i9Check
provides web-based and stand-alone I-9
form completion software. The software
guides users to proper completion of the
I9 form. The end result is a compliant
form which alleviates companies from the
administrative hassle of correcting I-9
forms. With the advent of electronic
signatures and storage, I9 form completion
is now made even easier. i9Check software
incorporates these new developments; with
its streamlined interface and design by
legal experts, i9Check will help your
company easily manage its I-9 forms.
As
the #1 leader in I-9 form completion
software, i9Check is pleased to provide
the following employment
eligibility-related news:
Work-Eligible
Foreign New Hires Lacking SSNs
Sometimes
aliens experience significant delays in
obtaining social security numbers. The
consequences of these delays are discussed
below.
There
is no federal law administered by any
federal agency which prohibits the hiring
of a person based solely on the fact that
the person does not have a Social Security
Number (SSN). Similarly, there is no
federal law which prohibits the making of
a payment to a person based solely on the
fact that the person does not have an SSN.
However,
there are federal laws and regulations
which require the reporting of a payee's
TIN (Taxpayer Identification Number--SSN
or ITIN) on federal information returns
and payee statements such as forms W-2,
1099, 1042-S, etc. In addition, federal
regulations require (with a few
exceptions) that all tax treaty claims
made on Forms 8233, W-8BEN, or W-9 be
accompanied by the beneficial owner's TIN.
The
IRS is quite aware of the Social Security
Administration's new procedures effective
since
9/30/2002
about not issuing an SSN to any alien for
whom it cannot confirm his identity and
immigration status from the USCIS. In
addition, the IRS is quite aware of the
delays in securing an SSN which these new
procedures will cause many aliens.
Furthermore, in the situation in which an
alien is work-authorized under the
immigration law and is eligible to request
an SSN, but who is experiencing delays in
securing an SSN caused by the SSA's new
procedures, the IRS will not issue an ITIN
(Individual Taxpayer Identification
Number) to such an alien.
With
respect to IRS penalties related to the
payor's failure to furnish a payee TIN on
an information return and on a payee
statement, the fact that the payor does
not have a payee TIN to report because the
SSA is delaying an issuance of an SSN to a
work-authorized alien solely because of
its new procedures, will cause the IRS to
be quite favorable toward considering this
situation one in which "reasonable
cause" exists for not asserting such
penalties. The payor should keep
documentation to show that his failure to
supply a payee TIN is caused solely by the
SSA's new procedures for issuing SSN's to
aliens.
For more information, please contact us
