Legal Question in Tax Law in California
social security number
Can a employer be held liable, if the employer do not withhold the withholding taxes from a an employee who refuses to disclosure his social security number to the employer?
as a employer, i recevied a letter from one of my employee, stating in part:
the law requires you, as the payor, to request disclosure of my taxpayer identifition number. if i refuse, the law requires you to make a second request a second time, you are reuest by law to submit the requested forms to the irs. together with an affidvit so stateing that you have complied with these requirements. there is no penalty and there is no 31% withholding rate until disclosure is made. please review 26 usc 6109 and 26 cfr part 301.6109-1(c), relating to identifying numbers. the former $50 penalty was repealed in 1989 because it was never enforced.
2 Answers from Attorneys
Re: social security number
TELL THE EMPLOYEE TO "GO FLY A KITE". YOU WON'T BREAK THE LAW JUST FOR AN EMPLOYEE AND ALSO GET STUCK WITH HIS TAX.
Re: social security number
Yes, the employer is still liable for withholding taxes, and the penalties for failure to do so are substantial, including criminal penalties. Look at Publiation 15 from the IRS, which is available at the IRS website at http://www.irs.ustreas.gov/prod/forms_pubs/pubs/p15toc.htm.
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