SSN Policy Manual

Financial Issues

Financial institutions also frequently cite 26 USC $6109 as their reliance for the social security number mandate:

26 USC 56109. Identifyingnumbers (a) Supplying of identifying numbers When required by regulations prescribed by the Secretary: (1) Inclusion in returns

Any person required under the authority of this title to make a return, statement, or other document shall include in such return, statement, or other document such identifying number as may be prescribed for securing proper identification of such person. (2) Furnishing number to other persons Any person with respect to whom a return, statement, or other document is required under the authority of this title to be made by another person or whose identifying number is required to be shown on a return of another person shall furnish to such other person such identifying number as may be prescribedfor securing his proper identification. (3) Furnishing number of another person Any person required under the authority of this title to make a return, statement, or other document with respect to another person shall request from such other person, and shall include in any such return, statement, or other document, such identifying number as may be prescribed for securing proper identification of such other person. This law requires the financial institution to request from certain customers that they include that identifying number on applicable returns. The law also states that a customer "shall furnish to such other person [the financial institution] such identifying number as may be prescribed." This conhsing statement does not demand a customer to furnish an identifying number (see definition for shall at beginning of this manual), but is instead telling the customer which number he shall use, should he choose to funzish it. There is no mandate within this section requiring a customer to obtain a social security number so he can provide it to the financial institution and there is no requirement for an unenumerated person to provide a social security number. Additionally, the Internal Revenue Code and regulations do not contain an absolute requirement that any financial institution must provide the customer's social security number to the Internal Revenue Service. The regulation interpreting 26 USC 56109 provides: 26 CFR 9301.6109-1(c) If he does not know the taxpayer identifying number of the other person, he shall request such number of the other person. A request should state that the identifying number is required to be furnished under the authority of law. When the person filing the return, statement, or other document does not know the number of the other person, and has complied with the request provision of this paragraph, he shall sign an affidavit on the transmittal document forwarding such returns, statement, or other documents to the Internal Revenue Service so stating. The applicable federal statute and regulation place a duty on the financial institution to request a taxpayer identifying number from the customer. However, after requesting the number, if the financial institution is still unable to obtain an identifying number from the customer, then the financial institution only needs to include an accompanying affidavit stating that the request for the number was made.

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