Why It is Illegal for Me to Request or Use a Taxpayer Identification Number,
Form #04.205 (OFFSITE LINK)-attach this to any government form
or application which requests either a Social Security Number or a Taxpayer
Identification Number.
SEDM Forms Page
About SSNs and TINs on Government Forms and Correspondence-SEDM Forms Page
IRS Website: Taxpayer Identification Numbers
IRS Website: Individual Taxpayer Identification Number (ITIN)
26 U.S.C. 7701(a)(41)
TITLE 26 > Subtitle F > CHAPTER 79 > § 7701
(a)
(41) TIN
The term “TIN” means the identifying number assigned to a person under section 6109.
March 10, 2004 Testimony of Nina Olsen before House Ways and Means Committee on Individual Taxpayer Identification Numbers (ITINs)
Treasury
Inspector General Report 2004-30-023: The Internal Revenue Service's
Individual Taxpayer Identification Number Creates Significant Challenges
for Tax Administration
From a tax policy perspective, unauthorized resident aliens benefit from the tax law since they are treated virtually the same as U.S. citizens and lawful resident aliens. An unauthorized resident alien is entitled to the same deductions and credits, except for the Earned Income Tax Credit (EITC). Therefore, unauthorized resident aliens are eligible for the Additional Child Tax Credit (ACTC), which is one of only two major credits that can result in a Federal Government payment above the tax liability. In TY 2001, $160.5 million was given to approximately 203,000 unauthorized resident aliens, with about 190,000 of these filers having no tax liability and receiving $151 million.
26 C.F.R. §301.6109-1(d)(3)
(3) IRS individual taxpayer identification number --
(i) Definition.
The term IRS individual taxpayer identification number means a taxpayer identifying number issued to an alien individual by the Internal Revenue Service, upon application, for use in connection with filing requirements under this title. The term IRS individual taxpayer identification number does not refer to a social security number or an account number for use in employment for wages. For purposes of this section, the term alien individual means an individual who is not a citizen or national of the United States.
31 C.F.R. §306.10 General
Title 31: Money and Finance: Treasury
PART 306—GENERAL REGULATIONS GOVERNING U.S. SECURITIES
Subpart B—Registration
The registration used must express the actual ownership of a security and may not include any restriction on the authority of the owner to dispose of it in any manner, except as otherwise specifically provided in these regulations. The Treasury Department reserves the right to treat the registration as conclusive of ownership. Requests for registration should be clear, accurate, and complete, conform with one of the forms set forth in this subpart, and include appropriate taxpayer identifying numbers. 2 The registration of all bonds owned by the same person, organization, or fiduciary should be uniform with respect to the name of the owner and, in the case of a fiduciary, the description of the fiduciary capacity. Individual owners should be designated by the names by which they are ordinarily known or under which they do business, preferably including at least one full given name. The name of an individual may be preceded by any applicable title, as, for example, Mrs., Miss, Ms., Dr., or Rev., or followed by a designation such as M.D., D.D., Sr., or Jr. Any other similar suffix should be included when ordinarily used or when necessary to distinguish the owner from a member of his family. A married woman's own given name, not that of her husband, must be used, for example, Mrs. Mary A. Jones, not Mrs. Frank B. Jones. The address should include, where appropriate, the number and street, route, or any other local feature and the Zip Code.
2 Taxpayer identifying numbers are not required for foreign governments, nonresident aliens not engaged in trade or business within the United States, international organizations and foreign corporations not engaged in trade or business and not having an office or place of business or a financial or paying agent within the United States, and other persons or organizations as may be exempted from furnishing such numbers under regulations of the Internal Revenue Service.
31 C.F.R. §1020.410: Additional records to be made and retained by banks
Title 31. Money and Finance: Treasury
Subtitle B. Regulations Relating to Money and Finance
Chapter X. FINANCIAL CRIMES ENFORCEMENT NETWORK, DEPARTMENT OF THE TREASURY
Subpart D. Records Required To Be Maintained By Banks
31 C.F.R. § 1020.410 - Records to be made and retained by banks.
(b)(3) A taxpayer identification number required under paragraph (a)(1) of this section need not be secured for accounts or transactions with the following:
(i) Agencies and instrumentalities of Federal, state, local or foreign governments;
(ii) judges, public officials, or clerks of courts of record as custodians of funds in controversy or under the control of the court;
(iii) aliens who are (A) ambassadors, ministers, career diplomatic or consular officers, or (B) naval, military or other attaches of foreign embassies and legations, and for the members of their immediate families;
(iv) aliens who are accredited representatives of international organizations which are entitled to enjoy privileges, exemptions and immunities as an international organization under the International Organization Immunities Act of December 29, 1945 (22 U.S.C. 288), and the members of their immediate families;
(v) aliens temporarily residing in the United States for a period not to exceed 180 days; (vi) aliens not engaged in a trade or business in the United States who are attending a recognized college or university or any training program, supervised or conducted by any agency of the Federal Government;
(vii) unincorporated subordinate units of a tax exempt central organization which are covered by a group exemption letter,
(viii) a person under 18 years of age with respect to an account opened as a part of a school thrift savings program, provided the annual interest is less than $10; (ix) a person opening a Christmas club, vacation club and similar installment savings programs provided the annual interest is less than $10; and
(x) non-resident aliens who are not engaged in a trade or business in the United States. In instances described in paragraphs (a)(3), (viii) and (ix) of this section, the bank shall, within 15 days following the end of any calendar year in which the interest accrued in that year is $10 or more use its best effort to secure and maintain the appropriate taxpayer identification number or application form therefor.
Taxpayer Identification Numbers (TINs)-IRS Website
Internal Revenue Manual (I.R.M.), Section 21.6.2: Adjusting TIN-Related Problems
Who are "taxpayers" and who needs a "Taxpayer Identification Number"?
Great IRS Hoax, Section 5.4.14: You Don't Have to Provide your Social Security Number on your Tax Return
Social Security: Mark of the Beast
IRS Form W-7: Application for IRS Individual Taxpayer Identification Number (ITIN)
IRS Form W-9: Request for Taxpayer Identification Number
Internal Revenue Manual, Exhibit 4.4.1-31 (09-01-2003): Taxpayer Identification Number
Internal Revenue Manual (I.R.M.), Exhibit 20.1.7-4: TIN Validation
The TIN Validation process compares the taxpayer identification number (TIN) and name control (the first four characters of a surname or first four characters of the first significant word in a non-individual's title) against certain IRS or Social Security Administration (SSA) files.
- The NAP–1 file, a number bank which contains all social security numbers (SSNs) ever issued and all of the name controls ever associated with those SSNs.
- The weekly accretion file, a weekly update to the NAP–1 received by SSA.
- The EIN/Name Control file, a file created and maintained by the Service which contains all employer identification numbers (EINs) and the name controls associated with them.
The matching process:
- The Service attempts to match each name and TIN combination provided on all information returns against the three files listed above.
- The first attempt is made against the NAP–1 file. If no match is found, an attempt is made against the EIN/Name Control file.
- If the TIN matches, an attempt to match the name control provided is made.
- If the name control is not provided, an attempt to develop name controls is made by creating name controls from each word separated by space on each name line. Both name lines 1 and 2 are read, totaling 80 characters, 40 characters for each name line.
- Extract matches are attempted first, followed by proximal matches.
26 C.F.R. §1.1441-6 Claim of reduced withholding under an income tax treaty.
(c) Exemption from requirement to furnish a taxpayer identifying number and special documentary evidence rules for certain income.
(1) General rule.
In the case of income described in paragraph (c)(2) of this section, a withholding agent may rely on a beneficial owner withholding certificate described in paragraph (b)(1) of this section without regard to the requirement that the withholding certificate include the beneficial owner's taxpayer identifying number. In the case of payments of income described in paragraph (c)(2) of this section made outside the United States (as defined in Sec. 1.6049-5(e)) with respect to an offshore account (as defined in Sec. 1.6049-5(c)(1)), a withholding agent may, as an alternative to a withholding certificate described in paragraph (b)(1) of this section, rely on a certificate of residence described in paragraph (c)(3) of this section or documentary evidence described in paragraph (c)(4) of this section, relating to the beneficial owner, that the withholding agent has reviewed and maintains in its records in accordance with Sec. 1.1441-1(e)(4)(iii). In the case of a payment to a person other than an individual, the certificate of residence or documentary evidence must be accompanied by the statements described in paragraphs (c)(5)(i) and (ii) of this section regarding limitation on benefits and whether the amount paid is derived by such person or by one of its interest holders. The withholding agent maintains the reviewed documents by retaining either the documents viewed or a photocopy thereof and noting in its records the date on which, and by whom, the documents were received and reviewed. This paragraph (c)(1) shall not apply to amounts that are exempt from withholding based on a claim that the income is effectively connected with the conduct of a trade or business in the United States.
About the W-9 Form
In defense of a "lady in distress from the IRS" (or, their unwitting co-conspirators), we have successfully dealt with this issue. A sales agent (for a retail store), purported to require "a completed W-9 in order for payment to be processed." (Their emphasis!) C.U.R.E.'s positive response was two-fold, and resulted in due payment — no questions asked . . .
First, the letter/demand was returned with the blank Form W-9 enclosed. Second, a three-page letter was written, explaining the illegalities of the purported "requirement" — and its federal penalties! Third, upon receipt of the would-be victim's letter, the Accounts Payable Dept. wrote: "the corporate office has processed your invoice. We regret any inconvenience . . ." Success!
More specifically; here's essentially what was involved: The IRS's Form W-9 is captioned as follows:
A "Request" is NOT a requirement!
The letter stated:
- There is NO "OMB No." displayed (at the upper-right), of Form W-9. The Paperwork Reduction Act of 1980 (44 U.S. Code, Section 3501. et seq.), Section 3512. Public Protection, states that, without a current control number asigned by the Director (of the Office of Management and Budget), "no person shall be subject to any penalty for failing to maintain or provide information to any agency." (And certainly, to any private company!)
- 18 U.S. Code — CRIMES AND CRIMINAL PROCEDURE; Ch. 95, RACKETEERING; Section 1951. Interference with commerce by threats and violence, sub-section (a), states that: "Whoever . . . affects commerce . . . by extortion or attempts to do so . . . shall be fined under this title or imprisoned not more than twenty years, or both." (!) (That could'a stopped 'em, but it went on to say . . .)
- 42 U.S. Code — THE PUBLIC HEALTH AND WELFARE; Section 408. Penalties, sub-section (a), states that: "In general ... Whoever ... (8) discloses, uses, or compels the disclosure of the social security number of any person in violation of the laws of the United States; shall be guilty of a felony under title 18 or imprisoned for not more than five years, or both". (Stops 'em!)
Exhibit A and A-1 of C.U.R.E.'s Complete Withholding Exemption Certificate, consists of such SSN information.
