SSN Policy Manual

Sample Letters and Forms

IRS Reply

Department of the Treasury

INTERNAL REVENUE SERVICE

: Philadelphia Customer Service Center P.O. Box 245 D.P. 5810 , Bensalem, PA 19020

I am respondingto your letter, dated October 20, 1999, concerning whether an employee can refuse to give his or her social security number to an employer. Regulation Section 31.6011(b) provides that all employees who have been issued an account number by the Social Security Administration (SSA) must show the card to his or her employer. If the card issued is not available, employees must advise the employer of the name and number on the card. However, care must be exercised that the employer is correctly advised of the name and number. Employees who do not have an account number but have a receipt issued by the SSA acknowledgingthat an application for an account number has been received, must show the receipt to the employer. Employees who are unable to furnish a number or receipt to the employer must providea statement containing the information as found on Form SS-5, Application for Social Security Number, including a statement as to whether an application has previously been filed. The furnishing of a statement by the employee to the employer, however, does not relievethe employee of the obligation to make an application on Form SS-5 and file it with SSA. Provisions of the regulation also require that the application for an account number be filed within seven days of employment. Employers must advise prospective employees of the requirement to have or apply for an account number. If employees fail or refuse to provide an account number, employers must attach a signed statement to their Form 941, Employer's Quarterly Federal Tax Return, outlining the facts pertinent to the employees. You should withhold all applicable taxes, FICA, Medicare, income tax withholding, etc. If an SS-5 has been secured, it should be attached to the Form 941. The general rule is that an individual is an independent contractor if you, the payer, have the right to control or direct only the result of the work and not the means and methods of accomplishing the result. You may be interested in obtaining Publication 15-A, Employer's supplementalTax Guide, by calling our toll-free number, 1-800-829-3676. Please refer to page 4, Employee or Independent Contractor, for additional information.