The IRS has issued proposed regulations that would allow employers to truncate social security numbers (SSNs) on the employee copies of Forms W-2 in REG-105004-16. However, the IRS has announced that the option won’t be available for W-2s issued before December 31, 2018.
Prior to a change in the law found in the PATH Act, IRC §6051(a)(2) required the employee’s social security to be printed in full on the employee’s copy of Form W-2. Due to concerns regarding identity theft, Congress changed the law to remove that requirement. However, the law did not mandate the use of truncated numbers and the regulations continue to require use of the employee’s entire social security number.
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