TIN masking/truncation add-on service

TIN masking or truncation is a security practice in the case of sensitive data. It means replacing part of the actual TIN with a placeholder, for example by the word TIN or the digits XXX.

At eFileMyForms, TIN masking is an add-on service that you can select during the checkout process, except for 1098 forms, when a recipient’s TIN may not be truncated/masked. Regulations Section 301.6109-4 permit filers to truncate/mask payee TINs in most cases. In the case of 1098 forms, however, the payee/recipient is also the filer of the return, so the IRS does not permit truncating recipient TINs on Form 1098.

The recipient on Form 1098 is the lending party receiving payment of interest and is also the entity responsible for filing the form with the IRS.