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 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.