers—that is, "truncated taxpayer identification numbers" (TTINs)—on statements that employers furnish to their employees, specifically on Form W-2.

1000

Related content

According to the preamble of the final regulations [PDF 324 KB], regulations that were proposed in 2017 are adopted “without substantive changes to the content of the rules.”

However, the final regulations reflect changes to the applicability date provisions, and will apply to returns, statements, and other documents required to be filed or furnished after December 31, 2020 (except for Reg. section 31.6051-2, as amended, which addresses forms filed with the Social Security Administration and will apply as of July 3, 2019, the date of publication of the final regulations in the Federal Register).

Summary

Employers use Form W-2, Wage and Tax Statement, as provided to each employee, to show that employee’s total amount of wages and the amounts of tax deducted and withheld from those wages (and other information) for the calendar year.

Changes made under the Protecting Americans from Tax Hikes (PATH) Act of 2015, replaced a requirement that a social security number be included on a Form W-2 with a provision that “an identifying number for the employee” instead be required on Form W-2. Because a social security number is no longer required by statute, today’s final regulations permit employers to truncate the employees’ social security numbers as TTINs on copies of Forms W-2 provided to employees.

Also permitted is the use of TTINs on copies of Forms W-2 furnished to payees that report third-party sick pay as well as copies of Forms W-2 furnished to employees to report wages in the form of group-term life insurance.

Regulations proposed in September 2017, and finalized today, clarify that employers may not truncate an employee’s social security number to appear in the form of a TTIN on a copy of a Form W-2 that is filed with the Social Security Administration. 

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal