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

Reminder: Only Individuals with Tax ID Numbers Can Request Employer Identification Numbers (EIN)

NSTPEIN, Internal Revenue Service (IRS)

Reminder: Only Individuals with Tax ID Numbers Can Request Employer Identification Numbers

Reminder: Beginning May 13, only individuals with tax identification numbers may be the responsible party on an application for an Employer Identification Number (EIN). Click here for article. Background. Under Code Sec. 6109(a)(1), individuals and entities are required to include identifying numbers on returns, statements, and other documents filed with the IRS. Generally, the IRS assigns an EIN to entities for tax filing and reporting purposes. An entity may apply for an EIN using Form SS-4, Application for Employer Identification Number, or the IRS's online form. (Reg. §301.6109-1(d)(2)(i)) Procedural change. In IR 2019-58, 3/27/2019, the IRS announced that, beginning May 13, only individuals with a Social Security Number (SSN) or an individual taxpayer identification number (ITIN) may be the responsible party on an EIN application. This change prohibits entities from using their own EINs to obtain additional EINs. The new requirement applies to both the paper Form SS-4, and the IRS's online EIN applications. The new requirement will provide greater security to the EIN process by requiring an individual to be the responsible party and improve transparency. If there are changes to the responsible party, the entity can change the responsible official designation by completing Form 8822-B, Change of Address … Read More

Tax Professionals Should be Ready to Verify Their Identity when Calling the IRS

NSTPIdentity Validation, Internal Revenue Service (IRS)

Tax Professionals Should Be Ready to Verify Their Identity When Calling the IRS

Tax professionals, as well as taxpayers, who call the IRS will be asked to verify their identity. Being ready to verify identity before a call or visit can save taxpayers and tax professionals time by avoiding having to make multiple calls. Before calling, taxpayers and tax professionals should instead consider using IRS.gov to access resources like the IRS Service Guide to get faster answers to their tax questions. If a taxpayer decides to call, they should know that IRS phone assistors take great care to only discuss personal information with the taxpayer or someone the taxpayer authorizes to speak on their behalf. To make sure that taxpayers do not have to call back, the IRS reminds taxpayers to have the following information ready: Social Security numbers (SSN) and birth dates for those who were named on the tax return An Individual Taxpayer Identification Number (ITIN) letter if the taxpayer has one in lieu of a SSN Filing status – single, head of household, married filing joint or married filing separate The prior-year tax return. Telephone assistors may need to verify taxpayer identity with information from the return before answering certain questions A copy of the tax return in question Any … Read More

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