July: Date to Remember; IRS Allows Truncated ID Numbers; and MA Amnesty Program Update

Tax Snacks

Tax Snacks: Bite-size tax news and information on the fly

Dates to remember:

September 15:

  • Third quarter estimated tax payments are due (for calendar-year entities and individuals)
  • Extended corporate, trust and partnership returns are due (for calendar-year entities)

IRS Allows Limited Presentation of Truncated Identification Numbers

One way to reduce the chance of identity theft is to reduce the number of documents that contain our Social Security Numbers (“SSN”) or other Tax Identification Numbers (“TIN”), and the IRS recently took a step in the right direction on that front. Historically, any party that was required to issue a W-2, 1099 or other similar form was also required to print the recipient’s entire SSN or TIN. Treasury Decision 9675 explains that in most instances now, the issuer can instead print only the last four digits of the recipient’s SSN or TIN. This is especially helpful because most such documents also include the recipient’s name and full address, and the more pieces of the puzzle that a thief has, the more likely an identity theft will be successful. Issuers also provide their own SSN or EINs on W-2s and 1099s, and they are not allowed to truncate their own numbers. More details can be found here.

Update – Massachusetts Amnesty Program – Short Window of Opportunity

In a recent article, Chris DeRosa informed us of a pending amnesty program in Massachusetts that was awaiting only the governor’s approval. That programs is now approved, and although details are still forthcoming that will explain the process, some of the program’s specifications are available here. Of significance is the fact that the program will run only in September and October of this year.

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