IRS Truncated Taxpayer Identification Numbers, 41127-41132 [2014-16464]
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Federal Register / Vol. 79, No. 135 / Tuesday, July 15, 2014 / Rules and Regulations
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Food and Drug Administration
21 CFR Parts 106 and 107
[Docket No. FDA–1995–N–0063 (formerly
95N–0309)]
RIN 0910–AF27
Current Good Manufacturing Practices,
Quality Control Procedures, Quality
Factors, Notification Requirements,
and Records and Reports, for Infant
Formula; Correction
AGENCY:
Food and Drug Administration,
HHS.
ACTION:
Final rule; correction.
The Food and Drug
Administration (FDA or we) is
correcting a final rule that appeared in
the Federal Register of June 10, 2014.
The final rule revised our infant formula
regulations by establishing requirements
for current good manufacturing
practices, including audits; establishing
requirements for quality factors; and
amending our quality control
procedures, notification, and record and
reporting requirements for infant
formula. We issued the final rule to
provide greater protection of infants
who consume infant formula products.
In this document, we correct some
errors that appeared in the preamble to
the final rule.
DATES: Effective July 15, 2014.
FOR FURTHER INFORMATION CONTACT:
Leila Beker, Office of Nutrition,
Labeling, and Dietary Supplements
(HFS–850), Center for Food Safety and
Applied Nutrition, Food and Drug
Administration, 5100 Paint Branch
Pkwy., College Park, MD 20740, 240–
402–1451.
SUPPLEMENTARY INFORMATION: In FR Doc.
2014–13384, appearing on page 33057
in the Federal Register of June 10, 2014
(79 FR 33057), we make the following
corrections:
1. On pages 33057–33058, under FOR
FURTHER INFORMATION CONTACT the
contact information is changed to read,
‘‘Leila Beker, Office of Nutrition,
Labeling, and Dietary Supplements
(HFS–850), Center for Food Safety and
Applied Nutrition, Food and Drug
Administration, 5100 Paint Branch
Pkwy., College Park, MD 20740, 240–
402–1451.’’
2. On page 33062, in the third
column, in Comment 9, ‘‘45 °F (F)’’ is
corrected to read ‘‘45 °F.’’
3. On page 33063, in the third
column, in Comment 13, the preamble
stated, ‘‘The comment requested that,
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SUMMARY:
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with regard to the requirements of
§ 106.35, we announce the exercise of
enforcement discretion or a formal delay
for this provision to align with the
compliance date for eligible infant
formulas. Nonetheless, with the
exception of the compliance date for
certain requirements related to quality
factors for eligible infant formulas, the
final rule adopts a compliance date of
September 8, 2014 to facilitate
manufacturer compliance with all
requirements of this final rule.’’ We are
correcting this passage to read, ‘‘The
comment requested that, with regard to
the requirements of § 106.35, we
announce the exercise of enforcement
discretion, a delayed compliance date,
or a formal delay for this provision to
align with the compliance date for
eligible infant formulas.’’
4. On page 33063, in the third
column, in the Response to Comment
13, the preamble stated, ‘‘We therefore
decline the request to announce the
exercise of enforcement discretion, a
delayed compliance date, or a formal
delay for this provision to align with the
compliance date for eligible infant
formulas.’’ We are correcting this
passage to read, ‘‘We therefore decline
the request to announce the exercise of
enforcement discretion or a formal delay
for this provision to align with the
compliance date for eligible infant
formulas. Nonetheless, with the
exception of the compliance date for
certain requirements related to quality
factors for eligible infant formulas, the
final rule adopts a compliance date of
September 8, 2014, to facilitate
manufacturer compliance with all
requirements of this final rule.’’
Dated: July 9, 2014.
Leslie Kux,
Assistant Commissioner for Policy.
[FR Doc. 2014–16476 Filed 7–14–14; 8:45 am]
BILLING CODE 4164–01–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1 and 301
[TD 9675]
RIN 1545–BJ16
IRS Truncated Taxpayer Identification
Numbers
Internal Revenue Service (IRS),
Treasury.
ACTION: Final regulations.
AGENCY:
This document contains final
regulations regarding an IRS truncated
SUMMARY:
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41127
taxpayer identification number, or a
TTIN. Where not prohibited by the
Internal Revenue Code, applicable
regulations, other guidance published in
the Internal Revenue Bulletin, forms, or
instructions, these regulations allow use
of a TTIN in lieu of a taxpayer’s social
security number (SSN), IRS individual
taxpayer identification number (ITIN),
IRS adoption taxpayer identification
number (ATIN), or employer
identification number (EIN) on payee
statements and certain other documents.
The TTIN displays only the last four
digits of a taxpayer identifying number;
either asterisks (*) or Xs replace the first
five digits of the identifying number.
These regulations affect persons that
furnish or receive payee statements and
other documents that the Internal
Revenue Code, regulations, or other
published guidance requires to be
furnished to another person to the
extent that a TTIN may appear in lieu
of the SSN, ITIN, ATIN, or EIN of the
payee or document recipient.
DATES: Effective Date: These regulations
are effective on July 15, 2014.
Applicability Date: For dates of
applicability see §§ 1.6042–4(g), 1.6043–
4(i), 1.6044–5(d), 1.6045–2(i), 1.6045–
3(g), 1.6045–4(s), 1.6045–5(h), 1.6049–
6(e)(5), 1.6050A–1(e), 1.6050E–1(m),
1.6050N–1(e), 1.6050P–1(h), 1.6050S–
1(f), 1.6050S–3(g), and 301.6109–4(c).
FOR FURTHER INFORMATION CONTACT:
Jacqueline K. Queener, (202) 317–6844
(not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
This document amends the Income
Tax Regulations (26 CFR part 1) and the
Procedure and Administration
Regulations (26 CFR part 301) to
authorize filers of information returns to
truncate a payee’s or other person’s
nine-digit identifying number on payee
statements and certain other documents.
The goal of these amendments is to
reduce the risk of identity theft that may
stem from the inclusion of a taxpayer’s
entire identifying number on a payee
statement or other document.
Concerned about the risks of identity
theft, including its effect on tax
administration, the IRS established a
pilot program allowing filers of
information returns who met certain
requirements to truncate an individual
payee’s identifying number on paper
payee statements (Forms 1098, 1099,
and 5498) for calendar years 2009 and
2010. See Notice 2009–93, 2009–51 IRB
863. The IRS subsequently extended the
pilot program for payee statements for
calendar years 2011 and 2012, and
modified the program by removing the
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Form 1098–C from the list of eligible
documents on which a TTIN can be
used because it is an acknowledgement
under section 170(f)(12) rather than a
payee statement. See Notice 2011–38,
2011–20 IRB 784.
On January 7, 2013, the Treasury
Department and the IRS published a
notice of proposed rulemaking (REG–
148873–09) in the Federal Register, 78
FR 913, establishing an IRS truncated
taxpayer identification number, a TTIN,
and setting forth guidelines for its use.
The scope of the proposed regulations
mirrored that of the pilot project as
reflected in Notice 2011–38 with one
exception made in conformance with
comments received in response to the
pilot program: The proposed regulations
permitted use of a TTIN on electronic
payee statements in addition to paper
payee statements. A public hearing was
scheduled for March 12, 2013. One
request to testify at the public hearing
was received but later withdrawn, and
the public hearing was cancelled.
Eleven written comments responding to
the NPRM were received and are
available for public inspection at https://
www.regulations.gov or upon request.
After consideration of all the comments,
the proposed regulations are adopted as
amended by this Treasury decision. The
amendments are discussed in the next
section.
Summary of Comments and
Explanation of Revisions
While comments received in response
to the NPRM overwhelmingly supported
the proposed regulations, one
commenter recommended against
finalizing the proposed regulations
because he failed to see the benefit of a
TTIN and believed issuance of a TTIN
would use funds for a structure that
already exists. As defined in
§ 301.6109–4(a) of the proposed
regulations, a TTIN is simply a method
for partially masking taxpayer
identifying numbers that already exist.
Use of a TTIN does not require issuance
of a new number and no funds will be
expended for that purpose. The
Treasury Department and the IRS
believe that the truncation of TINs will
reduce the risk of identity theft.
Therefore, the final regulations do not
adopt this recommendation.
Almost all commenters recommended
allowing use of a TTIN in place of an
EIN. Some commenters stated that, due
to technical constraints or incomplete
data records, many filers could not
segregate payees with EINs from payees
with individual taxpayer identifying
numbers (SSNs, ITINs, and ATINs) that
could be truncated under the proposed
regulations. Therefore, these filers were
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not able to use TTINs at all. Other
commenters stated that small businesses
and closely-held entities have the same
privacy concerns that individuals have,
and should be granted the same benefits
in protecting their identifying
information. In light of these comments,
the Treasury Department and the IRS
believe that allowing truncated EINs
will encourage filers to use TTINs for all
payees and will further reduce risk of
identity theft. Accordingly, § 301.6109–
4 of the final regulations permits
truncation of EINs.
Most commenters recommended
expanding the authorization to use a
TTIN on more documents than just
payee statements in the Forms 1098,
1099, and 5498 series. Commenters
specifically recommended that the IRS
consider allowing a TTIN to be used on
a grantor trust letter as required by
§ 1.671–4(b); a widely held fixed
investment trust (WHFIT) statement as
required by § 1.671–5(e); a copy of a
Schedule K–1 issued to a partner,
shareholder, or beneficiary under
section 6012(a)(4), 6031(a)–(b), 6034A,
or 6037(b); any Form 1097 series return;
a Form 2439 ‘‘Notice to Shareholder of
Undistributed Long-Term Capital
Gains’’; or any other payee statement.
Under the proposed regulations, use
of a TTIN was permitted only if
affirmatively authorized by the IRS.
Commenters expressed concern that
allowing TTINs to be used only when
authorized unduly limits the documents
on which TTINs may be used, which in
turn reduces the effect of using TTINs
to help combat identity theft. Continued
use of this approach would impose an
administrative burden on IRS to keep
updated the list of documents on which
TTINs are permitted. The commenters
suggested that allowing TTINs to be
used unless prohibited would address
these concerns. The Treasury
Department and the IRS agree that
TTINs should be permitted on most
documents that the internal revenue
laws require to be provided to payees
and other persons. Accordingly, the
final regulations permit use of a TTIN
on any federal tax-related payee
statement or other document required to
be furnished to another person unless
prohibited by the Internal Revenue
Code, regulations, other guidance
published in the Internal Revenue
Bulletin, forms, or instructions.
Under this modified approach, there
is no need to amend every information
reporting regulation to permit the use of
a TTIN. However, it may be unclear
whether language in certain regulations
could be interpreted as requiring use of
an unmasked SSN, ITIN, ATIN, or EIN,
thereby prohibiting use of a TTIN.
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Accordingly, to avoid confusion, the
final regulations retain the provisions in
the proposed regulations that amend
specific information reporting
regulations that contained language that
could be interpreted as specifically
requiring use of an unmasked SSN,
ITIN, ATIN, or EIN.
One commenter recommended
allowing use of TTINs on Form 3520,
Annual Return To Report Transactions
With Foreign Trusts and Receipts of
Certain Foreign Gifts, and Form 3520A,
Annual Information Return of Foreign
Trust With a U.S. Owner (Under Section
6048(b)). Taxpayer identifying numbers
on returns and statements filed with the
IRS are necessary for the IRS to
determine compliance with the tax laws
and to validate the information
provided. Therefore, the final
regulations retain the rule in the
proposed regulations that TTINs may
not be used on a return filed with the
IRS. Accordingly, because Forms 3520
and 3520A are returns required to be
filed with the IRS this recommendation
is not adopted.
Consistent with the approach adopted
in the final regulations, the regulations
were revised to list the circumstances
where use of a TTIN is not permitted.
Under § 301.6109–4(b)(2), a TTIN may
not be used (1) where prohibited by
statute, regulation, other guidance
published in the Internal Revenue
Bulletin, form, or instructions; (2) where
a statute, regulation, other guidance
published in the Internal Revenue
Bulletin, form, or instructions,
specifically requires use of an SSN,
ITIN, ATIN, or EIN; or (3) on any return
or statement required to be filed with,
or furnished to, the IRS. Further, a
person may not truncate its own
taxpayer identification number on any
tax form, statement, or other document
that person furnishes to another person.
For example, an employer cannot use a
TTIN in place of its EIN on a Form W–
2, Wage and Tax Statement, that the
employer furnishes to an employee; and
a person may not use a TTIN in place
of its TIN on a Form W–9, Request for
Taxpayer Identification Number and
Certification.
An example was added to § 301.6109–
4 of the regulations to illustrate the
operation of the revised rule. In
addition, because use of a TTIN is not
limited by type of form, the definitions
set forth in § 301.6109–4(b) of the
proposed regulations are no longer
necessary and have been deleted from
the final regulations.
Because a TTIN is a permissible
method of displaying the taxpayer
identifying number, use of a TTIN when
permitted by § 301.6109–4 of the final
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regulations satisfies the requirement to
include a taxpayer identifying number
on a document or statement. To
eliminate any potential confusion,
§ 301.6109–4(b) of the final regulations
is amended to state that use of a TTIN
as permitted in these regulations will
not result in application of any penalty
(e.g., a penalty under section 6722 for
failure to timely furnish a correct
statement) for failure to include a
taxpayer identifying number on any
payee statement or other document.
Section 301.6109–4 of the final
regulations is effective July 15, 2014.
The amendments to the specific
information reporting regulations are
generally effective for payee statements
due after December 31, 2014. As stated
in the proposed TTIN regulations,
taxpayers were allowed to rely on the
rules in the proposed regulations prior
to publication of these final regulations.
Finally, modifications have been made
to the effective date sections of some of
these information reporting regulations
to remove outdated references.
Special Analyses
It has been determined that these
regulations are not a significant
regulatory action as defined in
Executive Order 12866, as
supplemented by Executive Order
13563. Therefore, a regulatory
assessment is not required. It also has
been determined that section 553(b) of
the Administrative Procedure Act (5
U.S.C. chapter 5) does not apply to these
regulations, and, because the regulations
do not impose a collection of
information on small entities, the
Regulatory Flexibility Act (5 U.S.C.
chapter 6) does not apply. Pursuant to
section 7805(f) of the Code, the notice
of proposed rulemaking that preceded
these final regulations was submitted to
the Chief Counsel for Advocacy of the
Small Business Administration for
comment on its impact on small
business, and no comments were
received.
Drafting Information
The principal author of the final
regulations is Jacqueline Queener,
Office of the Associate Chief Counsel
(Procedure and Administration).
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List of Subjects
26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
26 CFR Part 301
Employment taxes, Estate taxes,
Excise taxes, Gift taxes, Income taxes,
Penalties, Reporting and recordkeeping
requirements.
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Adoption of Amendments to the
Regulations
Accordingly, 26 CFR parts 1 and 301
are amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The general authority
citation for part 1 continues to read as
follows:
■
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.6042–4 is amended
by revising paragraphs (b) and (g) to
read as follows:
■
§ 1.6042–4 Statements to recipients of
dividend payments.
*
*
*
*
*
(b) Form and content of the statement.
The statement required by paragraph (a)
of this section must be either the official
Form 1099 prescribed by the Internal
Revenue Service for the respective
calendar year or an acceptable substitute
statement that contains provisions that
are substantially similar to those of the
official Form 1099 for the respective
calendar year. For further guidance on
how to prepare an acceptable substitute
statement, see Rev. Proc. 2012–38,
2012–48 IRB 575, also published as
Publication 1179, ‘‘General Rules and
Specifications for Substitute Forms
1096, 1098, 1099, 5498, and Certain
Other Information Returns,’’ or any
successor guidance. An IRS truncated
taxpayer identifying number (TTIN)
may be used as the identifying number
of the recipient. For provisions relating
to the use of TTINs, see § 301.6109–4 of
this chapter (Procedure and
Administration Regulations).
*
*
*
*
*
(g) Effective/applicability date. This
section is effective for payee statements
due after December 31, 1995, without
regard to extensions. The amendments
to paragraph (b) are effective for payee
statements due after December 31, 2014.
For payee statements due before January
1, 2015, § 1.6042–4(b) (as contained in
26 CFR part 1, revised April 2013) shall
apply.
■ Par. 3. Section 1.6043–4 is amended
by:
■ 1. Adding two new sentences to the
end of paragraph (b)(4).
■ 2. Revising the heading and adding
two new sentences to the end of
paragraph (i).
The revision and additions read as
follows:
§ 1.6043–4 Information returns relating to
certain acquisitions of control and changes
in capital structure.
*
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*
(b) * * *
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(4) * * * An IRS truncated taxpayer
identifying number (TTIN) may be used
as the identifying number of the
shareholder in lieu of the identifying
number appearing on the Form 1099–
CAP filed with the Internal Revenue
Service. For provisions relating to the
use of TTINs, see § 301.6109–4 of this
chapter (Procedure and Administration
Regulations).
*
*
*
*
*
(i) Effective/applicability date.* * *
The amendments to paragraph (b)(4) are
effective for any Form 1099–CAP
required to be furnished after December
31, 2014. For any Form 1099–CAP
required to be furnished before January
1, 2015, § 1.6043–4(b) (as contained in
26 CFR part 1, revised April 2013) shall
apply.
■ Par. 4. Section 1.6044–5 is amended
by:
■ 1. Adding two new sentences to the
end of paragraph (b).
■ 2. Revising paragraph (d).
The addition and revision read as
follows:
§ 1.6044–5 Statements to recipients of
patronage dividends.
*
*
*
*
*
(b) * * * An IRS truncated taxpayer
identifying number (TTIN) may be used
as the identifying number of the
recipient in lieu of the identifying
number appearing on the corresponding
information return filed with the
Internal Revenue Service. For
provisions relating to the use of TTINs,
see § 301.6109–4 of this chapter
(Procedure and Administration
Regulations).
*
*
*
*
*
(d) Effective/applicability date. This
section is effective for payee statements
due after December 31, 1995, without
regard to extensions. The amendments
to paragraph (b) are effective for payee
statements due after December 31, 2014.
For payee statements due before January
1, 2015, § 1.6044–5(b) (as contained in
26 CFR part 1, revised April 2013) shall
apply.
■ Par. 5. Section 1.6045–2 is amended
by:
■ 1. Adding two new sentences to the
end of paragraph (c).
■ 2. Revising the heading and adding
two new sentences after the first
sentence of paragraph (i).
The revision and additions read as
follows:
§ 1.6045–2 Furnishing statement required
with respect to certain substitute payments.
*
*
*
*
*
(c) * * * An IRS truncated taxpayer
identifying number (TTIN) may be used
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as the identifying number of the
customer in lieu of the identifying
number appearing on the information
return filed with the Internal Revenue
Service. For provisions relating to the
use of TTINs, see § 301.6109–4 of this
chapter (Procedure and Administration
Regulations).
*
*
*
*
*
(i) Effective/applicability date. * * *
The amendments to paragraph (c) apply
to payee statements due after December
31, 2014. For payee statements due
before January 1, 2015, § 1.6045–2(c) (as
contained in 26 CFR part 1, revised
April 2013) shall apply. * * *
■ Par. 6. Section 1.6045–3 is amended
by:
■ 1. Adding two new sentences to the
end of paragraph (e)(1).
■ 2. Revising the heading and adding
two new sentences to the end of
paragraph (g).
The revision and additions read as
follows:
§ 1.6045–3 Information reporting for an
acquisition of control or a substantial
change in capital structure.
*
*
*
*
*
(e) * * *
(1) * * * An IRS truncated taxpayer
identifying number (TTIN) may be used
as the identifying number of the
customer. For provisions relating to the
use of TTINs, see § 301.6109–4 of this
chapter (Procedure and Administration
Regulations).
*
*
*
*
*
(g) Effective/applicability date. * * *
The amendments to paragraph (e)(1)
apply to payee statements due after
December 31, 2014. For payee
statements due before January 1, 2015,
§ 1.6045–3(e)(1) (as contained in 26 CFR
part 1, revised April 2013) shall apply.
■ Par. 7. Section 1.6045–4 is amended
by:
■ 1. Revising paragraph (m)(1).
■ 2. Adding two new sentences to the
end of paragraph (s).
The revision and addition read as
follows:
§ 1.6045–4 Information reporting on real
estate transactions with dates of closing on
or after January 1,1991.
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*
*
*
*
*
(m) * * *
(1)(i) Requirement of furnishing
statements. A reporting person who is
required to make a return of information
under paragraph (a) of this section shall
furnish to the transferor whose TIN is
required to be shown on the return a
written statement of the information
required to be shown on such return.
The written statement must bear either
the legend shown on the recipient copy
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of Form 1099 or the following: ‘‘This is
important tax information and is being
furnished to the Internal Revenue
Service. If you are required to file a
return, a negligence penalty or other
sanction may be imposed on you if this
item is required to be reported and the
IRS determines that it has not been
reported.’’
(ii) This requirement may be satisfied
by furnishing to the transferor a copy of
a completed Form 1099 (or substitute
Form 1099 that complies with current
revenue procedures). An IRS truncated
taxpayer identifying number (TTIN)
may be used as the identifying number
of the transferor in lieu of the
identifying number appearing on the
information return filed with the
Internal Revenue Service. For
provisions relating to the use of TTINs,
see § 301.6109–4 of this chapter
(Procedure and Administration
Regulations).
(iii) In the case of a real estate
transaction for which a Uniform
Settlement Statement is used, this
requirement also may be satisfied by
furnishing to the transferor a copy of a
completed statement that is modified to
comply with the requirements of this
paragraph (m), and by designating on
the Uniform Settlement Statement the
items of information (such as gross
proceeds or allocated gross proceeds)
required to be set forth on the Form
1099. For purposes of this paragraph
(m), a statement shall be considered
furnished to a transferor if it is given to
the transferor in person, either at the
closing or thereafter, or is mailed to the
transferor at the transferor’s last known
address.
*
*
*
*
*
(s) * * * The amendments to
paragraph (m)(1) apply to payee
statements due after December 31, 2014.
For payee statements due before January
1, 2015, § 1.6045–4(m)(1) (as contained
in 26 CFR part 1, revised April 2013)
shall apply.
■ Par. 8. Section 1.6045–5 is amended
by:
■ 1. Adding two new sentences before
the last sentence of paragraph (a)(3)(i).
■ 2. Revising the heading and adding
two new sentences to the end of
paragraph (h).
The revision and additions read as
follows:
§ 1.6045–5 Information reporting on
payments to attorneys.
(a) * * *
(3) * * *
(i) * * * An IRS truncated taxpayer
identifying number (TTIN) may be used
as the identifying number of the
attorney in lieu of the identifying
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number appearing on the information
return filed with the Internal Revenue
Service. For provisions relating to the
use of TTINs, see § 301.6109–4 of this
chapter (Procedure and Administration
Regulations). * * *
*
*
*
*
*
(h) Effective/applicability date. * * *
The amendments to paragraph (a)(3)(i)
apply to payee statements due after
December 31, 2014. For payee
statements due before January 1, 2015,
§ 1.6045–5(a)(3)(i) (as contained in 26
CFR part 1, revised April 2013) shall
apply.
■ Par. 9. Section 1.6049–6 is amended
by:
■ 1. Adding paragraph (b)(3).
■ 2. Adding a new sentence at the
beginning of paragraph (e)(5).
The additions read as follows:
§ 1.6049–6 Statements to recipients of
interest payments and holders of
obligations for attributed original issue
discount.
*
*
*
*
*
(b) * * *
(3) With respect to both statements to
persons receiving payments of interest
and persons holding obligations, the
statement shall include the name,
address, and taxpayer identifying
number of such person. An IRS
truncated taxpayer identifying number
(TTIN) may be used as the identifying
number for the person. For provisions
relating to the use of TTINs, see
§ 301.6109–4 of this chapter (Procedure
and Administration Regulations).
*
*
*
*
*
(e) * * *
(5) Effective/applicability date.
Paragraph (b)(3) applies to payee
statements due after December 31, 2014.
* * *
■ Par. 10. Section 1.6050A–1 is
amended by:
■ 1. Adding two new sentences to the
end of paragraph (c)(1).
■ 2. Adding paragraph (e).
The additions read as follows:
§ 1.6050A–1 Reporting requirements of
certain fishing boat operators.
*
*
*
*
*
(c) * * *
(1) * * * An IRS truncated taxpayer
identifying number (TTIN) may be used
as the identifying number for the
individual in lieu of the identifying
number appearing on the information
return filed with the Internal Revenue
Service. For provisions relating to the
use of TTINs, see § 301.6109–4 of this
chapter (Procedure and Administration
Regulations).
*
*
*
*
*
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Federal Register / Vol. 79, No. 135 / Tuesday, July 15, 2014 / Rules and Regulations
(e) Effective/applicability date. The
rules in this section apply to
information returns and payee
statements due after December 31, 2014.
For rules applicable for information
returns and payee statements due before
January 1, 2015, § 1.6050A–1(c)(1) (as
contained in 26 CFR part 1, revised
April 2013) shall apply.
■ Par. 11. Section 1.6050E–1 is
amended by:
■ 1. Adding two new sentences to the
end of paragraph (k)(1).
■ 2. Revising the heading and adding
two new sentences to the end of
paragraph (m).
The revision and additions read as
follows:
§ 1.6050E–1 Reporting of State and local
income tax refunds.
*
*
*
*
*
(k) * * *
(1) * * * An IRS truncated taxpayer
identifying number (TTIN) may be used
as the identifying number of the
individual in lieu of the identifying
number appearing on the information
return filed with the Internal Revenue
Service. For provisions relating to the
use of TTINs, see § 301.6109–4 of this
chapter (Procedure and Administration
Regulations).
*
*
*
*
*
(m) Effective/applicability date.* * *
The amendments to paragraph (k)(1)
apply to payee statements due after
December 31, 2014. For payee
statements due before January 1, 2015,
§ 1.6050E–5(k)(1) (as contained in 26
CFR part 1, revised April 2013) shall
apply.
■ Par. 12. Section 1.6050N–1 is
amended by:
■ 1. Adding two new sentences to the
end of paragraph (b).
■ 2. Revising paragraph (e).
The addition and revision read as
follows:
§ 1.6050N–1 Statements to recipients of
royalties paid after December 31, 1986.
wreier-aviles on DSK5TPTVN1PROD with RULES
*
*
*
*
*
(b) * * * An IRS truncated taxpayer
identifying number (TTIN) may be used
as the identifying number of the
recipient. For provisions relating to the
use of TTINs, see § 301.6109–4 of this
chapter (Procedure and Administration
Regulations).
*
*
*
*
*
(e) Effective/applicability date. This
section applies to payee statements due
after December 31, 2014, without regard
to extensions. For payee statements due
before January 1, 2015, § 1.6050N–1 (as
contained in 26 CFR part 1, revised
April 2013) shall apply.
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15:12 Jul 14, 2014
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Par. 13. Section 1.6050P–1 is
amended by:
■ 1. Removing ‘‘section;’’ from
paragraph (f)(1)(i) and adding ‘‘section.’’
in its place.
■ 2. Adding two new sentences to the
end of paragraph (f)(1)(i).
■ 3. Revising paragraph (h).
The addition and revisions read as
follows:
■
§ 1.6050P–1 Information reporting for
discharges of indebtedness by certain
entities.
*
*
*
*
*
(f) * * *
(1) * * *
(i) * * * An IRS truncated taxpayer
identifying number (TTIN) may be used
as the TIN of the person for whom there
was an identifiable event in lieu of the
identifying number appearing on the
information return filed with the
Internal Revenue Service. For
provisions relating to the use of TTINs,
see § 301.6109–4 of this chapter
(Procedure and Administration
Regulations);
*
*
*
*
*
(h) Effective/applicability date. This
section applies to discharges of
indebtedness after December 31, 2013.
For discharges of indebtedness before
January 1, 2014, § 1.6050P–1 (as
contained in 26 CFR part 1, revised
April 2013) shall apply.
■ Par. 14. Section 1.6050S–1 is
amended by:
■ 1. Removing ‘‘section;’’ from
paragraph (c)(1)(i) and adding ‘‘section.’’
in its place.
■ 2. Adding two new sentences to the
end of paragraph (c)(1)(i).
■ 3. Revising the heading and adding
two new sentences to the end of
paragraph (f).
The revision and additions read as
follows:
§ 1.6050S–1 Information reporting for
qualified tuition and related expenses.
*
*
*
*
*
(c) * * *
(1) * * *
(i) * * * An IRS truncated taxpayer
identifying number (TTIN) may be used
as the TIN of the individual in lieu of
the identifying number appearing on the
information return filed with the
Internal Revenue Service. For
provisions relating to the use of TTINs,
see § 301.6109–4 of this chapter
(Procedure and Administration
Regulations);
*
*
*
*
*
(f) Effective/applicability date.* * *
Paragraph (c)(1)(i) applies to payee
statements due after December 31, 2014.
For payee statements due before January
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Sfmt 4700
41131
1, 2015, § 1.6050S–1 (as contained in 26
CFR part 1, revised April 2013) shall
apply.
■ Par. 15. Section 1.6050S–3 is
amended by:
■ 1. Removing ‘‘section;’’ from
paragraph (d)(1)(i) and adding
‘‘section.’’ in its place.
■ 2. Adding two new sentences to the
end of paragraph (d)(1)(i).
■ 3. Revising paragraph (g).
The addition and revisions read as
follows:
§ 1.6050S–3 Information reporting for
payments of interest on qualified education
loans.
*
*
*
*
*
(d) * * *
(1) * * *
(i) * * * An IRS truncated taxpayer
identifying number (TTIN) may be used
as the TIN of the payor in lieu of the
identifying number appearing on the
information return filed with the
Internal Revenue Service. For
provisions relating to the use of TTINs,
see § 301.6109–4 of this chapter
(Procedure and Administration
Regulations).
*
*
*
*
*
(g) Effective/applicability date. The
rules of this section apply to
information returns required to be filed,
and payee statements required to be
furnished after December 31, 2014. For
information returns required to be filed,
and payee statements required to be
furnished before January 1, 2015,
§ 1.6050S–3 (as contained in 26 CFR
part 1, revised April 2013) shall apply.
PART 301—PROCEDURE AND
ADMINISTRATION
Par. 16. The authority citation for part
301 continues to read as follows:
■
Authority: 26 U.S.C. 7805 * * *
Par. 17. Section 301.6109–4 is added
to read as follows:
■
§ 301.6109–4 IRS truncated taxpayer
identification numbers.
(a) In general— Definition. An IRS
truncated taxpayer identification
number (TTIN) is an individual’s social
security number (SSN), IRS individual
taxpayer identification number (ITIN),
IRS adoption taxpayer identification
number (ATIN), or IRS employer
identification number (EIN) in which
the first five digits of the nine-digit
number are replaced with Xs or
asterisks. The TTIN takes the same
format of the identifying number it
replaces, for example XXX–XX–1234
when replacing an SSN, or XX–
XXX1234 when replacing an EIN.
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(b) Use of a TTIN. (1) In general.
Except as provided in paragraph (b)(2)
of this section, a TTIN may be used to
identify any person on any statement or
other document that the internal
revenue laws require to be furnished to
another person. Use of a TTIN is
permissive and not mandatory. Use of a
TTIN as permitted by this section will
not result in application of any penalty
for failure to include a correct taxpayer
identifying number on any payee
statement or other document. For
example, the section 6722 penalty for
failure to timely furnish a correct
statement would not apply solely
because the payor used a TTIN as
permitted by this section.
(2) TTIN not permitted. Use of a TTIN
is not permitted in the following
circumstances:
(i) A TTIN may not be used on a
statement or other document if such use
is prohibited by statute, regulation,
other guidance published in the Internal
Revenue Bulletin, form, or instructions.
(ii) A TTIN may not be used on a
statement or document if a statute,
regulation, other guidance published in
the Internal Revenue Bulletin, form, or
instructions, specifically requires use of
a SSN, ITIN, ATIN, or EIN. For example,
a TTIN may not be used on a Form W–
8ECI or Form W–8IMY because the
forms and/or form instructions
specifically prescribe use of an SSN,
EIN, or ITIN for the U.S. taxpayer
identification number.
(iii) A TTIN may not be used on any
return, statement, or other document
that is required to be filed with or
furnished to the Internal Revenue
Service.
(iv) A person may not truncate its
own taxpayer identifying number on
any statement or other document that it
furnishes to another person. For
example, an employer may not truncate
its EIN on a Form W–2, Wage and Tax
Statement, that the employer furnishes
to an employee; and a person may not
truncate its TIN on a Form W–9,
Request for Taxpayer Identification
Number and Certification.
(3) Example. The provisions of
paragraph (a) are illustrated by the
following example:
Example. On April 5, year 1, Donor
contributes a used car with a blue book value
of $1100 to Charitable Organization. On April
20, year 1, Charitable Organization sends
Donor copies B and C of the Form 1098–C
as a contemporaneous written
acknowledgement of the $1100 contribution
as required by section 170(f)(12). In lateFebruary, year 2, Charitable Organization
prepares and files copy A of Form 1098–C
with the IRS, reporting Donor’s donation of
a qualified vehicle in year 1. The Charitable
VerDate Mar<15>2010
15:12 Jul 14, 2014
Jkt 232001
Organization may use a TTIN in lieu of
Donor’s complete SSN in the Donor’s
Identification Number box on copies B and
C of the Form 1098–C because copies B and
C of the Form 1098–C are documents
required by the Internal Revenue Code and
regulations to be furnished to another person,
there are no applicable statutes, regulations,
other published guidance, forms or
instructions, that prohibit the use of a TTIN
on those copies, and, there are no applicable
statutes, regulations, other published
guidance, forms, or instructions that
specifically require use of an SSN or other
identifying number on those copies. A TTIN
cannot be used on copy A of the Form 1098–
C, however, because copy A is required to be
filed with the IRS.
(c) Effective/applicability date. This
section applies on and after July 15,
2014.
John Dalrymple,
Deputy Commissioner for Services and
Enforcement.
Approved: May 30, 2014.
Mark J. Mazur,
Assistant Secretary of the Treasury (Tax
Policy).
[FR Doc. 2014–16464 Filed 7–14–14; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 301
[TD 9677]
RIN 1545–BL60
Disclosures of Return Information
Reflected on Returns to Officers and
Employees of the Department of
Commerce for Certain Statistical
Purposes and Related Activities
Internal Revenue Service (IRS),
Treasury.
ACTION: Temporary regulations.
AGENCY:
This document contains
temporary regulations that authorize the
disclosure of certain items of return
information to the Bureau of the Census
(Bureau) pursuant to section 6103(j)(1)
of the Internal Revenue Code (Code).
The temporary regulations are made
pursuant to a request from the Secretary
of Commerce. These regulations require
no action by taxpayers and have no
effect on their tax liabilities. Thus, no
taxpayers are likely to be affected by the
disclosures authorized by this guidance.
The text of the temporary regulations
also serves as the text of the proposed
regulations set forth in the Proposed
Rules section in this issue of the Federal
Register.
SUMMARY:
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Frm 00048
Fmt 4700
Sfmt 4700
Effective date: These regulations
are effective on July 15, 2014.
Applicability date: For dates of
applicability, see § 301.6103(j)(1)–1T(e).
FOR FURTHER INFORMATION CONTACT:
Melissa Avrutine, (202) 317–6833 (not a
toll-free number).
SUPPLEMENTARY INFORMATION:
DATES:
Background
This document contains amendments
to 25 CFR part 301. Section 6103(j)(1)(A)
authorizes the Secretary of Treasury to
furnish, upon written request by the
Secretary of Commerce, such return or
return information as the Secretary of
Treasury may prescribe by regulation to
officers and employees of the Bureau for
the purpose of, but only to the extent
necessary in, the structuring of censuses
and conducting related statistical
activities authorized by law. Section
301.6103(j)(1)–1 of the existing
regulations further defines such
purposes by reference to 13 U.S.C.
chapter 5 and provides an itemized
description of the return information
authorized to be disclosed for such
purposes.
By letter dated May 10, 2013, the
Secretary of Commerce requested that
additional items of return information
be disclosed to the Bureau for the
structuring of the decennial census.
Specifically, the Secretary of Commerce
requested disclosure of the following
additional items: (1) From Form 1040,
‘‘U.S. Individual Income Tax Return,’’
processing: Electronic Filing System
Indicator, Return Processing Indicator,
and Paid Preparer Code and (2) From
Form 1098, ‘‘Mortgage Interest
Statement’’: Payee/Payer/Employee
Taxpayer Identification Number, Payee/
Payer/Employee Name (First, Middle,
Last, Suffix), Street Address, City, State,
ZIP Code (9 digit), Posting Cycle Week,
Posting Cycle Year, and Document
Code.
The Secretary of Commerce
determined that these items of return
information are needed to design a
decennial census that costs less per
housing unit and still maintains high
quality results. A major cost in previous
decennial censuses was the high
number of follow-up, in-person attempts
to collect information from housing
units that did not return a completed
census form. The Bureau intends to
conduct research and testing for the
next decennial census using
administrative data from federal
agencies, state agencies, and commercial
vendors to determine whether the
number of non-response follow-up visits
can be reduced through the strategic
reuse of this data. Specifically, the
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]]>Agencies
[Federal Register Volume 79, Number 135 (Tuesday, July 15, 2014)]
[Rules and Regulations]
[Pages 41127-41132]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-16464]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1 and 301
[TD 9675]
RIN 1545-BJ16
IRS Truncated Taxpayer Identification Numbers
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Final regulations.
-----------------------------------------------------------------------
SUMMARY: This document contains final regulations regarding an IRS
truncated taxpayer identification number, or a TTIN. Where not
prohibited by the Internal Revenue Code, applicable regulations, other
guidance published in the Internal Revenue Bulletin, forms, or
instructions, these regulations allow use of a TTIN in lieu of a
taxpayer's social security number (SSN), IRS individual taxpayer
identification number (ITIN), IRS adoption taxpayer identification
number (ATIN), or employer identification number (EIN) on payee
statements and certain other documents. The TTIN displays only the last
four digits of a taxpayer identifying number; either asterisks (*) or
Xs replace the first five digits of the identifying number. These
regulations affect persons that furnish or receive payee statements and
other documents that the Internal Revenue Code, regulations, or other
published guidance requires to be furnished to another person to the
extent that a TTIN may appear in lieu of the SSN, ITIN, ATIN, or EIN of
the payee or document recipient.
DATES: Effective Date: These regulations are effective on July 15,
2014.
Applicability Date: For dates of applicability see Sec. Sec.
1.6042-4(g), 1.6043-4(i), 1.6044-5(d), 1.6045-2(i), 1.6045-3(g),
1.6045-4(s), 1.6045-5(h), 1.6049-6(e)(5), 1.6050A-1(e), 1.6050E-1(m),
1.6050N-1(e), 1.6050P-1(h), 1.6050S-1(f), 1.6050S-3(g), and 301.6109-
4(c).
FOR FURTHER INFORMATION CONTACT: Jacqueline K. Queener, (202) 317-6844
(not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
This document amends the Income Tax Regulations (26 CFR part 1) and
the Procedure and Administration Regulations (26 CFR part 301) to
authorize filers of information returns to truncate a payee's or other
person's nine-digit identifying number on payee statements and certain
other documents. The goal of these amendments is to reduce the risk of
identity theft that may stem from the inclusion of a taxpayer's entire
identifying number on a payee statement or other document.
Concerned about the risks of identity theft, including its effect
on tax administration, the IRS established a pilot program allowing
filers of information returns who met certain requirements to truncate
an individual payee's identifying number on paper payee statements
(Forms 1098, 1099, and 5498) for calendar years 2009 and 2010. See
Notice 2009-93, 2009-51 IRB 863. The IRS subsequently extended the
pilot program for payee statements for calendar years 2011 and 2012,
and modified the program by removing the
[[Page 41128]]
Form 1098-C from the list of eligible documents on which a TTIN can be
used because it is an acknowledgement under section 170(f)(12) rather
than a payee statement. See Notice 2011-38, 2011-20 IRB 784.
On January 7, 2013, the Treasury Department and the IRS published a
notice of proposed rulemaking (REG-148873-09) in the Federal Register,
78 FR 913, establishing an IRS truncated taxpayer identification
number, a TTIN, and setting forth guidelines for its use. The scope of
the proposed regulations mirrored that of the pilot project as
reflected in Notice 2011-38 with one exception made in conformance with
comments received in response to the pilot program: The proposed
regulations permitted use of a TTIN on electronic payee statements in
addition to paper payee statements. A public hearing was scheduled for
March 12, 2013. One request to testify at the public hearing was
received but later withdrawn, and the public hearing was cancelled.
Eleven written comments responding to the NPRM were received and are
available for public inspection at https://www.regulations.gov or upon
request. After consideration of all the comments, the proposed
regulations are adopted as amended by this Treasury decision. The
amendments are discussed in the next section.
Summary of Comments and Explanation of Revisions
While comments received in response to the NPRM overwhelmingly
supported the proposed regulations, one commenter recommended against
finalizing the proposed regulations because he failed to see the
benefit of a TTIN and believed issuance of a TTIN would use funds for a
structure that already exists. As defined in Sec. 301.6109-4(a) of the
proposed regulations, a TTIN is simply a method for partially masking
taxpayer identifying numbers that already exist. Use of a TTIN does not
require issuance of a new number and no funds will be expended for that
purpose. The Treasury Department and the IRS believe that the
truncation of TINs will reduce the risk of identity theft. Therefore,
the final regulations do not adopt this recommendation.
Almost all commenters recommended allowing use of a TTIN in place
of an EIN. Some commenters stated that, due to technical constraints or
incomplete data records, many filers could not segregate payees with
EINs from payees with individual taxpayer identifying numbers (SSNs,
ITINs, and ATINs) that could be truncated under the proposed
regulations. Therefore, these filers were not able to use TTINs at all.
Other commenters stated that small businesses and closely-held entities
have the same privacy concerns that individuals have, and should be
granted the same benefits in protecting their identifying information.
In light of these comments, the Treasury Department and the IRS believe
that allowing truncated EINs will encourage filers to use TTINs for all
payees and will further reduce risk of identity theft. Accordingly,
Sec. 301.6109-4 of the final regulations permits truncation of EINs.
Most commenters recommended expanding the authorization to use a
TTIN on more documents than just payee statements in the Forms 1098,
1099, and 5498 series. Commenters specifically recommended that the IRS
consider allowing a TTIN to be used on a grantor trust letter as
required by Sec. 1.671-4(b); a widely held fixed investment trust
(WHFIT) statement as required by Sec. 1.671-5(e); a copy of a Schedule
K-1 issued to a partner, shareholder, or beneficiary under section
6012(a)(4), 6031(a)-(b), 6034A, or 6037(b); any Form 1097 series
return; a Form 2439 ``Notice to Shareholder of Undistributed Long-Term
Capital Gains''; or any other payee statement.
Under the proposed regulations, use of a TTIN was permitted only if
affirmatively authorized by the IRS. Commenters expressed concern that
allowing TTINs to be used only when authorized unduly limits the
documents on which TTINs may be used, which in turn reduces the effect
of using TTINs to help combat identity theft. Continued use of this
approach would impose an administrative burden on IRS to keep updated
the list of documents on which TTINs are permitted. The commenters
suggested that allowing TTINs to be used unless prohibited would
address these concerns. The Treasury Department and the IRS agree that
TTINs should be permitted on most documents that the internal revenue
laws require to be provided to payees and other persons. Accordingly,
the final regulations permit use of a TTIN on any federal tax-related
payee statement or other document required to be furnished to another
person unless prohibited by the Internal Revenue Code, regulations,
other guidance published in the Internal Revenue Bulletin, forms, or
instructions.
Under this modified approach, there is no need to amend every
information reporting regulation to permit the use of a TTIN. However,
it may be unclear whether language in certain regulations could be
interpreted as requiring use of an unmasked SSN, ITIN, ATIN, or EIN,
thereby prohibiting use of a TTIN. Accordingly, to avoid confusion, the
final regulations retain the provisions in the proposed regulations
that amend specific information reporting regulations that contained
language that could be interpreted as specifically requiring use of an
unmasked SSN, ITIN, ATIN, or EIN.
One commenter recommended allowing use of TTINs on Form 3520,
Annual Return To Report Transactions With Foreign Trusts and Receipts
of Certain Foreign Gifts, and Form 3520A, Annual Information Return of
Foreign Trust With a U.S. Owner (Under Section 6048(b)). Taxpayer
identifying numbers on returns and statements filed with the IRS are
necessary for the IRS to determine compliance with the tax laws and to
validate the information provided. Therefore, the final regulations
retain the rule in the proposed regulations that TTINs may not be used
on a return filed with the IRS. Accordingly, because Forms 3520 and
3520A are returns required to be filed with the IRS this recommendation
is not adopted.
Consistent with the approach adopted in the final regulations, the
regulations were revised to list the circumstances where use of a TTIN
is not permitted. Under Sec. 301.6109-4(b)(2), a TTIN may not be used
(1) where prohibited by statute, regulation, other guidance published
in the Internal Revenue Bulletin, form, or instructions; (2) where a
statute, regulation, other guidance published in the Internal Revenue
Bulletin, form, or instructions, specifically requires use of an SSN,
ITIN, ATIN, or EIN; or (3) on any return or statement required to be
filed with, or furnished to, the IRS. Further, a person may not
truncate its own taxpayer identification number on any tax form,
statement, or other document that person furnishes to another person.
For example, an employer cannot use a TTIN in place of its EIN on a
Form W-2, Wage and Tax Statement, that the employer furnishes to an
employee; and a person may not use a TTIN in place of its TIN on a Form
W-9, Request for Taxpayer Identification Number and Certification.
An example was added to Sec. 301.6109-4 of the regulations to
illustrate the operation of the revised rule. In addition, because use
of a TTIN is not limited by type of form, the definitions set forth in
Sec. 301.6109-4(b) of the proposed regulations are no longer necessary
and have been deleted from the final regulations.
Because a TTIN is a permissible method of displaying the taxpayer
identifying number, use of a TTIN when permitted by Sec. 301.6109-4 of
the final
[[Page 41129]]
regulations satisfies the requirement to include a taxpayer identifying
number on a document or statement. To eliminate any potential
confusion, Sec. 301.6109-4(b) of the final regulations is amended to
state that use of a TTIN as permitted in these regulations will not
result in application of any penalty (e.g., a penalty under section
6722 for failure to timely furnish a correct statement) for failure to
include a taxpayer identifying number on any payee statement or other
document.
Section 301.6109-4 of the final regulations is effective July 15,
2014. The amendments to the specific information reporting regulations
are generally effective for payee statements due after December 31,
2014. As stated in the proposed TTIN regulations, taxpayers were
allowed to rely on the rules in the proposed regulations prior to
publication of these final regulations. Finally, modifications have
been made to the effective date sections of some of these information
reporting regulations to remove outdated references.
Special Analyses
It has been determined that these regulations are not a significant
regulatory action as defined in Executive Order 12866, as supplemented
by Executive Order 13563. Therefore, a regulatory assessment is not
required. It also has been determined that section 553(b) of the
Administrative Procedure Act (5 U.S.C. chapter 5) does not apply to
these regulations, and, because the regulations do not impose a
collection of information on small entities, the Regulatory Flexibility
Act (5 U.S.C. chapter 6) does not apply. Pursuant to section 7805(f) of
the Code, the notice of proposed rulemaking that preceded these final
regulations was submitted to the Chief Counsel for Advocacy of the
Small Business Administration for comment on its impact on small
business, and no comments were received.
Drafting Information
The principal author of the final regulations is Jacqueline
Queener, Office of the Associate Chief Counsel (Procedure and
Administration).
List of Subjects
26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
26 CFR Part 301
Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income
taxes, Penalties, Reporting and recordkeeping requirements.
Adoption of Amendments to the Regulations
Accordingly, 26 CFR parts 1 and 301 are amended as follows:
PART 1--INCOME TAXES
0
Paragraph 1. The general authority citation for part 1 continues to
read as follows:
Authority: 26 U.S.C. 7805 * * *
0
Par. 2. Section 1.6042-4 is amended by revising paragraphs (b) and (g)
to read as follows:
Sec. 1.6042-4 Statements to recipients of dividend payments.
* * * * *
(b) Form and content of the statement. The statement required by
paragraph (a) of this section must be either the official Form 1099
prescribed by the Internal Revenue Service for the respective calendar
year or an acceptable substitute statement that contains provisions
that are substantially similar to those of the official Form 1099 for
the respective calendar year. For further guidance on how to prepare an
acceptable substitute statement, see Rev. Proc. 2012-38, 2012-48 IRB
575, also published as Publication 1179, ``General Rules and
Specifications for Substitute Forms 1096, 1098, 1099, 5498, and Certain
Other Information Returns,'' or any successor guidance. An IRS
truncated taxpayer identifying number (TTIN) may be used as the
identifying number of the recipient. For provisions relating to the use
of TTINs, see Sec. 301.6109-4 of this chapter (Procedure and
Administration Regulations).
* * * * *
(g) Effective/applicability date. This section is effective for
payee statements due after December 31, 1995, without regard to
extensions. The amendments to paragraph (b) are effective for payee
statements due after December 31, 2014. For payee statements due before
January 1, 2015, Sec. 1.6042-4(b) (as contained in 26 CFR part 1,
revised April 2013) shall apply.
0
Par. 3. Section 1.6043-4 is amended by:
0
1. Adding two new sentences to the end of paragraph (b)(4).
0
2. Revising the heading and adding two new sentences to the end of
paragraph (i).
The revision and additions read as follows:
Sec. 1.6043-4 Information returns relating to certain acquisitions of
control and changes in capital structure.
* * * * *
(b) * * *
(4) * * * An IRS truncated taxpayer identifying number (TTIN) may
be used as the identifying number of the shareholder in lieu of the
identifying number appearing on the Form 1099-CAP filed with the
Internal Revenue Service. For provisions relating to the use of TTINs,
see Sec. 301.6109-4 of this chapter (Procedure and Administration
Regulations).
* * * * *
(i) Effective/applicability date.* * * The amendments to paragraph
(b)(4) are effective for any Form 1099-CAP required to be furnished
after December 31, 2014. For any Form 1099-CAP required to be furnished
before January 1, 2015, Sec. 1.6043-4(b) (as contained in 26 CFR part
1, revised April 2013) shall apply.
0
Par. 4. Section 1.6044-5 is amended by:
0
1. Adding two new sentences to the end of paragraph (b).
0
2. Revising paragraph (d).
The addition and revision read as follows:
Sec. 1.6044-5 Statements to recipients of patronage dividends.
* * * * *
(b) * * * An IRS truncated taxpayer identifying number (TTIN) may
be used as the identifying number of the recipient in lieu of the
identifying number appearing on the corresponding information return
filed with the Internal Revenue Service. For provisions relating to the
use of TTINs, see Sec. 301.6109-4 of this chapter (Procedure and
Administration Regulations).
* * * * *
(d) Effective/applicability date. This section is effective for
payee statements due after December 31, 1995, without regard to
extensions. The amendments to paragraph (b) are effective for payee
statements due after December 31, 2014. For payee statements due before
January 1, 2015, Sec. 1.6044-5(b) (as contained in 26 CFR part 1,
revised April 2013) shall apply.
0
Par. 5. Section 1.6045-2 is amended by:
0
1. Adding two new sentences to the end of paragraph (c).
0
2. Revising the heading and adding two new sentences after the first
sentence of paragraph (i).
The revision and additions read as follows:
Sec. 1.6045-2 Furnishing statement required with respect to certain
substitute payments.
* * * * *
(c) * * * An IRS truncated taxpayer identifying number (TTIN) may
be used
[[Page 41130]]
as the identifying number of the customer in lieu of the identifying
number appearing on the information return filed with the Internal
Revenue Service. For provisions relating to the use of TTINs, see Sec.
301.6109-4 of this chapter (Procedure and Administration Regulations).
* * * * *
(i) Effective/applicability date. * * * The amendments to paragraph
(c) apply to payee statements due after December 31, 2014. For payee
statements due before January 1, 2015, Sec. 1.6045-2(c) (as contained
in 26 CFR part 1, revised April 2013) shall apply. * * *
0
Par. 6. Section 1.6045-3 is amended by:
0
1. Adding two new sentences to the end of paragraph (e)(1).
0
2. Revising the heading and adding two new sentences to the end of
paragraph (g).
The revision and additions read as follows:
Sec. 1.6045-3 Information reporting for an acquisition of control or
a substantial change in capital structure.
* * * * *
(e) * * *
(1) * * * An IRS truncated taxpayer identifying number (TTIN) may
be used as the identifying number of the customer. For provisions
relating to the use of TTINs, see Sec. 301.6109-4 of this chapter
(Procedure and Administration Regulations).
* * * * *
(g) Effective/applicability date. * * * The amendments to paragraph
(e)(1) apply to payee statements due after December 31, 2014. For payee
statements due before January 1, 2015, Sec. 1.6045-3(e)(1) (as
contained in 26 CFR part 1, revised April 2013) shall apply.
0
Par. 7. Section 1.6045-4 is amended by:
0
1. Revising paragraph (m)(1).
0
2. Adding two new sentences to the end of paragraph (s).
The revision and addition read as follows:
Sec. 1.6045-4 Information reporting on real estate transactions with
dates of closing on or after January 1,1991.
* * * * *
(m) * * *
(1)(i) Requirement of furnishing statements. A reporting person who
is required to make a return of information under paragraph (a) of this
section shall furnish to the transferor whose TIN is required to be
shown on the return a written statement of the information required to
be shown on such return. The written statement must bear either the
legend shown on the recipient copy of Form 1099 or the following:
``This is important tax information and is being furnished to the
Internal Revenue Service. If you are required to file a return, a
negligence penalty or other sanction may be imposed on you if this item
is required to be reported and the IRS determines that it has not been
reported.''
(ii) This requirement may be satisfied by furnishing to the
transferor a copy of a completed Form 1099 (or substitute Form 1099
that complies with current revenue procedures). An IRS truncated
taxpayer identifying number (TTIN) may be used as the identifying
number of the transferor in lieu of the identifying number appearing on
the information return filed with the Internal Revenue Service. For
provisions relating to the use of TTINs, see Sec. 301.6109-4 of this
chapter (Procedure and Administration Regulations).
(iii) In the case of a real estate transaction for which a Uniform
Settlement Statement is used, this requirement also may be satisfied by
furnishing to the transferor a copy of a completed statement that is
modified to comply with the requirements of this paragraph (m), and by
designating on the Uniform Settlement Statement the items of
information (such as gross proceeds or allocated gross proceeds)
required to be set forth on the Form 1099. For purposes of this
paragraph (m), a statement shall be considered furnished to a
transferor if it is given to the transferor in person, either at the
closing or thereafter, or is mailed to the transferor at the
transferor's last known address.
* * * * *
(s) * * * The amendments to paragraph (m)(1) apply to payee
statements due after December 31, 2014. For payee statements due before
January 1, 2015, Sec. 1.6045-4(m)(1) (as contained in 26 CFR part 1,
revised April 2013) shall apply.
0
Par. 8. Section 1.6045-5 is amended by:
0
1. Adding two new sentences before the last sentence of paragraph
(a)(3)(i).
0
2. Revising the heading and adding two new sentences to the end of
paragraph (h).
The revision and additions read as follows:
Sec. 1.6045-5 Information reporting on payments to attorneys.
(a) * * *
(3) * * *
(i) * * * An IRS truncated taxpayer identifying number (TTIN) may
be used as the identifying number of the attorney in lieu of the
identifying number appearing on the information return filed with the
Internal Revenue Service. For provisions relating to the use of TTINs,
see Sec. 301.6109-4 of this chapter (Procedure and Administration
Regulations). * * *
* * * * *
(h) Effective/applicability date. * * * The amendments to paragraph
(a)(3)(i) apply to payee statements due after December 31, 2014. For
payee statements due before January 1, 2015, Sec. 1.6045-5(a)(3)(i)
(as contained in 26 CFR part 1, revised April 2013) shall apply.
0
Par. 9. Section 1.6049-6 is amended by:
0
1. Adding paragraph (b)(3).
0
2. Adding a new sentence at the beginning of paragraph (e)(5).
The additions read as follows:
Sec. 1.6049-6 Statements to recipients of interest payments and
holders of obligations for attributed original issue discount.
* * * * *
(b) * * *
(3) With respect to both statements to persons receiving payments
of interest and persons holding obligations, the statement shall
include the name, address, and taxpayer identifying number of such
person. An IRS truncated taxpayer identifying number (TTIN) may be used
as the identifying number for the person. For provisions relating to
the use of TTINs, see Sec. 301.6109-4 of this chapter (Procedure and
Administration Regulations).
* * * * *
(e) * * *
(5) Effective/applicability date. Paragraph (b)(3) applies to payee
statements due after December 31, 2014. * * *
0
Par. 10. Section 1.6050A-1 is amended by:
0
1. Adding two new sentences to the end of paragraph (c)(1).
0
2. Adding paragraph (e).
The additions read as follows:
Sec. 1.6050A-1 Reporting requirements of certain fishing boat
operators.
* * * * *
(c) * * *
(1) * * * An IRS truncated taxpayer identifying number (TTIN) may
be used as the identifying number for the individual in lieu of the
identifying number appearing on the information return filed with the
Internal Revenue Service. For provisions relating to the use of TTINs,
see Sec. 301.6109-4 of this chapter (Procedure and Administration
Regulations).
* * * * *
[[Page 41131]]
(e) Effective/applicability date. The rules in this section apply
to information returns and payee statements due after December 31,
2014. For rules applicable for information returns and payee statements
due before January 1, 2015, Sec. 1.6050A-1(c)(1) (as contained in 26
CFR part 1, revised April 2013) shall apply.
0
Par. 11. Section 1.6050E-1 is amended by:
0
1. Adding two new sentences to the end of paragraph (k)(1).
0
2. Revising the heading and adding two new sentences to the end of
paragraph (m).
The revision and additions read as follows:
Sec. 1.6050E-1 Reporting of State and local income tax refunds.
* * * * *
(k) * * *
(1) * * * An IRS truncated taxpayer identifying number (TTIN) may
be used as the identifying number of the individual in lieu of the
identifying number appearing on the information return filed with the
Internal Revenue Service. For provisions relating to the use of TTINs,
see Sec. 301.6109-4 of this chapter (Procedure and Administration
Regulations).
* * * * *
(m) Effective/applicability date.* * * The amendments to paragraph
(k)(1) apply to payee statements due after December 31, 2014. For payee
statements due before January 1, 2015, Sec. 1.6050E-5(k)(1) (as
contained in 26 CFR part 1, revised April 2013) shall apply.
0
Par. 12. Section 1.6050N-1 is amended by:
0
1. Adding two new sentences to the end of paragraph (b).
0
2. Revising paragraph (e).
The addition and revision read as follows:
Sec. 1.6050N-1 Statements to recipients of royalties paid after
December 31, 1986.
* * * * *
(b) * * * An IRS truncated taxpayer identifying number (TTIN) may
be used as the identifying number of the recipient. For provisions
relating to the use of TTINs, see Sec. 301.6109-4 of this chapter
(Procedure and Administration Regulations).
* * * * *
(e) Effective/applicability date. This section applies to payee
statements due after December 31, 2014, without regard to extensions.
For payee statements due before January 1, 2015, Sec. 1.6050N-1 (as
contained in 26 CFR part 1, revised April 2013) shall apply.
0
Par. 13. Section 1.6050P-1 is amended by:
0
1. Removing ``section;'' from paragraph (f)(1)(i) and adding
``section.'' in its place.
0
2. Adding two new sentences to the end of paragraph (f)(1)(i).
0
3. Revising paragraph (h).
The addition and revisions read as follows:
Sec. 1.6050P-1 Information reporting for discharges of indebtedness
by certain entities.
* * * * *
(f) * * *
(1) * * *
(i) * * * An IRS truncated taxpayer identifying number (TTIN) may
be used as the TIN of the person for whom there was an identifiable
event in lieu of the identifying number appearing on the information
return filed with the Internal Revenue Service. For provisions relating
to the use of TTINs, see Sec. 301.6109-4 of this chapter (Procedure
and Administration Regulations);
* * * * *
(h) Effective/applicability date. This section applies to
discharges of indebtedness after December 31, 2013. For discharges of
indebtedness before January 1, 2014, Sec. 1.6050P-1 (as contained in
26 CFR part 1, revised April 2013) shall apply.
0
Par. 14. Section 1.6050S-1 is amended by:
0
1. Removing ``section;'' from paragraph (c)(1)(i) and adding
``section.'' in its place.
0
2. Adding two new sentences to the end of paragraph (c)(1)(i).
0
3. Revising the heading and adding two new sentences to the end of
paragraph (f).
The revision and additions read as follows:
Sec. 1.6050S-1 Information reporting for qualified tuition and
related expenses.
* * * * *
(c) * * *
(1) * * *
(i) * * * An IRS truncated taxpayer identifying number (TTIN) may
be used as the TIN of the individual in lieu of the identifying number
appearing on the information return filed with the Internal Revenue
Service. For provisions relating to the use of TTINs, see Sec.
301.6109-4 of this chapter (Procedure and Administration Regulations);
* * * * *
(f) Effective/applicability date.* * * Paragraph (c)(1)(i) applies
to payee statements due after December 31, 2014. For payee statements
due before January 1, 2015, Sec. 1.6050S-1 (as contained in 26 CFR
part 1, revised April 2013) shall apply.
0
Par. 15. Section 1.6050S-3 is amended by:
0
1. Removing ``section;'' from paragraph (d)(1)(i) and adding
``section.'' in its place.
0
2. Adding two new sentences to the end of paragraph (d)(1)(i).
0
3. Revising paragraph (g).
The addition and revisions read as follows:
Sec. 1.6050S-3 Information reporting for payments of interest on
qualified education loans.
* * * * *
(d) * * *
(1) * * *
(i) * * * An IRS truncated taxpayer identifying number (TTIN) may
be used as the TIN of the payor in lieu of the identifying number
appearing on the information return filed with the Internal Revenue
Service. For provisions relating to the use of TTINs, see Sec.
301.6109-4 of this chapter (Procedure and Administration Regulations).
* * * * *
(g) Effective/applicability date. The rules of this section apply
to information returns required to be filed, and payee statements
required to be furnished after December 31, 2014. For information
returns required to be filed, and payee statements required to be
furnished before January 1, 2015, Sec. 1.6050S-3 (as contained in 26
CFR part 1, revised April 2013) shall apply.
PART 301--PROCEDURE AND ADMINISTRATION
0
Par. 16. The authority citation for part 301 continues to read as
follows:
Authority: 26 U.S.C. 7805 * * *
0
Par. 17. Section 301.6109-4 is added to read as follows:
Sec. 301.6109-4 IRS truncated taxpayer identification numbers.
(a) In general-- Definition. An IRS truncated taxpayer
identification number (TTIN) is an individual's social security number
(SSN), IRS individual taxpayer identification number (ITIN), IRS
adoption taxpayer identification number (ATIN), or IRS employer
identification number (EIN) in which the first five digits of the nine-
digit number are replaced with Xs or asterisks. The TTIN takes the same
format of the identifying number it replaces, for example XXX-XX-1234
when replacing an SSN, or XX-XXX1234 when replacing an EIN.
[[Page 41132]]
(b) Use of a TTIN. (1) In general. Except as provided in paragraph
(b)(2) of this section, a TTIN may be used to identify any person on
any statement or other document that the internal revenue laws require
to be furnished to another person. Use of a TTIN is permissive and not
mandatory. Use of a TTIN as permitted by this section will not result
in application of any penalty for failure to include a correct taxpayer
identifying number on any payee statement or other document. For
example, the section 6722 penalty for failure to timely furnish a
correct statement would not apply solely because the payor used a TTIN
as permitted by this section.
(2) TTIN not permitted. Use of a TTIN is not permitted in the
following circumstances:
(i) A TTIN may not be used on a statement or other document if such
use is prohibited by statute, regulation, other guidance published in
the Internal Revenue Bulletin, form, or instructions.
(ii) A TTIN may not be used on a statement or document if a
statute, regulation, other guidance published in the Internal Revenue
Bulletin, form, or instructions, specifically requires use of a SSN,
ITIN, ATIN, or EIN. For example, a TTIN may not be used on a Form W-
8ECI or Form W-8IMY because the forms and/or form instructions
specifically prescribe use of an SSN, EIN, or ITIN for the U.S.
taxpayer identification number.
(iii) A TTIN may not be used on any return, statement, or other
document that is required to be filed with or furnished to the Internal
Revenue Service.
(iv) A person may not truncate its own taxpayer identifying number
on any statement or other document that it furnishes to another person.
For example, an employer may not truncate its EIN on a Form W-2, Wage
and Tax Statement, that the employer furnishes to an employee; and a
person may not truncate its TIN on a Form W-9, Request for Taxpayer
Identification Number and Certification.
(3) Example. The provisions of paragraph (a) are illustrated by the
following example:
Example. On April 5, year 1, Donor contributes a used car with
a blue book value of $1100 to Charitable Organization. On April 20,
year 1, Charitable Organization sends Donor copies B and C of the
Form 1098-C as a contemporaneous written acknowledgement of the
$1100 contribution as required by section 170(f)(12). In late-
February, year 2, Charitable Organization prepares and files copy A
of Form 1098-C with the IRS, reporting Donor's donation of a
qualified vehicle in year 1. The Charitable Organization may use a
TTIN in lieu of Donor's complete SSN in the Donor's Identification
Number box on copies B and C of the Form 1098-C because copies B and
C of the Form 1098-C are documents required by the Internal Revenue
Code and regulations to be furnished to another person, there are no
applicable statutes, regulations, other published guidance, forms or
instructions, that prohibit the use of a TTIN on those copies, and,
there are no applicable statutes, regulations, other published
guidance, forms, or instructions that specifically require use of an
SSN or other identifying number on those copies. A TTIN cannot be
used on copy A of the Form 1098-C, however, because copy A is
required to be filed with the IRS.
(c) Effective/applicability date. This section applies on and after
July 15, 2014.
John Dalrymple,
Deputy Commissioner for Services and Enforcement.
Approved: May 30, 2014.
Mark J. Mazur,
Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2014-16464 Filed 7-14-14; 8:45 am]
BILLING CODE 4830-01-P
