BobKamman
Level 15

It's a "check digit," although it's really an alpha code for the SSN, to make sure that the SSN is entered correctly.  This is from the Internal Revenue Manual, although it refers to a different form where the letters are to the left, not the right:

Check Digit/Name Control

  1. The following describes the instructions for entering either the check digit (CD) or name control (NC) as follows:

    IF And THEN
    1. Employer identification number (EIN) is unaltered on a preprinted label EIN is used enter the two alpha characters shown to the left of the taxpayer identification number (TIN) in the Check Digit field. It will not be necessary to press the <ENTER> key.
    2. Social security number (SSN) is unaltered on a preprinted label SSN is used enter the two alpha characters shown to be left of the SSN in the Check Digit field. It will not be necessary to press the <ENTER> key.