IRS Issues Proposed Regulations Allowing Use of Truncated SSNs on W-2s: Today, the IRS issued proposed regulations that would allow employers to voluntarily truncate employees’ social security numbers (SSNs) on the copies of Forms W-2, Wage and Tax Statement, issued to employees. Rather than including an employee’s full SSN, as required under current regulations, this rule would allow the first five digits of the nine-digit SSN to be replaced with “Xs” or asterisks to aid in efforts to protect employees from identity theft. However, employers would not be able to truncate an employee’s SSN on the copy of a W-2 filed with the Social Security Administration. These regulations, if finalized, would be applicable after December 31, 2018. Comments on these proposed regulations must be submitted to the IRS by December 18, 2017.
EU Council Agrees ‘Digital Economy’ Businesses Should Pay More Tax in the EU: The EU Council of Economy and Finance Ministers (ECOFIN) agreed at their meeting on September 16 that companies providing digital services in the EU should be subject to corporate tax in the EU. Over half of the EU ministers support a proposal that would add a new concept of a virtual permanent establishment to the international tax rules. The EU Commission will draft a white paper setting out the available options in preparation for the EU Tallinn Digital Summit on September 29.