SSNs to be masked on new Savings Bonds
Tuesday, August 8th, 2006
Categorized as: Savings Bond news
Beginning this month, August 2006, the first five digits of Social Security Numbers will be replaced by asterisks on new paper Savings Bonds, according to a notice on TreasuryDirect, FAQs about the Masking of Social Security Numbers on Paper Treasury Securities.
The new process is a precaution to prevent identity theft.
No other process involving SSNs and Savings Bonds will change. In general, the SSN on a Savings Bond is only used to track it if it is lost, although it is also used by government agencies such as the Social Security Administration to check for assets owned by beneficiaries.
You must provide an SSN when investing in a Savings Bond, but it can be either the SSN of the purchaser or the SSN of the owner. A gift bond from a grandparent to a child, for example, can have the SSN of either the grandparent or the child.
You must also provide an SSN when redeeming a Savings Bond. The 1099-INT tax form reporting the interest the Savings Bond has earned to you and the IRS is submitted using the SSN of the person who cashes the bond.