A "Smoking Gun" Revelation In The "Social Security Number" Rules, Excerpted From 'Lies, Damned Lies, And W-2s' In CtC:
Lies, Damned Lies, And W-2’s
The regulations for section 6109- Identifying Numbers- deal with more than just the foreign withholding provisions of the code; they also have a connection to two other “W”s used against victims of the mis-administered “income “ tax-- W-2’s and W-4’s. These are key elements of the “employment” withholding provisions of the tax law, properly used by and about “an officer, employee, or elected official of the United States, a State, or any political subdivision thereof, or the District of Columbia, or any agency or instrumentality of any one or more of the foregoing”, as well as officers of federally controlled or created corporations (if they are actually paid for services rendered as corporate officers).
As with the W-9, private-sector actors not properly subject to those provisions are tricked, corrupted and intimidated into using these forms to create false evidence against themselves and others which will be subsequently relied upon by the IRS to establish an infirm legal status for such actors and a claim upon their receipts. We’ll look at the W-2 and W-4 specifically, but first, the Identifying Number requirements regarding “employment” represent a rare thin spot in the web of deceit defending the tax scheme, and are worth a brief diversion.
Anyone who has chosen to receive the “wages” we discussed in ‘Withholding The Truth’ must have a number and provide it to their "employer". There is a portion of 301.6109-1(b) that directs such “employees” to a particular set of regulations just for them:
301.6109-1(b)(1) U.S. Persons.
The referenced regulations are responsive to section 6011, which says:
(b) Identification of Taxpayer
The Secretary is authorized to require such information with respect to persons subject to the taxes imposed by chapter 21 or chapter 24 as is necessary or helpful in securing proper identification of such persons.
The first set of the related regulations provide for requiring “employers” to secure and use identification numbers, in connection with W-2’s, among other things, but those provisions are not relevant to this discussion. The second set addresses the use of numbers by “employees”-- and they are. This is what they say:
31.6011(b)-2 Employees' account numbers.
(a) Requirement of application -- (1) In general --
(ii) On or after November 1, 1962. Every employee who on any day after October 31, 1962, is in employment for wages which are subject to the taxes imposed by the Federal Insurance Contributions Act or which are subject to the withholding of income tax from wages under section 3402 but who prior to such day has neither secured an account number nor made application therefore, shall make an application on Form SS-5 for [a social security] account number.
(3) Furnishing of account number by employee to employer. See § 31.6109-1 for additional provisions relating to the furnishing of an account number by the employee to his employer.
We’ll look at the additional provisions in 31.6109-1 in a moment, but first note that per this regulation a SS number is REQUIRED for every "employee" in employment for "wages" or subject to withholding. (Without dwelling on it, I’ll observe that the use of such qualifiers is enough to make the point by itself-- if "employee" means what the IRS wants you to think it does, paragraph (ii) above would just say, " Every employee who on any day after October 31, 1962, has neither secured an account number nor made application therefore, shall make an application on Form SS-5 for an account number." But read on...)
Now look at what the Social Security Administration has to say about having a social security number and working:
"The Social Security Act does not require a person to have an SSN to live and work in the United States, nor does it require an SSN simply for the purpose of having one. However, if someone works without an SSN, we cannot properly credit the earnings for the work performed..."
Here are the additional provisions at 301.6109-1 to which we were referred earlier:
301.6109-1 Identifying Numbers
(d) Obtaining a taxpayer identifying number-- (1) Social security number
"...Individuals who are ineligible for or do not wish to participate in the benefits of the social security program shall nevertheless obtain a social security number if they are required to furnish such a number pursuant to paragraph (b) of this section." [either as a foreign entity as discussed in ‘W-9’s...’, or in connection with “employment” as outlined above].
Clearly, the law is instructing us that one does not need a number to be a worker (and get paid for it), but one does need one to be an "employee" or to receive "wages"-- because they’re two different things.
(By the way, simply having a Social Security number does not make one into a “taxpayer”, or an “employee”. Social Security is just a welfare program with a variety of arbitrary qualifying requirements, such as having been taxed for ten years with the special “income” tax discussed in ‘Withholding The Truth’. A Social Security number is just the number assigned to the transcript that is associated with a particular person in which such qualifications are recorded, and remains even if such a person later goes into private-sector work. One’s status is based on one’s activities. To merely ‘have’ a Social Security number does not make someone working in the private sector into a “taxpayer” or into an “employee”, any more than having a driver’s license makes someone a driver, or subject to laws regarding the use of turn signals… when he or she is just walking.)
Ok, on to W-2s…