IRS to conceal sensitive taxpayer data on business tax transcripts
Sensitive taxpayer data on business tax transcripts
The IRS today issued a release announcing that beginning December 13, 2020, certain information will be concealed on business tax transcripts.
The business tax transcript provides a summary of a tax return, and is often used by lenders and others to verify income and used by tax professionals in preparing returns and representing taxpayers before the IRS.
According to an IRS transmittal message, the following information will be visible on the business tax transcripts:
- Last four digits of:
- Employer identification numbers
- Social Security number
- Individual tax identification numbers
- Account numbers
- Phone numbers
- First four letters of the first and last name for anyone listed, including on the business name line (only the first three letters will be visible if the name is only four letters long)
- First six characters of the street address (including spaces)
- All dollar amounts
- The customer file number when entered on Line 5 of Form 4506-T, Request for Transcript of Tax Return, and Form 4506T-EZ.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in 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.
