FORMS: 6.2 SAMPLE LETTER FROM PRIVATE CONSULTANT TO EMPLOYER REGARDING PAYMENT FOR SERVICES USING IRS 1099 |
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The letter below is intended to be used by people who are involved in independent contracting. They should provide it to an employer or business with whom they are contracted as a way of ensuring that they don't invite trouble from the IRS but still obey the laws. Refer to section 12.6.11 for further details on the nature of 1099 forms. <<ADDRESS>> <<EMPLOYER NAME>> <<ADDRESS>> Dear Sir, As an independent contractor who has a contractual arrangement with you to provide fee for services, I would like to inform you of my intentions regarding the reporting by you of income received by me to the IRS on IRS Form 1099MISC. First of all, I wish to say that I have a strong religious and moral objection to the use of Social Security Numbers (see Revelations 13:16-18, as well as section 7.6 of my Family Constitution found on my website at http://famguardian.org for further details if you desire). Because of this, it is my wish not to be compelled to provide a social security number for the purposes of our business transaction. I have saved you and your legal counsel a lot of trouble by doing the legal research on this situation for you below. Internal Revenue Code Section 6109(a)(3) states:
The IRS regulation interpreting section 6109 provides:
However, Internal Revenue Code Section 6724, 26 USC 6724 (Supp. 1992), provides for a waiver of any penalties assessed under this code section upon a showing of reasonable cause. Section 6724(a) provides:
I fully recognize that honoring this request will result in you not being able to provide complete information on any 1099 forms you might submit about my compensation to the IRS. However, I would like to reassure you based on the above that this will not result in any additional financial or legal liability to you or to me if you provide a simple affidavit with your 1099 form (if requested by the IRS) explaining only the following facts (and nothing more):
If you wish further reassurance, you can also do a search for yourself on the phrase "1099" on the following websight to look up all the Treasury/IRS regulations that pertain to 1099 forms. http://www.access.gpo.gov/cgi-bin/cfrassemble.cgi?title=200026 (Code of Federal Regulations) http://www4.law.cornell.edu/uscode/ (U.S. Code) My privacy and peace of mind is worth the risk of a $50 fine deducted from the compensation you pay me. If you feel that the IRS will not honor the affidavit you provide, then feel free to deduct the $50 in advance from my compensation as a one-time expense per year as you see fit. However, since the fine applies for the each instance of an incomplete form, then it is my respectful request and wish that you pursue the following course of action:
I would like to remind you that the request I am making here is designed only to prevent violations of my religious and moral beliefs and unnecessary intrusions by the government into my private affairs in support of my right to privacy under the 4th Amendment. The goal is not to violate any tax laws or pay any less taxes than I am legally obligated to pay, but I have determined that the income tax laws as they are written are being grossly misapplied by the IRS. You are welcome to visit my website at http://chansen.tzo.com/Subjects/taxes/Taxes.htm for an eye-opening look and hundreds of pages of evidence documenting precisely how the tax laws are willfully and deliberately being misapplied in violation of our constitutional rights, starting with misreporting of "gross income" on W-2 forms. Finally, I wish to emphasize that it is considered discrimination and liable by the Department of Justice to refuse to hire a person who does not provide a Social Security Number. This legal conclusion was reached in the case of EEOC vs. Information Systems Consulting, Inc., heard in the United States District Court, Northern District of Texas Dallas Division. You can examine the case for yourself by consulting the following websites: http://www.txnd.uscourts.gov/ Thank you for the patience required to deal with the technical issues raised in this letter, and I apologize for the detailed nature of this correspondence, which was unavoidable. I look forward to working closely with you in the future as part of an ongoing friendship and partnership to provide superior quality service for the important needs of your organization. Sincerely, <<NAME> |