43920 Federal Register / Vol. 82, No. 181 / Wednesday, September 20, 2017 / Proposed Rules 

Board of Governors of the Federal 

Reserve System proposes to amend part 

228 of chapter II of title 12 of the Code 

of Federal Regulations as follows: 

PART 228—COMMUNITY 

REINVESTMENT (REGULATION BB) 

■ 1. The authority citation for part 228 

continues to read as follows: 

Authority: 12 U.S.C. 321, 325, 1828(c), 

1842, 1843, 1844, and 2901 et seq. 

§ 228.12 [Amended] 

■ 2. Section 228.12 is amended: 

■ a. By adding ‘‘or’’ at the end of 

paragraph (g)(3); 

■ b. By removing ‘‘; or’’ at the end of 

(g)(4), and adding in its place ‘‘.’’; 

■ c. By removing paragraph (g)(5); 

■ d. In paragraph (h)(2)(i), by removing 

the phrase ‘‘unless it is a multifamily 

dwelling loan (as described in appendix 

A to part 1003 of this title)’’ and adding 

in its place the phrase ‘‘unless the loan 

is for a multifamily dwelling (as defined 

in § 1003.2(n) of this title)’’; 

■ e. By removing paragraph (j)(3), and 

redesignating paragraph (j)(4) as 

paragraph (j)(3) and redesignating 

paragraph (j)(5) as paragraph (j)(4); and 

■ f. In paragraph (l), by removing the 

phrase ‘‘ ‘home improvement loan,’ 

‘home purchase loan,’ or a ‘refinancing’ 

as defined in § 1003.2 of this title’’ and 

adding in its place the phrase, ‘‘closedend mortgage loan or an open-end line 

of credit as these terms are defined 

under § 1003.2 of this title and that is 

not an excluded transaction under 

§ 1003.3(c)(1)–(10) and (13) of this title’’. 

§ 228.22 [Amended] 

■ 3. Section 228.22 is amended in 

paragraph (a)(1), by removing the phrase 

‘‘home equity,’’ after ‘‘credit card.’’ 

§ 228.42 [Amended] 

■ 4. Section 228.42 is amended in 

paragraph (c)(1), by removing the phrase 

‘‘home equity,’’ after ‘‘credit card.’’ 

■ 5. Section 228.43 is amended by 

revising paragraph (b)(2), to read as 

follows: 

§ 228.43 Content and availability of public 

file. 

* * * * * 

(b) * * * 

(2) Banks required to report Home 

Mortgage Disclosure Act (HMDA) data. 

A bank required to report home 

mortgage loan data pursuant part 1003 

of this title shall include in its public 

file a written notice that the institution’s 

HMDA Disclosure Statement may be 

obtained on the Consumer Financial 

Protection Bureau’s (Bureau’s) Web site 

at www.consumerfinance.gov/hmda. In 

addition, a bank that elected to have the 

Board consider the mortgage lending of 

an affiliate shall include in its public 

file the name of the affiliate and a 

written notice that the affiliate’s HMDA 

Disclosure Statement may be obtained at 

the Bureau’s Web site. The bank shall 

place the written notice(s) in the public 

file within three business days after 

receiving notification from the Federal 

Financial Institutions Examination 

Council of the availability of the 

disclosure statement(s). 

* * * * * 

Federal Deposit Insurance Corporation 

12 CFR Chapter III 

Authority and Issuance 

For the reasons discussed in the 

SUPPLEMENTARY INFORMATION section, the 

Board of Directors of the Federal 

Deposit Insurance Corporation proposes 

to amend part 345 of chapter III of title 

12 of the Code of Federal Regulations to 

read as follows: 

PART 345—COMMUNITY 

REINVESTMENT 

■ 1. The authority citation for part 345 

continues to read as follows: 

Authority: 12 U.S.C. 1814–1817, 1819– 

1820, 1828, 1831u and 2901–2908, 3103– 

3104, and 3108(a). 

§ 345.12 [Amended] 

■ 2. Section 345.12 is amended: 

■ a. By adding ‘‘or’’ at the end of 

paragraph (g)(3); 

■ b. By removing ‘‘; or’’ at the end of 

(g)(4), and adding in its place ‘‘.’’; 

■ c. By removing paragraph (g)(5); 

■ d. In paragraph (h)(2)(i), by removing 

the phrase ‘‘unless it is a multifamily 

dwelling loan (as described in appendix 

A to part 1003 of this title)’’ and adding 

in its place the phrase ‘‘unless the loan 

is for a multifamily dwelling (as defined 

in § 1003.2(n) of this title)’’; 

■ e. By removing paragraph (j)(3), and 

redesignating paragraph (j)(4) as 

paragraph (j)(3) and redesignating 

paragraph (j)(5) as paragraph (j)(4); and 

■ f. In paragraph (l), by removing the 

phrase ‘‘‘home improvement loan,’ 

‘home purchase loan,’ or a ‘refinancing’ 

as defined in§ 1003.2 of this title’’ and 

adding in its place the phrase, ‘‘closedend mortgage loan or an open-end line 

of credit as these terms are defined 

under § 1003.2 of this title and that is 

not an excluded transaction under 

§ 1003.3(c)(1)–(10) and (13) of this title’’. 

§ 345.22 [Amended] 

■ 3. Section 345.22 is amended in 

paragraph (a)(1), by removing the phrase 

‘‘home equity,’’ after ‘‘credit card.’’ 

§ 345.42 [Amended] 

■ 4. Section 345.42 is amended in 

paragraph (c)(1), by removing the phrase 

‘‘home equity,’’ after ‘‘credit card.’’ 

■ 5. Section 345.43 is amended by 

revising paragraph (b)(2), to read as 

follows: 

§ 345.43 Content and availability of public 

file. 

* * * * * 

(b) * * * 

(2) Banks required to report Home 

Mortgage Disclosure Act (HMDA) data. 

A bank required to report home 

mortgage loan data pursuant part 1003 

of this title shall include in its public 

file a written notice that the institution’s 

HMDA Disclosure Statement may be 

obtained on the Consumer Financial 

Protection Bureau’s (Bureau’s) Web site 

at www.consumerfinance.gov/hmda. In 

addition, a bank that elected to have the 

FDIC consider the mortgage lending of 

an affiliate shall include in its public 

file the name of the affiliate and a 

written notice that the affiliate’s HMDA 

Disclosure Statement may be obtained at 

the Bureau’s Web site. The bank shall 

place the written notice(s) in the public 

file within three business days after 

receiving notification from the Federal 

Financial Institutions Examination 

Council of the availability of the 

disclosure statement(s). 

* * * * * 

Dated: September 12, 2017. 

Keith A. Noreika, 

Acting Comptroller of the Currency. 

By order of the Board of Governors of the 

Federal Reserve System, September 6, 2017. 

Ann E. Misback, 

Secretary of the Board. 

By order of the Board of Directors. 

Dated at Washington, DC, this 31st day of 

August, of 2017. 

Federal Deposit Insurance Corporation. 

Robert E. Feldman, 

Executive Secretary. 

[FR Doc. 2017–19765 Filed 9–19–17; 8:45 am] 

BILLING CODE 4810–33–P; 6210–01–P; 6714–01–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Parts 1, 31, and 301 

[REG–105004–16] 

RIN 1545–BN35 

Use of Truncated Taxpayer 

Identification Numbers on Forms W–2, 

Wage and Tax Statement, Furnished to 

Employees 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 


sradovich on DSKBBY8HB2PROD with PROPOSALS
Federal Register / Vol. 82, No. 181 / Wednesday, September 20, 2017 / Proposed Rules 43921 

ACTION: Notice of proposed rulemaking. 

SUMMARY: This document contains 

proposed amendments to the 

regulations under sections 6051 and 

6052 of the Internal Revenue Code 

(Code). To aid employers’ efforts to 

protect employees from identity theft, 

these proposed regulations would 

amend existing regulations to permit 

employers to voluntarily truncate 

employees’ social security numbers 

(SSNs) on copies of Forms W–2, Wage 

and Tax Statement, that are furnished to 

employees so that the truncated SSNs 

appear in the form of IRS truncated 

taxpayer identification numbers 

(TTINs). These proposed regulations 

also would amend the regulations under 

section 6109 to clarify the application of 

the truncation rules to Forms W–2 and 

to add an example illustrating the 

application of these rules. Additionally, 

these proposed amendments would 

delete obsolete provisions and update 

cross references in the regulations under 

sections 6051 and 6052. These proposed 

regulations affect employers who are 

required to furnish Forms W–2 and 

employees who receive Forms W–2. 

DATES: Written or electronic comments 

and requests for a public hearing must 

be received by December 18, 2017. 

ADDRESSES: Send submissions to: 

CC:PA:LPD:PR (REG–105004–16), Room 

5203, Internal Revenue Service, P.O. 

Box 7604, Ben Franklin Station, 

Washington, DC 20044. Submissions 

may be hand-delivered between the 

hours of 8 a.m. and 4 p.m. to 

CC:PA:LPD:PR (REG–105004–16), 

Courier’s Desk, Internal Revenue 

Service, 1111 Constitution Avenue NW., 

Washington, DC, or sent via the Federal 

eRulemaking Portal at 

www.regulations.gov (REG–105004–16). 

FOR FURTHER INFORMATION CONTACT: 

Concerning these proposed regulations, 

Eliezer Mishory, (202) 317–6844; 

concerning submissions of comments 

and/or requests for a hearing, Regina 

Johnson, (202) 317–6901 (not toll-free 

numbers). 

SUPPLEMENTARY INFORMATION: 

Background 

This document contains proposed 

amendments to the Income Tax 

Regulations (26 CFR part 1), the 

Employment Taxes and Collection of 

Income Tax at Source Regulations (26 

CFR part 31), and the Procedure and 

Administration Regulations (26 CFR 

part 301) regarding statements that are 

required to be furnished to employees 

by employers or other persons under 

sections 6051 and 6052 of the Code. 

Section 6051(a) generally requires that 

an employer provide to each employee 

on or before January 31st of the 

succeeding year a written statement that 

shows the employee’s total amount of 

wages and the total amount deducted 

and withheld as tax from those wages, 

along with other information, for each 

calendar year. Employers must use 

Form W–2 (or a substitute statement 

that complies with applicable revenue 

procedures relating to such statements) 

to provide the information required by 

section 6051(a) to employees. See 

§ 31.6051–1(a)(1)(i); Rev. Proc. 2016–54, 

2016–45 I.R.B. 685, also published as 

Publication 1141, ‘‘General Rules and 

Specifications for Substitute Forms W– 

2 and W–3,’’ or any successor guidance. 

Section 6051(d) provides that, when 

required to do so by regulations, 

employers must file with the Secretary 

duplicates of the forms required to be 

furnished to employees under section 

6051. Section 31.6051–2(a) generally 

requires employers to file Social 

Security Administration copies of 

Forms W–2 with the Social Security 

Administration. A person making a 

payment of third-party sick pay to an 

employee of another employer (payee) is 

required under section 6051(f)(1) to 

furnish a written statement to the 

employer for whom services are 

normally rendered containing certain 

information, including the payee’s SSN. 

Under certain conditions, the employer 

for whom services are normally 

rendered is required under section 

6051(f)(2) to furnish a Form W–2 to the 

payee. This situation may arise, for 

example, when an insurance company 

is making payments to an employee of 

another employer because the employee 

is temporarily absent from work due to 

injury, sickness or disability, and the 

insurance company has satisfied the 

necessary requirements under § 32.1(e) 

of the Temporary Employment Tax 

Regulations under the Act of December 

29, 1981 (Pub. L. 97–123) to transfer the 

obligation to do Form W–2 reporting to 

the employer. Employers also must use 

Form W–2 to file and furnish 

information regarding payment of wages 

in the form of group-term life insurance 

under section 6052. 

Section 6109(a) authorizes the 

Secretary to prescribe regulations with 

respect to the inclusion in returns, 

statements, or other documents of an 

identifying number as may be 

prescribed for securing proper 

identification of a person. On July 15, 

2014, the Treasury Department and the 

IRS published in the Federal Register 

(79 FR 41127–02) final regulations (TD 

9675) authorizing the use of TTINs on 

certain payee statements and certain 

other documents. These final 

regulations were in response to 

concerns about the risks of identity 

theft, including its effect on tax 

administration. 

Section 301.6109–4(b) generally 

provides that a TTIN may be used to 

identify any person on any statement or 

other document that the internal 

revenue laws require to be furnished to 

another person. Under § 301.6109–4(a), 

a TTIN is an individual’s SSN, IRS 

individual taxpayer identification 

number (ITIN), IRS adoption taxpayer 

identification number (ATIN), or IRS 

employer identification number (EIN) in 

which the first five digits of the ninedigit number are replaced with Xs or 

asterisks. For example, a TTIN replacing 

an SSN appears in the form XXX–XX– 

1234 or ***–**–1234. Section 

301.6109–4(b)(2)(ii) prohibits using 

TTINs if, among other things, a statute, 

regulation, other guidance published in 

the Internal Revenue Bulletin, form, or 

instructions specifically requires the use 

of an SSN. Additionally, § 301.6109– 

4(b)(2)(iii) prohibits the use of TTINs on 

any return, statement, or other 

document that is required to be filed 

with or furnished to the IRS. 

Prior to being amended by the 

Protecting Americans from Tax Hikes 

(PATH) Act of 2015, Public Law 114– 

113, div. Q, title IV, 129 Stat. 2242, 

section 6051(a)(2) specifically required 

employers to include their employees’ 

SSNs on copies of Forms W–2 that are 

furnished to employees. In addition, 

current regulations under § 31.6051–1, 

as well as forms and instructions, 

require employers to include their 

employees’ SSNs on copies of Forms 

W–2 that are furnished to employees. 

Section 409 of the PATH Act amended 

section 6051(a)(2) by striking ‘‘his social 

security account number’’ from the list 

of information required on Form W–2 

and inserting ‘‘an identifying number 

for the employee’’ instead. This 

statutory amendment is effective for 

statements issued after December 18, 

2015, the date that the PATH Act was 

signed into law. Because an SSN is no 

longer required by section 6051, the 

Treasury Department and the IRS 

propose amending the regulations to 

permit employers to truncate 

employees’ SSNs to appear in the form 

of TTINs on copies of Forms W–2 that 

are furnished to employees. If the 

proposed regulations are finalized 

without change, the IRS intends to 

incorporate the revised regulations into 

forms and instructions, permitting 

employers to use a TTIN on the 

employee copy of the Form W–2. See 

§ 301.6109–4(b)(2)(i) and (ii). 


sradovich on DSKBBY8HB2PROD with PROPOSALS
43922 Federal Register / Vol. 82, No. 181 / Wednesday, September 20, 2017 / Proposed Rules 

Explanation of Provisions 

Truncated SSN Permitted on 

Employee’s Copies of Form W–2 

These proposed regulations amend 

§ 31.6051–1 to permit employers to 

truncate employees’ SSNs to appear in 

the form of a TTIN on copies of Forms 

W–2 that are furnished to employees 

under section 6051. Consistent with the 

rule in § 301.6109–4(b)(2)(iii), 

prohibiting the use of TTINs on any 

return, statement, or other document 

that is required to be filed with or 

furnished to the IRS, these proposed 

regulations amend § 31.6051–2 to clarify 

that employers may not truncate an 

employee’s SSN to appear in the form 

of a TTIN on a copy of a Form W–2 that 

is filed with the Social Security 

Administration. This result is 

appropriate because both the IRS and 

the SSA need to utilize Forms W–2 to 

properly identify individuals to be able 

to carry out their respective duties. 

Consistent with the rule in 

§ 301.6109–4(b)(2)(ii) that prohibits 

using TTINs if, among other things, a 

statute specifically requires the use of 

an SSN, the proposed regulations also 

amend § 31.6051–3 to clarify that a 

payee’s SSN may not be truncated to 

appear in the form of a TTIN on a 

statement furnished to the employer of 

the payee who received sick pay from a 

third party because section 

6051(f)(1)(A)(i) specifically requires 

such a statement to contain the 

employee’s SSN. Nonetheless, these 

proposed regulations permit employers 

to truncate payees’ SSNs to appear in 

the form of TTINs on copies of Forms 

W–2 that are furnished under section 

6051(f)(2) to payees that report such 

third-party sick pay, in accordance with 

the general rule governing the reporting 

of wages to employees on Forms W–2 

under section 6051(a), because section 

6051(f)(2) does not specifically require 

the use of an SSN. 

Further, these proposed regulations 

amend § 1.6052–2 to permit employers 

to truncate employees’ SSNs to appear 

in the form of TTINs on copies of Forms 

W–2 that are furnished to employees 

under section 6052(b) regarding 

payment of wages in the form of groupterm life insurance. 

These proposed regulations amend 

§ 301.6109–4 to clarify that truncation is 

not allowed on any return, statement, or 

other document that is required to be 

filed with or furnished to the Social 

Security Administration under the 

internal revenue laws. These proposed 

regulations also clarify the rule 

prohibiting truncation if a statute, 

regulation, other guidance published in 

the Internal Revenue Bulletin, form, or 

instructions, specifically requires use of 

a SSN, ITIN, ATIN, or EIN. The 

proposed regulations provide that 

truncation is allowed if a statute or IRS 

guidance (e.g., regulations, forms, 

instructions), that specifically requires 

use of a SSN, ITIN, ATIN, or EIN, also 

specifically states that the taxpayer 

identifying number may be truncated. 

These proposed regulations also add an 

example illustrating the application of 

these rules to Forms W–2. These 

proposed regulations also amend the 

existing example for clarity. 

Miscellaneous Updates to Regulations 

Under Sections 6051 and 6052 

In addition to the amendments 

relating to the truncation of employees’ 

SSNs to appear in the form of TTINs in 

specific circumstances, these proposed 

regulations eliminate obsolete 

provisions and update cross references 

in the regulations under sections 6051 

and 6052, as explained below. 

First, these proposed regulations 

amend § 31.6051–1 to remove obsolete 

provisions regarding compensation, as 

defined in the Railroad Retirement Tax 

Act, paid during 1968, 1969, 1970, and 

1971 and reported on the now obsolete 

Form W–2 (RR); the special rule for 

statements with respect to the 

refundable earned income credit for 

Form W–2 for 1987 and 1988; and 

references to the annual contribution 

base (repealed in 1993) for wages 

subject to the Hospital Insurance tax 

(commonly known as Medicare tax). 

Second, these proposed regulations 

amend § 31.6051–1 to remove obsolete 

cross references, including a cross 

reference to former § 301.6676–1 

relating to the penalty for failure to 

report an identification number or an 

account number, and a cross reference 

to section 6723 (prior to its amendment 

in 1989) that was relevant for Forms W– 

2 that were due from the beginning of 

1987 through the end of 1989. 

Third, these proposed regulations 

amend § 31.6051–2 to update now 

inaccurate cross references resulting 

from statutory and regulatory changes 

regarding penalties for failures to file, 

and to remove a cross reference to 

section 6723 (prior to its amendment in 

1989) that was relevant for Forms W–2 

that were due from the beginning of 

1987 through the end of 1989. These 

proposed regulations also change the 

title of § 31.6051–2 from ‘‘Information 

returns on Form W–3 and Internal 

Revenue Service copies of Forms W–2’’ 

to ‘‘Information returns on Form W–3 

and Social Security Administration 

copies of Forms W–2,’’ to conform with 

the text of the regulation that refers to 

the Social Security Administration 

copies of Form W–2. In addition, these 

proposed regulations remove obsolete 

references in § 31.6051–2 to the 

requirements to submit information on 

magnetic tape and insert a reference to 

the requirements to submit information 

on magnetic media. 

Fourth, these proposed regulations 

amend § 31.6051–3 to remove the 

obsolete transition rule for third-party 

sick pay that was paid to a payee after 

December 31, 1980, and before May 1, 

1981. 

Fifth, these proposed regulations 

amend § 1.6052–2 to remove an obsolete 

rule that allowed employers to use a 

statement other than a Form W–2 to 

satisfy the requirement to furnish a 

statement to an employee with respect 

to wages paid in the form of group-term 

life insurance. This rule was relevant for 

years prior to 1973, before § 1.6052–1 

was amended to require employers to 

report wages in the form of group-term 

life insurance on Form W–2. At the 

same time, to conform to this new 

requirement, § 1.6052–2 was amended 

to provide that the requirement to 

furnish a statement to an employee with 

respect to wages paid in the form of 

group-term life insurance may be 

satisfied by furnishing to the employee 

the employee’s copy of Form W–2 that 

was filed pursuant to § 1.6052–1. 

Because the transition period to require 

employers to file Form W–2 has long 

since passed and because the Treasury 

Department and the IRS understand that 

copies of Forms W–2 are used to satisfy 

the requirement to furnish statements to 

employees under § 1.6052–2, these 

proposed regulations require employers 

to furnish to employees the employees’ 

copies of Forms W–2 that were filed 

pursuant to § 1.6052–1, and these 

proposed regulations make conforming 

changes throughout that section. 

Finally, these proposed regulations 

update the now inaccurate cross 

reference resulting from statutory 

changes regarding penalties for failures 

to furnish statements under section 

6052 and remove the deemed 

compliance rule, which applied only to 

years before 1972. 

Proposed Effective/Applicability Date 

These proposed regulations will be 

effective on the date of the publication 

of the Treasury Decision adopting these 

rules as final in the Federal Register. 

These proposed regulations amend the 

effective/applicability date provisions in 

§ 31.6051–1, § 31.6051–3, and 

§ 301.6109–4, and add applicability date 

provisions to § 1.6052–2 and § 31.6051– 

2. Several state tax administrators have 

requested additional time to develop 

systems to process the copies of Forms 


sradovich on DSKBBY8HB2PROD with PROPOSALS
Federal Register / Vol. 82, No. 181 / Wednesday, September 20, 2017 / Proposed Rules 43923 

W–2 filed with state income tax returns 

that may contain truncated SSNs. In 

light of this request, these proposed 

regulations will not apply to Forms W– 

2 required to be furnished before 

January 1, 2019. Accordingly, these 

proposed regulations provide that these 

regulations, as amended, will be 

applicable for statements required to be 

filed and furnished under sections 6051 

and 6052 after December 31, 2018. 

Statement of Availability of IRS 

Documents 

IRS Revenue Procedures, Revenue 

Rulings notices, and other guidance 

cited in this preamble are published in 

the Internal Revenue Bulletin (or 

Cumulative Bulletin) and are available 

from the Superintendent of Documents, 

U.S. Government Printing Office, 

Washington, DC 20402, or by visiting 

the IRS Web site at www.irs.gov. 

Special Analyses 

Certain IRS regulations, including this 

one, are exempt from the requirements 

of Executive Order 12866, as 

supplemented and reaffirmed by 

Executive Order 13563. Therefore, a 

regulatory assessment is not required. 

Because these proposed regulations do 

not impose a collection of information 

on small entities, the Regulatory 

Flexibility Act (5 U.S.C. chapter 6) does 

not apply. Pursuant to section 7805(f) of 

the Code, this notice of proposed 

rulemaking has been submitted to the 

Chief Counsel for Advocacy of the Small 

Business Administration for comment 

on its impact on small business. 

Comments and Requests for Public 

Hearing 

Before these proposed regulations are 

adopted as final regulations, 

consideration will be given to any 

comments that are submitted timely to 

the IRS as prescribed in the preamble 

under the ADDRESSES section. The 

Treasury Department and the IRS 

request comments on all aspects of these 

proposed regulations. All comments 

submitted will be made available at 

www.regulations.gov or upon request. A 

public hearing may be scheduled if 

requested in writing by any person that 

timely submits written comments. If a 

public hearing is scheduled, notice of 

the date, time, and place for the hearing 

will be published in the Federal 

Register. 

Drafting Information 

The principal author of these 

proposed regulations is Eliezer Mishory 

of the Office of the Associate Chief 

Counsel (Procedure and 

Administration). 

List of Subjects 

26 CFR Part 1 

Income taxes, Reporting and 

recordkeeping requirements. 

26 CFR Part 31 

Employment taxes, Income taxes, 

Penalties, Pensions, Railroad 

Retirement, Reporting and 

recordkeeping requirements, Social 

Security, Unemployment compensation. 

26 CFR Part 301 

Employment taxes, Estate taxes, 

Excise taxes, Gift taxes, Income taxes, 

Penalties, Reporting and recordkeeping 

requirements. 

Proposed Amendments to the 

Regulations 

Accordingly, 26 CFR parts 1, 31 and 

301 are proposed to be amended as 

follows: 

PART 1—INCOME TAXES 

■ Paragraph 1. The authority citation 

for part 1continues to read in part as 

follows: 

Authority: 26 U.S.C. 7805, unless 

otherwise noted. 

* * * * * 

■ Par. 2. Section 1.6052–2 is amended 

by: 

■ 1. Revising paragraph (a). 

■ 2. Removing paragraph (b). 

■ 3. Redesignating paragraph (e) as new 

paragraph (b). 

■ 4. Revising paragraphs (c) and (d). 

■ 5. Removing paragraphs (f) and (g). 

The revisions read as follows: 

§ 1.6052–2 Statements to be furnished 

employees with respect to wages paid in 

the form of group-term life insurance. 

(a) Requirement. Every employer 

filing a return under section 6052(a) and 

§ 1.6052–1, with respect to group-term 

life insurance on the life of an 

employee, shall furnish to the employee 

whose name is set forth in such return 

the tax return copy and the employee’s 

copy of Form W–2. Each copy of Form 

W–2 must show the information 

required to be shown on the Form 

W–2 filed under § 1.6052–1. An 

employer may truncate an employee’s 

social security number to appear in the 

form of an IRS truncated taxpayer 

identification number (TTIN) on copies 

of Form W–2 furnished to the employee. 

For provisions relating to the use of 

TTINs, see § 301.6109–4 of this chapter 

(Procedure and Administration 

Regulations). The rules in § 31.6051–1 

of this chapter (Employment Taxes and 

Collection of Income Tax at Source 

Regulations) shall apply with respect to 

the means and time (including 

extensions thereof) for furnishing the 

employee’s copy of Form W–2 required 

by this section to the employee and 

making corrections to such form. 

* * * * * 

(c) Penalty. For provisions relating to 

the penalty provided for failure to 

furnish a statement under this section, 

see section 6722 and the regulations 

thereunder. 

(d) Applicability date. This section is 

applicable for statements required to be 

furnished under section 6052 after 

December 31, 2018. 

PART 31—EMPLOYMENT TAXES AND 

COLLECTION OF INCOME TAX AT 

SOURCE 

■ Par. 3. The authority citation for part 

31 is amended by adding an entry in 

numerical order to read in part as 

follows: 

Authority: 26 U.S.C. 7805 * * * 

Section 31.6051–3 also issued under 26 

U.S.C. 6051. 

* * * * * 

■ Par. 4. Section 31.6051–1 is amended 

by: 

■ 1. Revising paragraphs (a)(1)(i)(b) and 

(b)(1)(ii). 

■ 2. Removing paragraph (d)(1)(ii)(C). 

■ 3. Revising paragraphs (f), (h)(2), and 

(i). 

■ 4. Removing paragraph (j)(8). 

■ 5. Adding paragraph (k). 

The revisions and addition read as 

follows: 

§ 31.6051–1 Statements for employees. 

(a) * * * 

(1) * * * 

(i) * * * 

(b) The name, address, and social 

security number of the employee, which 

may be truncated to appear in the form 

of an IRS truncated taxpayer 

identification number (TTIN) on copies 

of Forms W–2 that are furnished to the 

employee (for provisions relating to the 

use of TTINs, see § 301.6109–4 of this 

chapter (Procedure and Administration 

Regulations)), if wages as defined in 

section 3121(a) have been paid or if the 

Form W–2 is required to be furnished to 

the employee, 

* * * * * 

(b) * * * 

(1) * * * 

(ii) The name, address, and social 

security number of the employee, which 

may be truncated to appear in the form 

of an IRS truncated taxpayer 

identification number (TTIN) on copies 

of Forms W–2 that are furnished to the 

employee (for provisions relating to the 

use of TTINs, see § 301.6109–4 of this 


sradovich on DSKBBY8HB2PROD with PROPOSALS
43924 Federal Register / Vol. 82, No. 181 / Wednesday, September 20, 2017 / Proposed Rules 

chapter (Procedure and Administration 

Regulations)), 

* * * * * 

(f) Statements with respect to 

compensation, as defined in the 

Railroad Retirement Tax Act—(1) 

Notification of possible credit or refund. 

With respect to compensation (as 

defined in section 3231(e)), every 

employer (as defined in section 3231(a)) 

who is required to deduct and withhold 

from an employee (as defined in section 

3231(b)) a tax under section 3201, shall 

include on or with the statement 

required to be furnished to such 

employee under section 6051(a), a 

notice concerning the provisions of this 

title with respect to the allowance of a 

credit or refund of the tax on wages 

imposed by section 3101(b) and the tax 

on compensation imposed by section 

3201 or 3211 which is treated as a tax 

on wages imposed by section 3101(b). 

(2) Information to be supplied to 

employees upon request. With respect to 

compensation (as defined in section 

3231 (e)), every employer (as defined in 

section 3231(a)) who is required to 

deduct and withhold tax under section 

3201 from an employee (as defined in 

section 3231(b)) who has also received 

wages during such year subject to the 

tax imposed by section 3101(b), shall 

upon request of such employee furnish 

to him or her a written statement 

showing— 

(i) The total amount of compensation 

with respect to which the tax imposed 

by section 3101(b) was deducted; 

(ii) The total amount of employee tax 

under section 3201 deducted and 

withheld (increased by any adjustment 

in the calendar year for overcollection, 

or decreased by any adjustment in such 

year for undercollection, of such tax 

during any prior year); and 

(iii) The proportion thereof (expressed 

either as a dollar amount, or a 

percentage of the total amount of 

compensation as defined in section 

3231(e), or as a percentage of the total 

amount of employee tax under section 

3201) withheld as tax under section 

3201 for financing the cost of hospital 

insurance benefits. 

(h) * * * 

(2) Time for furnishing statement. The 

statement required by this paragraph (h) 

for a calendar year shall be furnished— 

(i) In the case of an employee who is 

required to be furnished a Form W–2, 

Wage and Tax Statement, for the 

calendar year, within one week of 

(before or after) the date that the 

employee is furnished a timely Form 

W–2 for the calendar year (or, if a Form 

W–2 is not so furnished, on or before 

the date by which it is required to be 

furnished); and 

(ii) In the case of an employee who is 

not required to be furnished a Form W– 

2 for the calendar year, on or before 

February 7 of the year succeeding the 

calendar year. 

* * * * * 

(i) Cross references. For provisions 

relating to the penalties provided for the 

willful furnishing of a false or 

fraudulent statement, or for the willful 

failure to furnish a statement, see 

§ 31.6674–1 and section 7204. For 

additional provisions relating to the 

inclusion of identification numbers and 

account numbers in statements on Form 

W–2, see §§ 31.6109–1 and 31.6109–4. 

For the penalties applicable to 

information returns and payee 

statements, see sections 6721–6724 and 

the regulations thereunder. 

* * * * * 

(k) Applicability date. This section is 

applicable for statements required to be 

furnished under section 6051 after 

December 31, 2018. 

■ Par. 5. Section 31.6051–2 is amended 

by revising paragraphs (a) and (c) and 

adding paragraph (d) to read as follows: 

§ 31.6051–2 Information returns on Form 

W–3 and Social Security Administration 

copies of Forms W–2. 

(a) In general. Every employer who is 

required to make a return of tax under 

§ 31.6011(a)–1 (relating to returns under 

the Federal Insurance Contributions 

Act), § 31.6011(a)–4 (relating to returns 

of income tax withheld from wages), or 

§ 31.6011(a)–5 (relating to monthly 

returns) for a calendar year or any 

period therein, shall file the Social 

Security Administration copy of each 

Form W–2 required under § 31.6051–1 

to be furnished by the employer with 

respect to wages paid during the 

calendar year. An employer may not 

truncate an employee’s social security 

number to appear in the form of an IRS 

truncated taxpayer identification 

number (TTIN) on copies of Form W–2 

filed with the Social Security 

Administration. Each Form W–2 and the 

transmittal Form W–3 shall together 

constitute an information return to be 

filed with the Social Security 

Administration as indicated on the 

instructions to such forms. For the 

requirement to submit the information 

on Form W–2 on magnetic media, see 

section 6011(e) and § 301.6011–2 of this 

chapter (Procedure and Administration 

Regulations). 

* * * * * 

(c) Cross references. For provisions 

relating to the time for filing the 

information returns required by this 

section and to extensions of the time for 

filing, see sections 6071 and 6081 and 

the regulations thereunder. For the 

penalties applicable to information 

returns and payee statements, see 

sections 6721 through 6724 and the 

regulations thereunder. 

(d) Applicability date. This section is 

applicable for statements required to be 

filed under section 6051 after December 

31, 2018. 

■ Par. 6. Section 31.6051–3 is amended 

by revising paragraphs (a)(1)(i), (b)(1), 

(e)(3), and (f) and removing paragraph 

(g) to read as follows: 

§ 31.6051–3 Statements required in case of 

sick pay paid by third parties. 

(a) * * * 

(1) * * * 

(i) The name and, if there is 

withholding from sick pay under 

section 3402(o) and the regulations 

thereunder, the social security account 

number of the payee (the payee’s social 

security number may not be truncated to 

appear in the form of an IRS truncated 

taxpayer identification number (TTIN)), 

(b) * * * 

(1) All of the information required to 

be furnished under paragraph (a) of this 

section, but the employer may truncate 

the payee’s social security number to 

appear in the form of an IRS truncated 

taxpayer identification number (TTIN) 

on copies of Forms W–2 that are 

furnished to the payee (for provisions 

relating to the use of TTINs, see 

§ 301.6109–4 of this chapter (Procedure 

and Administration Regulations)), 

* * * * * 

(e) * * * 

(3) The provisions of section 6109 

(relating to identifying numbers) and the 

regulations thereunder shall be 

applicable to Form W–2 and to any 

payee of sick pay to whom a statement 

on Form W–2 is required by this section 

to be furnished. The employer must 

include the social security number of 

the payee on all copies of Forms W–2. 

The employer may truncate the payee’s 

social security number to appear in the 

form of an IRS truncated taxpayer 

identification number (TTIN) on copies 

of Forms W–2 that are furnished to the 

payee. For provisions relating to the use 

of truncated taxpayer identification 

numbers (TTINs), see § 301.6109–4 of 

this chapter (Procedure and 

Administration Regulations). 

(f) Applicability date. This section is 

applicable for statements required to be 

furnished under section 6051 after 

December 31, 2018. 

PART 301—PROCEDURE AND 

ADMINISTRATION 

■ Par. 7. The authority citation for part 

301 continues to read in part as follows: 


sradovich on DSKBBY8HB2PROD with PROPOSALS
Federal Register / Vol. 82, No. 181 / Wednesday, September 20, 2017 / Proposed Rules 43925 

Authority: 26 U.S.C. 7805 * * * 

■ Par. 8. Section 301.6109–4 is 

amended by revising paragraphs 

(b)(2)(ii) and (iii), (b)(3), and (c) to read 

as follows: 

§ 301.6109–4 IRS truncated taxpayer 

identification numbers. 

* * * * * 

(b) * * * 

(2) * * * 

(ii) A TTIN may not be used on a 

statement or document if a statute, 

regulation, other guidance published in 

the Internal Revenue Bulletin, form, or 

instructions, specifically requires use of 

a SSN, ITIN, ATIN, or EIN and does not 

specifically state that the taxpayer 

identifying number may be truncated. 

For example, a TTIN may not be used 

on a Form W–8ECI or Form W–8IMY 

because the forms and/or form 

instructions specifically prescribe use of 

an SSN, EIN, or ITIN for the U.S. 

taxpayer identification number. 

(iii) A TTIN may not be used on any 

return, statement, or other document 

that is required to be filed with or 

furnished to the Internal Revenue 

Service or the Social Security 

Administration in the case of forms 

required to be filed with the Social 

Security Administration under the 

internal revenue laws. 

* * * * * 

(3) Examples. The provisions of this 

paragraph (b) are illustrated by the 

following examples: 

(i) Example 1. Pursuant to section 6051(d) 

and § 31.6051–2(a) of this chapter, Employer 

files the Social Security Administration copy 

of Employee’s Form W–2, Wage and Tax 

Statement, with the Social Security 

Administration. Employer may not truncate 

any identifying number on the Social 

Security Administration copy. Pursuant to 

section 6051(a) and § 31.6051–1(a)(1)(i) of 

this chapter, Employer furnishes copies of 

Form W–2 to Employee. There are no 

applicable statutes, regulations, other 

published guidance, forms, or instructions 

that prohibit use of a TTIN on Form W–2, 

and § 31.6051–1(a)(1)(i) specifically permits 

truncating employees’ SSNs. Accordingly, 

Employer may truncate Employee’s SSN to 

appear in the form of a TTIN on copies of 

Form W–2 furnished to Employee. Employer 

may not truncate its own EIN on copies of 

Form W–2 furnished to Employee. 

(ii) Example 2. On April 5, year 1, Donor 

contributes a used car with a blue book value 

of $1100 to Charitable Organization. On April 

20, year 1, Charitable Organization sends 

Donor copies B and C of the Form 1098–C 

as a contemporaneous written 

acknowledgement of the $1100 contribution 

as required by section 170(f)(12). In lateFebruary, year 2, Charitable Organization 

prepares and files copy A of Form 1098–C 

with the IRS, reporting Donor’s donation of 

a qualified vehicle in year 1. Charitable 

Organization may truncate Donor’s SSN to 

appear in the form of a TTIN in the Donor’s 

Identification Number box on copies B and 

C of the Form 1098–C because copies B and 

C of the Form 1098–C are documents 

required by the Internal Revenue Code and 

regulations to be furnished to another person; 

there are no applicable statutes, regulations, 

other published guidance, forms or 

instructions that prohibit the use of a TTIN 

on those copies; and there are no applicable 

statutes, regulations, other published 

guidance, forms, or instructions that 

specifically require use of an SSN or other 

identifying number on those copies. 

Charitable Organization may not truncate its 

own EIN on copies B and C of the Form 

1098–C because a person cannot truncate its 

own taxpayer identifying number on any 

statement or other document the person 

furnishes to another person. Charitable 

Organization may not truncate any 

identifying number on copy A of the Form 

1098–C because copy A is required to be filed 

with the IRS. 

(c) Applicability date. This section is 

applicable to returns, statements and 

other documents required to be filed or 

furnished after December 31, 2018. 

Kirsten Wielobob, 

Deputy Commissioner for Services and 

Enforcement. 

[FR Doc. 2017–19910 Filed 9–18–17; 11:15 am] 

BILLING CODE 4830–01–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 52 

[EPA–R07–OAR–2017–0208; FRL–9967–92– 

Region 7] 

Approval of Implementation Plans; 

State of Iowa; Elements of the 

Infrastructure SIP Requirements for 

the 2010 Nitrogen Dioxide National 

Ambient Air Quality Standard (NAAQS) 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Proposed rule. 

SUMMARY: The Environmental Protection 

Agency (EPA) is proposing to approve 

elements of a State Implementation Plan 

(SIP) submission, and an amended SIP 

submission from the State of Iowa for 

the 2010 Nitrogen Dioxide (NO2) 

National Ambient Air Quality Standard 

(NAAQS). Infrastructure SIPs address 

the applicable requirements of Clean Air 

Act (CAA) section 110, which requires 

that each state adopt and submit a SIP 

for the implementation, maintenance, 

and enforcement of each new or revised 

NAAQS promulgated by the EPA. These 

SIPs are commonly referred to as 

‘‘infrastructure’’ SIPs. The infrastructure 

requirements are designed to ensure that 

the structural components of each 

state’s air quality management program 

are adequate to meet the state’s 

responsibilities under the CAA. 

In the ‘‘Rules and Regulations’’ 

section of this Federal Register, we are 

approving the state’s SIP revisions as a 

direct final rule without a prior 

proposed rule. If we receive no adverse 

comment, we will not take further 

action on this proposed rule. 

DATES: Comments must be received on 

or before October 20, 2017. 

ADDRESSES: Submit your comments, 

identified by Docket ID No. EPA–R07– 

OAR–2017–0208, to https://

www.regulations.gov. Follow the online 

instructions for submitting comments. 

Once submitted, comments cannot be 

edited or removed from Regulations.gov. 

The EPA may publish any comment 

received to its public docket. Do not 

submit electronically any information 

you consider to be Confidential 

Business Information (CBI) or other 

information whose disclosure is 

restricted by statute. Multimedia 

submissions (audio, video, etc.) must be 

accompanied by a written comment. 

The written comment is considered the 

official comment and should include 

discussion of all points you wish to 

make. The EPA will generally not 

consider comments or comment 

contents located outside of the primary 

submission (i.e. on the web, cloud, or 

other file sharing system). For 

additional submission methods, the full 

EPA public comment policy, 

information about CBI or multimedia 

submissions, and general guidance on 

making effective comments, please visit 

https://www2.epa.gov/dockets/ 

commenting-epa-dockets. 

FOR FURTHER INFORMATION CONTACT: 

Heather Hamilton, Air Planning and 

Development Branch, U.S. 

Environmental Protection Agency, 

Region 7, 11201 Renner Boulevard, 

Lenexa, KS 66219 at (913) 551–7039, or 

by email at hamilton.heather@epa.gov. 

SUPPLEMENTARY INFORMATION: This 

document proposes to take direct final 

action on Iowa’s infrastructure SIP 

submissions for the 2010 NO2 NAAQS. 

We have published a direct final rule 

approving the State’s SIP revision(s) in 

the ‘‘Rules and Regulations’’ section of 

this Federal Register, because we view 

this as a noncontroversial action and 

anticipate no relevant adverse comment. 

We have explained our reasons for this 

action in the preamble to the direct final 

rule. A detailed Technical Support 

Document (TSD) is included in this 

rulemaking docket to address the 

following: A description of Clean Air 

Act section 110(a)(1) and (2) 


sradovich on DSKBBY8HB2PROD with PROPOSALS