The IRS is now concealing sensitive data on business tax transcripts
Posted on December 11, 2020
In a bow to business concerns about confidential information appearing on business tax transcript summaries, the IRS has taken action.
Beginning December 13, the IRS will conceal some sensitive information appearing on business tax transcripts to better protect people from possible identity theft and misuse of personal financial information.
The information of these transcripts is most frequently used to prepare prior year tax returns or represent the client before the IRS. Lenders, mortgage companies, and banks also use IRS tax transcripts to verify income for lending purposes.
From this point on, here’s what you will be able to see on reformulated business tax transcripts:
- Last four digits of:
- Employer identification numbers
- Social Security number
- Individual tax identification numbers
- Account numbers
- Phone numbers
- First four letters of the first and last name for anyone listed, including on the business name line. (Only the first three letters will be visible if the name is only four letters long).
- First six characters of the street address, including spaces.
- All dollar amounts.
- The customer file number as it is entered on Line 5 of Form 4506-T and 4506-EZ, Request for Transcript of Tax Return
This partial obscuring of information will make it more difficult to for scammers and others to utilize sensitive taxpayer information for nefarious purposes. It is yet another helpful way the IRS has stepped in to reduce theft, and the uptick of scams through misuse of personal information.
At Teipen CPA Group, we welcome this protection. We also do everything possible to protect our customers’ privacy in every area of our business, from tax preparation to business accounting, and everything in between.