SSN Policy Manual

Policy Manual

condition of employment or contract and there is no penalty for failing to obtain this disclosure. 26 CFR 301.6109-l(c) prescribes the procedures that an employer must follow. This regulation requires a payor to request disclosure of the identifying number. If disclosure is refused, a second request must be made, stating that disclosure is required by federal law, even though it is not required by federal law. If disclosure is refused a second time, the payor must attach an affidavit to any forms needing the social security number, stating that the requirements for requesting disclosure have been met. No federal or state law imposes any penalty for not obtaining disclosure of a social security number as a condition of employment. 26 USC $6723 provides that a penalty of $50.00 shall be assessed for each failure to comply with a reporting requirement. However, 26 USC $6724, provides for a waiver of any penalties assessed under the code upon a showing of reasonable cause. Section 6724(a) provides: No penalty shall be imposed under this part with respect to any failure if it is shown that such failure is due to reasonable cause and not willful neglect. 26 USC §6724(a).