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Effort seeks to better protect taxpayer data

The Internal Revenue Service announced a new format for individual tax transcripts that will redact personally identifiable information from the Form 1040 series.

This new transcript replaces the previous format and will be the default format available via Get Transcript Online, Get Transcript by Mail or the Transcript Delivery System for tax professionals as of September 23, the IRS said in an announcement last week. Financial entries will remain visible, which will give taxpayers and third-parties the data they need for tax preparation or income verification.

Additionally, based on stakeholder feedback, the IRS also has created a new Customer File Number that lenders, colleges and other third parties that order transcripts for non-tax purposes can use as an identifying number instead of the taxpayer’s SSN. Since the IRS joined in partnership with the states and tax industry in 2015, great progress has been made in the effort to combat stolen identity refund fraud, the IRS reported.

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