09/21/2017

IRS Proposes Security Change to W-2 Tax Form

The goal of the change is to protect employees from identify theft

The Internal Revenue Service (IRS) has proposed obscuring employee Social Security numbers on the W-2 form. A public comment period will be open until Dec. 18, 2017. In the proposal, the first five digits would be obscured or replaced with a symbol. The final four digits will remain clear.  

The goal of the change is to protect employees from identify theft. If the change is implemented, the IRS plans to incorporate this into forms and instructions. Employers will be permitted to use a TTIN (truncated taxpayer identification numbers) on the employee’s copy of the report. This rule was published in the Sept. 20 edition of the Federal Register. For more information, view the IRS notice here. 

This article was provided to OSAE by the Power of A and ASAE's Inroads.