IRS to Allow Masked SSNs on Form W-2

In an effort to help prevent identity theft, the Internal Revenue Service (IRS) will begin permitting employers to voluntarily truncate employees’ social security numbers (SSNs) on copies of Forms W-2, Wage and Tax Statement, that are provided to employees so that the truncated SSNs appear in the form of IRS truncated taxpayer identification numbers (TTINs) and use Xs or asterisks for the first five digits. The revised regulation applies to copies of W-2s in returns, statements and other documents required to be filed on or furnished after December 31, 2020. Truncation is not allowed on W-2s sent to the Social Security Administration or the IRS.

For more details, see the rule published in the Federal Register.