What's up with the social security number?

QUOTE: Originally posted by DanCooper Hmm, what confuses me is that this SSN is something typical for the US, right ? So what have foreigners to give than ?

The question came up recently and I was told to get an ITIN, after doing a bit of research I found the following info.

You need to visit/contact your local US consulate(take a day off??), and fill in a W-7 request form. It will take 2~4 monthts to get your request processed after which you are given your ITIN.

Be warned I think FSM pays in cheques, check your local bank what the fees and processing time are for cashing/depositing one of those(normally they are very hefty). Last one I deposited(for a sold kit) took 3 weeks and they took a 25% chunk of it

I prefer IMO's usually get those cashed in 5 minutes at my local PO with minimal deductions.

HTH.

Addendum: If you do contact either the IRS or SSA, do so at the Washington level as the local area office does not have the same depth of information as the "Main office" as it were. And I get my info from Uncle who is a SSA administrator in DC and an Aunt who is in IRS fraud service and former Treasury Agent.

Just in case you were not aware of it it is not a law or legal requirement to join Social Security, merely force of habit. you may at your written request be withdrawn for the Social Security role or not join in the 1st place. Doing so only means you will not pay Social Security tax but will also not be allowed to participate in Social Security payments at 65. It does infuriate the IRS but ? Nothing they can do.

It's so you get your payment.

Taxes, social security and TRACKING(after 9/11, it's under three different US laws)

QUOTE: Originally posted by DanCooper Hmm, what confuses me is that this SSN is something typical for the US, right ? So what have foreigners to give than ?

if you mean if they bank in the US, invest here etc... they get a Tax ID number... a lot like a SSN (same format XXX-XX-XXXX) works so the money can be taxed, and tracked...

Things are a lot different here after 9/11, probably more for tracking nowadays..

Hmm, what confuses me is that this SSN is something typical for the US, right ? So what have foreigners to give than ?

Any person or business that reports transactions to either the IRS or the SSA must use this number. An example, if a bank pays you interest on your account they, by law must report that amount to the IRS for income tax purposes, and you as the account holder are informed by the bank of that amount and must, by law report it to the IRS. There are also other laws covering money laundering and terrorist activities that the bank, by law must report to the proper Federal Agencies again your SSN is required. Banks can refuse you service if you do not provide them with this number and in some cases they must report that to the proper Federal Agency. Failure by the bank(and it's employees) can lead them to civil and criminal charges including lose of license to do business fines and prison time(both the bank and/or the employee).
Any other type of action except those dealing with the IRS or the SSA or those covered by money laundering or terrorist activities are covered by the Privacy act.
It is also a good idea to limit use of your SSA except where required by Federal laws and Requalations to aviod ID theft.
If you have any questions about use of your number to contact either the IRS or the SSA for clarifation

If FSM pays you for a submission, you are at that point a paid contractor for the magazine and you will have to 1099 anything over $600 in one calender year. You are an employee if only in limited terms.

I wouldn't worry about giving them your ss number. They cannot pay you from a company account without doumenting the transaction.

Maybe I just read this somplace but sopposedly uner the Social Security Act of 1972 NO one may ask for your SSN except 1) IRS 2) An Employer(upon employment) You may not be refused any goods or services for refusing to give your SSN. Not even the Banks are allowed to have it, if you open an account they must give you a TAX ID number sor tax purposes( and I am not to sure about the IRS, after all this is a number given out to you by the SSA and not the IRS. the number is only intended for the use of the SSA to insure that the right taxes are paid in are also paid out to the right recipient)
Even if the IRS calls the SSA and asks for your SSN they will not get it as it is not legal for them to ask and it is NOT your tax payer ID #. It has only come to be common practice for them to use for this purpose. Not to sound paranoid but when your identity is linked to your SSN and can be stolen it is YOU that has to clean up the mess!!! not the IRS or the SSA.

Michael is entirely correct: It's for tax-reporting purposes. Your social security number is also your taxpayer ID number with the IRS; if we pay somebody more than $600 in a year, we have to report it to the IRS ('cuz they're gonna be looking for you to report that income on your tax return). It's pretty unlikely that somebody would make $600 in a year off Reader Gallery or Reader Tips submissions, but let's say you sold us a couple of big articles in the same year. That could put you over the limit.

If you're wary about having your SSN floating around on Gallery or Tips submissions, just put a note in your cover letter for us to call you if/when we're about to send you a check.

I should probably know this for certain, but this is a purely a guess: since we compensate for images used in the Readers Gallery I'd be willing to bet we need the social security numbers for tax reporting purposes.

Again, that's a guess, but I'll check into it and post a follow up if I'm off base here.

I've never submitted anything, so I never noticed this before.

It's not only odd, but it could be bordering on illegal. I'm not up on all the recent changes, but I know that use of an individual's SSN for identification has been severely curtailed. Starting about two months ago, the local military bases no longer request or even want your SSN when you cash a check.

I'm interested in a response from FSM on this as well.