Compliance Update with Amy K
by Amy Kleinschmit
Chief Compliance Officer

IRS News.

To aid employers' efforts to protect employees from identity theft, the IRS recently finalized 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). This final rule can be found here. It’s important to note, that truncation of SSNs is not allowed on the information filed on paper or electronically with the Social Security Administration.

These regulations 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 sections 6051(a) and (f)(2) and 6052(b). This includes Forms W-2c that are furnished to correct errors on Forms W-2 that are furnished under sections 6051(a) and (f)(2) and 6052(b). The regulations do not apply to any other forms. This voluntary truncation on Forms W-2 and W-2c issued to employees after December 31, 2020.

A truncated SSN shows asterisks or Xs for the first five digits and shows the actual last four digits of the SSN. (***-**-1234 or XXX-XX-1234) The regulations also call these Truncated Taxpayer Identification Numbers (TTINs).


The Federal Financial Institutions Examination Council (FFIEC) recently announced the availability of 2018 HMDA data from 5,683 U.S. financial institutions. As discussed in the press release, “The 2018 data include information on 12.9 million home loan applications. Among them, 10.3 million were closed-end, 2.3 million were open-end, and, for another 378,000 records, pursuant to the EGRRCPA’s partial exemptions, financial institutions did not indicate whether the records were closed-end or open-end. A total of 7.7 million applications resulted in loan originations. Among them, 6.3 million were closed-end mortgage originations, 1.1 million were open-end line of credit originations, and, pursuant to the EGRRCPA’s partial exemptions, 283,000 were originations for which financial institutions did not indicate whether they were closed-end or open-end. The 2018 data include 2.0 million purchased loans, for a total of 15.1 million records. The data also include information on approximately 177,000 requests for preapprovals for home purchase loans.”

The CFPB developed the following report looking at the 2018 Mortgage Market Activity and Trends based on the HMDA data points, which can be found here.

HMDA Webinar.

The Consumer Financial Protection Bureau (CFPB) also updated their webinars and transcripts to reflect the changes made by the Economic Growth, Regulatory Relief, and Consumer Protection Act, and the interpretive and procedural rule issued by the Bureau in August 2018. You can find these updated webinars and material here.


The Federal Financial Institutions Examination Council (FFIEC) members, which includes the National Credit Union Administration, recently issued a press release stressing the benefits of using a “standardized approach to assess and improve cybersecurity preparedness.”

The press release provides that institutions may choose from a variety of standardized tools aligned with industry standards and best practices to assess their cybersecurity preparedness and goes on to provide links to four different tools that are available.  

Tax Withholding Estimator.

The IRS will be hosting a free webinar on how to use its Tax Withholding Estimator on Thursday, September 19, 2019, at 1 PM central time. Staff may find this webinar helpful as it will cover the following:

  • Illustrate the user-friendly features and design improvements of the new IRS Withholding Estimator to help taxpayers check their withholding;
  • Demonstrate how to use the new Withholding Estimator;
  • Explain why taxpayers need to do a Paycheck Checkup to check their withholding;
  • Plus a live Q & A.

Register for this webinar here. If you’re not able to attend, this webinar will be archived on the IRS Video Portal about 4 weeks after the event. Find previous archived webinars on

As always, CUAD members may contact Amy Kleinschmit with any compliance related questions.



<< Go to Memo List