SSN Policy Manual

Policy Manual

Request for IRS Statement Regarding Penalty

lnternal Revenue Service Attention CC: COW: T P. 0. Box 7604 Ben Franklin Station Washington, D.C., 20044

Dear Gentle person:

I am writing on behalf of my business. Would you please send a policy letter explaining the policy of waiver of penalty provided by 26 USC $6724(a) pursuant to circuinstances as provided for in 26 USC §6109(a)(3),26 USC $6721(a)(2)(B)and $6721(c)(l)(B)? In the way of explanation, the circumstances are as follows: We are attempting to hire an individual who does not have a Social Security Number, does not believe in Social lnsurance on religious grounds, will not permit anyone to make application for a number on his behalf, and does not believe in being numbered by TIN of any sort. We wish to accommodate this individual's religious beliefs but do not want to incur a penalty for failure to provide the lRS with a SSN or TIN number on his W2 return. We are of the understanding that 26 USC $6109(a)(3) requires the employer to REQUEST the number fkom the employee. If the employee refuses to provide a number, regardless of the reason, then a penalty is normally imposed on the employer pursuant to 26 USC $6721(a)(2)(B). However, the provisions of 26 USC Ij6721(c)(l)(B) applies because the penalty provided in §6721(a) is only $50.00, which is a "de-minimis failure" and it would only amount to one return for one employee a year. In addition, the employer is able to provide an affidavit to the IRS that it requested the SSN and thus made a good faith effort to obtain the number and so the failure to obtain it was due to "reasonable cause" and not for any wilful neglect by the employer. The proposed penalty should thus be waived pursuant toe 26 USC Ij6724(a). If you would please send me a general information letter, or policy-letter, explaining that the penalties will be waived if the SSN or TIN number not on the W2 pursuant to the above IRC provisions, for reasonable cause, then we will be able to hire this individual and avoid any possible hiring discriminationbased upon his religious beliefs.

Best regards,