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.

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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.

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