IRS will soon conceal sensitive data on business tax transcripts

Business tax transcripts will soon look a little different. Beginning December 13, the IRS will conceal some information on business tax transcripts to better protect people from possible identity theft.

A transcript is basically a summary of a tax return. Tax pros use transcripts to prepare prior year tax returns or represent the client before the IRS. Lenders and others use tax transcripts to verify income.

Here’s what taxpayers will be able to see on the new business tax transcript:

• Last four digits of:
  • Employer identification numbers
  • Social Security numbers
  • 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; this includes spaces
   
• All dollar amounts
   
• The customer file number when it’s entered on Line 5 of Form 4506-T, Request for Transcript of Tax Return, and Form 4506T-EZ, Short Form Request for Individual Tax Return Transcript.