Masking Recipient TINs

Masking TIN's (Taxpayer Identification Number)

Masking (also called Truncating by the IRS) results in the 9 digit TIN being displayed as XXXXX1234, or XX-XXX1234, or XXX-XX-1234 for security. This is similar to the way credit card numbers are displayed as XXXX XXXX XXXX 1234 on a credit card receipt for security.

The IRS has allowed Masking of all recipient Tax ID Numbers for security purposes. IRS Truncated Taxpayer Identification Numbers

Masking is set ON by default. Masking is turned ON or OFF by clicking on the FILE MENU, then Page Setup, then the MASKING TAB.

Even with masking set ON, masking will NOT happen on copies where the full TAX ID must print, such as Copy A for the IRS, and Copy 1 from you the filer to the state, and the filer's copy (your copy). When masking is set ON, it occurs only on copies that are mailed to payes, such as copies B and 2 (for 1099 Misc) and copies B, C and 2 (for 1099-R), and so on for other forms.

For example, if a payee's 1099 form is stolen from a mailbox, and masking is set ON, the payee's full number is not displayed. Just the right 4 digits are displayed. The TIN is protected, but the recipient knows this is his number. This protects the recipient/payee from identity theft. This is the reason the IRS requires Truncation/Masking of both SSNs and EINs (Tax ID numbers). If the payee's identity is compromised or stolen due to your failure to Mask, then the payee might be able to hold you responsible for NOT using Truncation as allowed and recommended by the IRS.

Masking protects both personal Social Security Numbers (SSNs) and company Employer Identification Numbers (EINs) from disclosure.

When printing on pre-printed forms, you will be prompted to tell the software WHICH FORM, is being printed. Be sure the full 9 digit TAX ID number prints on Copy A for the IRS, and Copy 1 for the state. Otherwise there could be a PENALTY.

Of course, even if masking is set ON, when your 1099s are e-Filed to the IRS, the full Tax ID (all 9 digits) are automatically present in the e-File, which is delivered via the secure IRS FIRE site.