Truncated Taxpayer Identification Numbers Rules – Final Regulations

NSTPIndividual Taxpayer Identification Number (ITIN), Internal Revenue Service (IRS)

Truncated Taxpayer Identification Numbers Rules Set Out

Truncated Taxpayer Identification Numbers Rules – Final Regulations The IRS has issued final regulations that amend existing regulations to permit employers to voluntarily truncate employees' social security numbers (SSNs) on Forms W-2, Wage and Tax Statement, that are furnished to employees. The final regulations do not allow truncated numbers on W-2 forms filed with the Social Security Administration (SSA). In 2014, the IRS issued final regulations authorizing the use of truncated taxpayer identification numbers (TTINs) on certain payee statements and certain other documents. The 2014 regulations were in response to concerns about the risks of identity theft, including its effect on tax administration. Prior to being amended by the Protecting Americans from Tax Hikes (PATH) Act of 2015, Code Sec. 6051(a)(2) specifically required employers to include their employees' SSNs on copies of Forms W- 2 that are furnished to employees. The PATH Act amended Code Sec. 6051(a)(2) by striking "his social security account number" from the list of information required on Form W-2 and inserting "an identifying number for the employee" instead. Because an SSN is no longer required by Code Sec. 6051, in 2017, IRS issued proposed regs to permit employers to truncate employees' SSNs to appear in the … Read More

ITINS Set to Expire

NSTPIndividual Taxpayer Identification Number (ITIN), Internal Revenue Service (IRS)

ITINS Set to Expire

ITINS Set to Expire in 2019; IRS Says Renew Early to Prevent Refund Delays Nearly 2 million Individual Taxpayer Identification Numbers (ITINs) are set to expire at the end of 2019 as the Internal Revenue Service continues to urge affected taxpayers to submit their renewal applications early to avoid refund delays next year. “We urge taxpayers with expiring ITINs to take action and renew the number as soon as possible. Renewing before the end of the year will avoid unnecessary delays related to their refunds,” said IRS Commissioner Chuck Rettig. “To help with this process, the IRS is sharing this material in multiple languages. We encourage partner groups to share this important information to reach as many people with ITINs as possible.” Under the Protecting Americans from Tax Hikes (PATH) Act, ITINs that have not been used on a federal tax return at least once in the last three consecutive years will expire December 31, 2019. In addition, ITINs with middle digits 83, 84, 85, 86 or 87 that have not already been renewed will also expire at the end of the year. These affected taxpayers who expect to file a tax return in 2020 must submit a renewal application … Read More

TAX SECURITY 101: TAX PROFESSIONALS MUST MAINTAIN, PROTECT EFINS; MONITOR EFINS, PTINS AND CAF NUMBERS

NSTPElectronic Filing Identification Number (EFIN), Fraud, Individual Taxpayer Identification Number (ITIN), Preparer Tax Identification Number (PTIN), Security, Security Summit, Uncategorized

The Internal Revenue Service and the Security Summit partners warned tax professionals that savvy cybercriminals target IRS-issued identification numbers to help impersonate practitioners as well as taxpayers.

MORE THAN 2 MILLION ITINS TO EXPIRE THIS YEAR; RENEW SOON TO AVOID REFUND DELAYS

NSTPIndividual Taxpayer Identification Number (ITIN), Internal Revenue Service (IRS), Tax Professionals, Taxpayer

With more than 2 million Individual Taxpayer Identification Numbers (ITINs) set to expire at the end of 2018, the Internal Revenue Service today urged affected taxpayers to submit their renewal applications soon to beat the rush and avoid refund delays next year. In the third year of the renewal program, the IRS has increased staffing to handle the anticipated influx of W-7 applications for renewal. This third wave of expiring ITINs is expected to affect as many as 2.7 million taxpayers. To help taxpayers, the renewal process for 2019 is beginning earlier than last year. “Even though the April tax deadline has passed, the IRS encourages people affected by these ITIN changes to take steps as soon as possible to prepare for next year’s tax returns,” said Acting IRS Commissioner David Kautter. “Acting now to renew ITIN numbers will help taxpayers avoid delays that could affect their tax filing and refunds in 2019. The IRS appreciates the help from partner groups across the nation sharing this information with those with expiring ITIN numbers.” Under the Protecting Americans from Tax Hikes (PATH) Act, ITINs that have not been used on a federal tax return at least once in the last three … Read More

IRS BEGINS ISSUING NOTICES TO TAXPAYERS WHOSE ITINS EXPIRE

NSTPIndividual Taxpayer Identification Number (ITIN), Internal Revenue Service (IRS), Taxpayer

The Internal Revenue Service began mailing letters this month to more than 1 million taxpayers with expiring Individual Taxpayer Identification Numbers and urges recipients to renew them as quickly as possible to avoid tax refund and processing delays. ITINs with middle digits 70, 71, 72 or 80 are set to expire at the end of 2017. The notice being mailed — CP-48 Notices, You must renew your Individual Taxpayer Identification Number (ITIN) to file your U.S. tax return — explains the steps taxpayers need to take to renew the ITIN if it will be included on a U.S. tax return filed in 2018. The notices will be issued over a five-week period beginning in early August. Taxpayers who receive the notice but have acted to renew their ITIN do not need to take further steps unless another family member is affected. “We urge people who receive this letter to renew their ITIN as quickly as possible to avoid tax refund and processing delays next year,” said IRS Commissioner John Koskinen. “Taking steps now and renewing early will make things go much more smoothly for ITIN holders when it comes time to file their taxes.” Under the Protecting Americans from Tax Hikes (PATH) Act, … Read More