Social Security Numbers Cannot Be Truncated on 2011 Information Returns

In the 2011 instructions for Form 1099-MISC, Miscellaneous Income, the IRS notes that the pilot program for truncating an individual's identification number on paper payee statements has ended. The program was in effect in the 2009 and 2010 calendar years (see Notice 2009-93, 2009-51 IRB 863). It only applied to paper payee statements in the Form 1098 series (mortgage interest); Form 1099 series (various payments, including, for example, miscellaneous income); and Form 5498 series (IRA and other items). The only identification numbers that could be truncated were a Social Security number, an IRS individual taxpayer identification number (ITIN), or an IRS adoption taxpayer identification number. The IRS hoped that the risk of identity theft would be reduced if the identification number was truncated.

Filers of 2011 Form 1099-MISC must show the recipient's complete identification number on all copies of the form.