Business Tax Transcripts Will Soon Have Masked Data

Starting December 13, the IRS will begin masking sensitive data on business tax transcripts. This will help prevent identity theft and safeguard sensitive information.

tax planningTaxpayers and tax professionals can make adjustments before the December 13 deadline. Sensitive information on individual tax transcripts have been masked for the past two years.

New tax transcript

Here’s what is visible on the new masked tax transcript:

  • Last four digits of any Employer Identification Number listed on the transcript: XX-XXX1234
  • Last four digits of any Social Security number or Individual Tax Identification Number listed on the transcript: XXX-XX-1234
  • Last four digits of any account or telephone number
  • First four characters of the first, and last name for any individual (first three characters if the name has only four letters)
  • First four characters of any name on the business name line
  • First six characters of the street address, including spaces
  • All money amounts, including wage and income, balance due, interest and penalties

There will be a space for the Customer File Number on the tax transcript, which is an optional 10-digit number that can be created usually by third parties that allow them to match a transcript to a taxpayer. The Customer File Number field will appear on the transcript when that number is entered on Line 5 of Form 4506-T, Request for Transcript of Tax Return, and Form 4506T-EZ.

How a taxpayer will verify income for a lender

  1. The lender will assign a 10-digit number, for example, a loan number, to the Form 4506-T. The Form 4506-T may be signed and submitted by the taxpayer or signed by the taxpayer and submitted by the lender.
  2. The Customer File Number assigned by the requestor on the Form 4506-T will populate on the transcript. The requestor may assign any number except the taxpayer’s Social Security number or Employer Identification Number.
  3. Once received by the requester, the transcript’s Customer File Number serves as the tracking number to match it to the taxpayer.

More information about the masking of transcripts can be found at IRS.gov’s e-Services page after December 13.

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