Summary of the SAFE ID Act As a way to reduce identity theft and tax fraud, the SAFE ID Act is a common-sense,

, bipartisan bill that allows for a taxpayer identification number, including a truncated Social Security number, to be used on a taxpayers W-2 form rather than the presently required complete SSN. It is being introduced today, April 15 by freshmen Reps. Joe Garcia (R, FL-26) and Trey Radel (R, FL-19).

Identity Theft is a Serious Problem and Florida Leads the Nation Nine of the ten leading cities for tax identification fraud are in Florida. According to the U.S. Department of Justice, 7% of all United States households had at least one member of the family age 12 or older who has been a victim of some sort of identity theft. According to the Federal Trade Commission, identity theft cost consumers an astonishing $1.52 billion in 2011. On average, identity theft victims spend 33 hours sorting out the myriad problems and issues that result, with 5% of victims spending at least 130 hours. Between 2008 and 2012, tax-related identity theft has risen more than 650 percent nationwide. The IRS stands to lose as much as $21 billion in revenue over the next five years due to identity theft.

Statutory Background Under current law, the IRS requires that W-2 Forms include their full Social Security Number (SSN). Other statements provided to taxpayerssuch as Forms 1099are only required to include a taxpayer identification number, not specifically a SSN.

Legislative Background As part of their efforts to combat identity theft and tax fraud, the IRS launched a pilot program that allows for the use of truncated SSNs on copies of certain tax forms provided to taxpayers. Under the pilot program, the first five digits of the SSN or taxpayer identification number are replaced with Xs or *s. This program was so well-received that the IRS proposed earlier this year making the program permanent. Because of the current legal requirement for W-2 forms to include SSNs, this pilot program, however, could not be extended to W-2 forms. The IRS and many states require taxpayers to include a copy of the their W-2 forms when filing their annual income tax returns, increasing the risk that a taxpayers SSN cou ld be stolen.