[vc_row][vc_column width=”1/1″][vc_column_text]Effective July 15th, 2014, the US Department of the Treasury has ruled to allow tax identity number truncation, also known as “SSN Masking”, or “SSN Truncation” to be used on all tax return forms, to protect user identities. This includes not only 1099-MISC forms, but also W-2 forms. Masking may be applied not only to social security numbers (SSN), but also employer identification numbers (EIN).
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This is a huge boon to contractors, employees and employers, who can now protect W-2 and 1099-MISC recipients from tax return fraud which stems from having SSN and EIN data stolen from the mail. For employers, this allows the opportunity to remove liability for having contractors’ and employees’ tax ID information stolen from the recipient forms they’ve mailed.
Read the details of the new law in the official documents below.
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