
Social security numbers may be removed from future w-2s
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The IRS has proposed a rule change designed to ward off identity theft by allowing employers to use a truncated form of Social Security numbers on W-2 wage and tax forms. The truncated
numbers would identify taxpayers without using their full Social Security numbers, making them less vulnerable to ID thieves. The IRS is asking for comments by Dec. 18 before carrying out
the new regulations. Employers are required to submit by Jan. 31 a W-2 statement spelling out the wages and tax withholdings for each taxpayer in the prior year. The proposed rules would
allow, but not require, employers to truncate the Social Security numbers on W-2s. For decades, federal agencies, taxpayers and consumers have been stricken with widespread identity theft,
often using purloined Social Security numbers. Some thieves use stolen numbers to file tax forms under other people’s names so they can collect the refunds. As a result, Congress, the IRS
and many others have been looking for ways to limit the use of full SSNs. New Medicare cards, for example, will not use these numbers. To guard against theft, taxpayer advocates recommend
that people avoid carrying around their Social Security cards and refuse to relay their numbers to anyone but employers, lenders, the IRS and government-funded programs. The more the number
is used, advocates say, the greater the risk.