SSN Policy Manual

Policy Manual

Complying with Internal Revenue Service Requirements The law, 26 USC §6109(d) stipulates that when an individual's identifying number is specified (or used) by the Internal Revenue Service (IRS), the identifying number will be the social security number that was assigned to that individual by the Social Security Administration. Specifically, the law says: (d) Use of social security account number The social security account number issued to an individual for purposes of section 205(c)(2)(A) of the Social Security Act shall, except as shall otherwise be specified under regulations of the Secretary, be used as the identifying number for such individual for purposes of this title. 26 USC §6109(d) According to the Internal Revenue Service, employers are required to ask an employee for a social security number and record the number if it is available or make a notation "unknown" if the number is not available. There is no legal requirement that an employee have a social security number nor is there a requirement that the employer obtain a social security number from an employee.

DEPARTMENT OF THPI m S U R Y INTERNAL REVRWE SERVICE PO BOX 245 DPl02G BENSALEM, PA 19020

Your letter, dated Dcccmber 1 , 1998, was mcenrly forwarded ro my office for reply. Your inquiry concerned whctlm ir is ncccssiry for an tn~ployerto have a Social Smurity Number (SSN) in order lo bt: hired. Section 6109(61 of the Intenla1 Revenue Codc (the Codc) provides that the social security account nurnbcr issued to an individ~ulfor purposes of Section 205(c)(Z)(A) of thc Social Security Act shall, except as orhcnwse specified b> rcgulaiions, bc us~vl as thc individual's identifying ~~unlhcforr purposcs of federal tax taws. En1p1oyct.s must riolify their eniployers of hx ~dcntlficationnunlbers as soon as they are hired. Rcgdation Sect~on31.60ll(b) mandates all employees who llavc no social security nllmber lo apply for one on Form SS-5 (Appllcauon I'or Soclal Srcuniq Number) withm scvm days aAcr thcy arc h~rd. If they have no ~derit~ficaltonumber. t h y must show the~r employers a receipt from Ihe Soc~alSccunty Adnirn~stra~~tonndtcatlng that an application has been filed. or an nppl~catiantor statement conta~nlngs ~ m ~ l~anr forrnarion)on Form SS-5, or a duplicate of the form thc ernployucs have filed or tnrend to file wth the Administration. Thc name and ident~ficat~onnumber of each cmplovuc must bc entered on the records, returns, and clit~nlsot'empluyxs. If employs fail to .xl\ I ~ C en~plo\crs of theu ltlcn~~licationnumhers, crriploycrs must rcqucst thc numbers. If en~plo?ccsdo no1 hasc social sscimty numbers. crnploycrs nlust advrse them of the requirement. If cniployccs then fa11or refuse to file an applicatton, ctmployrrs rmst state rl~at fact by affidavit when they file rheir reiurns. If crnployces do not have social security numbers or rccetpts when employers file t h e ~ r eturns on Form 941 (Employer-s Quarterly Fcdcral 7 a\ lieturn), employers should attach the employees' SS-5 or stdterncnts.

Figure 1: Example of 1.R.s.'~Intimidating and Fraudulent Response