and TINs on Government Forms and Correspondence-SEDM Forms Page
26 U.S.C. 7701(a)(41)
TITLE 26 >
Subtitle F >
CHAPTER 79 > § 7701
§ 7701. Definitions
The term “TIN” means the identifying number assigned
to a person under section
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.
(3) IRS individual taxpayer identification number --
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.
Title 31: Money and Finance:
PART 306—GENERAL REGULATIONS GOVERNING U.S. SECURITIES
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.
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.
Title 31. Money and Finance: Treasury
Subtitle B. Regulations Relating to Money and Finance
Chapter X. FINANCIAL CRIMES ENFORCEMENT NETWORK, DEPARTMENT OF THE TREASURY
Part 1020. RULES FOR BANKS
Subpart D. Records Required To Be Maintained By Banks
31 C.F.R. § 1020.410 - Records to be made and retained by banks.
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;
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.
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)
- 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
- The first attempt is made against the NAP–1 file. If no
match is found, an attempt is made against the EIN/Name
- 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
- Extract matches are attempted first, followed by proximal
(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.
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
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.