Compliance Bulletin

Social Security Numbers Need to be Truncated on IRS Forms
November 17, 2014

For years now California law (Civil Code Section 1798.85) prohibited the printing of a person’s social security number (SSN) on a statement or document provided to another individual (such as a Form 1098) if it is mailed to the individual. However, the law permitted an exception for materials in which the SSN is required to be on the document. Some filers have relied on this exception for various reasons and continued to print the full SSN on mailed documents. Earlier this year the IRS issued a final rule, effective for documents provided after December 31, 2014, that  allows filers on a voluntary basis to truncate taxpayer identification numbers including the SSN. Since inclusion of the full SSN is no longer required by the IRS, persons under Section 1798.85 may no longer rely on the exception. Truncation is thus now mandatory. See CBA’s Regulatory Compliance Bulletin for more information.