The IRS has recently launched a new format for individual tax transcripts to protect taxpayer data from unauthorized disclosure and theft.
The new format will redact personally identifiable information from the Form 1040 series.? Financial entries will remain visible, which will give taxpayers and third-parties the data they need for tax preparation and income verification.
As of September 23, the new transcripts became the default format available through the IRS?s ?Get Transcripts Online? and ?Get Transcripts by Mail? program.
Additionally, 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. The Customer File Number can be created by the taxpayer or third party and will be visible on the requested tax transcript, allowing the third party to match the document to the taxpayer. A Customer File Number can be, for example, a loan account number and can?t be the taxpayer?s social security number.
There is no change in the process for students seeking income verification through Free Application for Federal Student Aid (FAFSA) or disaster victims seeking FEMA assistance. Business tax transcripts will not change as well.
Please visit the IRS website?s to read ?About the New Tax Transcript: FAQs? for additional details and see a sample of the new transcript format.