NoSSN - 26 CFR 301.6109-1

26 CFR 301.6109-1
Identifying Numbers
January 1, 2002

[Code of Federal Regulations]
[Title 26, Volume 17]
[Revised as of April 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR301.6109-1]

[Page 83-89]

TITLE 26--INTERNAL REVENUE

CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY--
(Continued)

PART 301--PROCEDURE AND ADMINISTRATION

Sec. 301.6109-1 Identifying numbers.

(a) In general--(1) Taxpayer identifying numbers--(i) Principal
types. There are several types of taxpayer identifying numbers that
include the following: social security numbers, Internal Revenue Service
(IRS) individual taxpayer identification numbers, IRS adoption taxpayer
identification numbers, and employer identification numbers. Social
security numbers take the form 000-00-0000. IRS individual taxpayer
identification numbers and IRS adoption taxpayer identification numbers
also take the form 000-00-0000 but include a specific number or numbers
designated by the IRS. Employer identification numbers take the form 00-
0000000.
(ii) Uses. Social security numbers, IRS individual taxpayer
identification numbers, and IRS adoption taxpayer identification numbers
are used to identify individual persons. Employer identification numbers
are used to identify employers. For the definition of social security
number and employer identification number, see Secs. 301.7701-11 and
301.7701-12, respectively. For the definition of IRS individual taxpayer
identification number, see paragraph (d)(3) of this section. For the
definition of IRS adoption taxpayer identification number, see
Sec. 301.6109-3(a). Except as otherwise provided in applicable
regulations under this chapter or on a return, statement, or other
document, and related instructions, taxpayer identifying numbers must be
used as follows:
(A) Except as otherwise provided in paragraph (a)(1)(ii)(B) and (D)
of this section, and Sec. 301.6109-3, an individual required to furnish
a taxpayer identifying number must use a social security number.
(B) Except as otherwise provided in paragraph (a)(1)(ii)(D) of this
section and Sec. 301.6109-3, an individual required to furnish a
taxpayer identifying number but who is not eligible to obtain a social
security number must use an IRS individual taxpayer identification
number.
(C) Any person other than an individual (such as corporations,
partnerships, nonprofit associations, trusts,

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estates, and similar nonindividual persons) that is required to furnish
a taxpayer identifying number must use an employer identification
number.
(D) An individual, whether U.S. or foreign, who is an employer or
who is engaged in a trade or business as a sole proprietor should use an
employer identification number as required by returns, statements, or
other documents and their related instructions.
(2) A trust all of which is treated as owned by the grantor or
another person pursuant to sections 671 through 678--(i) Obtaining a
taxpayer identification number. If a trust does not have a taxpayer
identification number and the trustee furnishes the name and taxpayer
identification number of the grantor or other person treated as the
owner of the trust and the address of the trust to all payors pursuant
to Sec. 1.671-4(b)(2)(i)(A) of this chapter, the trustee need not obtain
a taxpayer identification number for the trust until either the first
taxable year of the trust in which all of the trust is no longer owned
by the grantor or another person, or until the first taxable year of the
trust for which the trustee no longer reports pursuant to Sec. 1.671-
4(b)(2)(i)(A) of this chapter. If the trustee has not already obtained a
taxpayer identification number for the trust, the trustee must obtain a
taxpayer identification number for the trust as provided in paragraph
(d)(2) of this section in order to report pursuant to Sec. 1.671-4(a),
(b)(2)(i)(B), or (b)(3)(i) of this chapter.
(ii) Obligations of persons who make payments to certain trusts. Any
payor that is required to file an information return with respect to
payments of income or proceeds to a trust must show the name and
taxpayer identification number that the trustee has furnished to the
payor on the return. Regardless of whether the trustee furnishes to the
payor the name and taxpayer identification number of the grantor or
other person treated as an owner of the trust, or the name and taxpayer
identification number of the trust, the payor must furnish a statement
to recipients to the trustee of the trust, rather than to the grantor or
other person treated as the owner of the trust. Under these
circumstances, the payor satisfies the obligation to show the name and
taxpayer identification number of the payee on the information return
and to furnish a statement to recipients to the person whose taxpayer
identification number is required to be shown on the form.
(iii) Persons treated as payors. For purposes of this paragraph
(a)(2), the term payor means a person described in Sec. 1.671-4(b)(4) of
this chapter.
(b) Requirement to furnish one's own number--(1) U.S. persons. Every
U.S. person who makes under this title a return, statement, or other
document must furnish its own taxpayer identifying number as required by
the forms and the accompanying instructions. A U.S. person whose number
must be included on a document filed by another person must give the
taxpayer identifying number so required to the other person on request.
For penalties for failure to supply taxpayer identifying numbers, see
sections 6721 through 6724. For provisions dealing specifically with the
duty of employees with respect to their social security numbers, see
Sec. 31.6011(b)-2 (a) and (b) of this chapter (Employment Tax
Regulations). For provisions dealing specifically with the duty of
employers with respect to employer identification numbers, see
Sec. 31.6011(b)-1 of this chapter (Employment Tax Regulations).
(2) Foreign persons. The provisions of paragraph (b)(1) of this
section regarding the furnishing of one's own number shall apply to the
following foreign persons--
(i) A foreign person that has income effectively connected with the
conduct of a U.S. trade or business at any time during the taxable year;
(ii) A foreign person that has a U.S. office or place of business or
a U.S. fiscal or paying agent at any time during the taxable year;
(iii) A nonresident alien treated as a resident under section
6013(g) or (h);
(iv) A foreign person that makes a return of tax (including income,
estate, and gift tax returns), an amended return, or a refund claim
under this title but excluding information returns, statements, or
documents;
(v) A foreign person that makes an election under Sec. 301.7701-
3(c); and

[[Page 85]]

(vi) A foreign person that furnishes a withholding certificate
described in Sec. 1.1441-1(e)(2) or (3) of this chapter or Sec. 1.1441-
5(c)(2)(iv) or (3)(iii) of this chapter to the extent required under
Sec. 1.1441-1(e)(4)(vii) of this chapter.
(c) Requirement to furnish another's number. Every person required
under this title to make a return, statement, or other document must
furnish such taxpayer identifying numbers of other U.S. persons and
foreign persons that are described in paragraph (b)(2)(i), (ii), (iii),
or (vi) of this section as required by the forms and the accompanying
instructions. The taxpayer identifying number of any person furnishing a
withholding certificate referred to in paragraph (b)(2)(vi) of this
section shall also be furnished if it is actually known to the person
making a return, statement, or other document described in this
paragraph (c). If the person making the return, statement, or other
document does not know the taxpayer identifying number of the other
person, and such other person is one that is described in paragraph
(b)(2)(i), (ii), (iii), or (vi) of this section, such person must
request the other person's number. The request should state that the
identifying number is required to be furnished under authority of law.
When the person making the return, statement, or other document does not
know the number of the other person, and has complied with the request
provision of this paragraph (c), such person must sign an affidavit on
the transmittal document forwarding such returns, statements, or other
documents to the Internal Revenue Service, so stating. A person required
to file a taxpayer identifying number shall correct any errors in such
filing when such person's attention has been drawn to them.
(d) Obtaining a taxpayer identifying number--(1) Social security
number. Any individual required to furnish a social security number
pursuant to paragraph (b) of this section shall apply for one, if he has
not done so previously, on Form SS-5, which may be obtained from any
Social Security Administration or Internal Revenue Service office. He
shall make such application far enough in advance of the first required
use of such number to permit issuance of the number in time for
compliance with such requirement. The form, together with any
supplementary statement, shall be prepared and filed in accordance with
the form, instructions, and regulations applicable thereto, and shall
set forth fully and clearly the data therein called for. 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.
(2) Employer identification number--(i) In general. Any person
required to furnish an employer identification number must apply for
one, if not done so previously, on Form SS-4. A Form SS-4 may be
obtained from any office of the Internal Revenue Service, U.S. consular
office abroad, or from an acceptance agent described in paragraph
(d)(3)(iv) of this section. The person must make such application far
enough in advance of the first required use of the employer
identification number to permit issuance of the number in time for
compliance with such requirement. The form, together with any
supplementary statement, must be prepared and filed in accordance with
the form, accompanying instructions, and relevant regulations, and must
set forth fully and clearly the requested data.
(ii) [Reserved]
(iii) Special rule for Section 708(b)(1)(B) terminations. A new
partnership that is formed as a result of the termination of a
partnership under section 708(b)(1)(B) will retain the employer
identification number of the terminated partnership. This paragraph
(d)(2)(iii) applies to terminations of partnerships under section
708(b)(1)(B) occurring on or after May 9, 1997; however, this paragraph
(d)(2)(iii) may be applied to terminations occurring on or after May 9,
1996, provided that the partnership and its partners apply this
paragraph (d)(2)(iii) to the termination in a consistent manner.
(3) IRS individual taxpayer identification number--(i) Definition.
The term IRS individual taxpayer identification number means a taxpayer
identifying number issued to an alien individual by

[[Page 86]]

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.
(ii) General rule for obtaining number. Any individual who is not
eligible to obtain a social security number and is required to furnish a
taxpayer identifying number must apply for an IRS individual taxpayer
identification number on Form W-7, Application for IRS Individual
Taxpayer Identification Number, or such other form as may be prescribed
by the Internal Revenue Service. Form W-7 may be obtained from any
office of the Internal Revenue Service, U.S. consular office abroad, or
any acceptance agent described in paragraph (d)(3)(iv) of this section.
The individual shall furnish the information required by the form and
accompanying instructions, including the individual's name, address,
foreign tax identification number (if any), and specific reason for
obtaining an IRS individual taxpayer identification number. The
individual must make such application far enough in advance of the first
required use of the IRS individual taxpayer identification number to
permit issuance of the number in time for compliance with such
requirement. The application form, together with any supplementary
statement and documentation, must be prepared and filed in accordance
with the form, accompanying instructions, and relevant regulations, and
must set forth fully and clearly the requested data.
(iii) General rule for assigning number. Under procedures issued by
the Internal Revenue Service, an IRS individual taxpayer identification
number will be assigned to an individual upon the basis of information
reported on Form W-7 (or such other form as may be prescribed by the
Internal Revenue Service) and any such accompanying documentation that
may be required by the Internal Revenue Service. An applicant for an IRS
individual taxpayer identification number must submit such documentary
evidence as the Internal Revenue Service may prescribe in order to
establish alien status and identity. Examples of acceptable documentary
evidence for this purpose may include items such as an original (or a
certified copy of the original) passport, driver's license, birth
certificate, identity card, or immigration documentation.
(iv) Acceptance agents--(A) Agreements with acceptance agents. A
person described in paragraph (d)(3)(iv)(B) of this section will be
accepted by the Internal Revenue Service to act as an acceptance agent
for purposes of the regulations under this section upon entering into an
agreement with the Internal Revenue Service, under which the acceptance
agent will be authorized to act on behalf of taxpayers seeking to obtain
a taxpayer identifying number from the Internal Revenue Service. The
agreement must contain such terms and conditions as are necessary to
insure proper administration of the process by which the Internal
Revenue Service issues taxpayer identifying numbers to foreign persons,
including proof of their identity and foreign status. In particular, the
agreement may contain--
(1) Procedures for providing Form SS-4 and Form W-7, or such other
necessary form to applicants for obtaining a taxpayer identifying
number;
(2) Procedures for providing assistance to applicants in completing
the application form or completing it for them;
(3) Procedures for collecting, reviewing, and maintaining, in the
normal course of business, a record of the required documentation for
assignment of a taxpayer identifying number;
(4) Procedures for submitting the application form and required
documentation to the Internal Revenue Service, or if permitted under the
agreement, submitting the application form together with a certification
that the acceptance agent has reviewed the required documentation and
that it has no actual knowledge or reason to know that the documentation
is not complete or accurate;
(5) Procedures for assisting taxpayers with notification procedures
described in paragraph (g)(2) of this section in the event of change of
foreign status;

[[Page 87]]

(6) Procedures for making all documentation or other records
furnished by persons applying for a taxpayer identifying number promptly
available for review by the Internal Revenue Service, upon request; and
(7) Provisions that the agreement may be terminated in the event of
a material failure to comply with the agreement, including failure to
exercise due diligence under the agreement.
(B) Persons who may be acceptance agents. An acceptance agent may
include any financial institution as defined in section 265(b)(5) or
Sec. 1.165-12(c)(1)(v) of this chapter, any college or university that
is an educational organization as defined in Sec. 1.501(c)(3)-1(d)(3)(i)
of this chapter, any federal agency as defined in section 6402(f) or any
other person or categories of persons that may be authorized by
regulations or Internal Revenue Service procedures. A person described
in this paragraph (d)(3)(iv)(B) that seeks to qualify as an acceptance
agent must have an employer identification number for use in any
communication with the Internal Revenue Service. In addition, it must
establish to the satisfaction of the Internal Revenue Service that it
has adequate resources and procedures in place to comply with the terms
of the agreement described in paragraph (d)(3)(iv)(A) of this section.
(4) Coordination of taxpayer identifying numbers--(i) Social
security number. Any individual who is duly assigned a social security
number or who is entitled to a social security number will not be issued
an IRS individual taxpayer identification number. The individual can use
the social security number for all tax purposes under this title, even
though the individual is, or later becomes, a nonresident alien
individual. Further, any individual who has an application pending with
the Social Security Administration will be issued an IRS individual
taxpayer identification number only after the Social Security
Administration has notified the individual that a social security number
cannot be issued. Any alien individual duly issued an IRS individual
taxpayer identification number who later becomes a U.S. citizen, or an
alien lawfully permitted to enter the United States either for permanent
residence or under authority of law permitting U.S. employment, will be
required to obtain a social security number. Any individual who has an
IRS individual taxpayer identification number and a social security
number, due to the circumstances described in the preceding sentence,
must notify the Internal Revenue Service of the acquisition of the
social security number and must use the newly-issued social security
number as the taxpayer identifying number on all future returns,
statements, or other documents filed under this title.
(ii) Employer identification number. Any individual with both a
social security number (or an IRS individual taxpayer identification
number) and an employer identification number may use the social
security number (or the IRS individual taxpayer identification number)
for individual taxes, and the employer identification number for
business taxes as required by returns, statements, and other documents
and their related instructions. Any alien individual duly assigned an
IRS individual taxpayer identification number who also is required to
obtain an employer identification number must furnish the previously-
assigned IRS individual taxpayer identification number to the Internal
Revenue Service on Form SS-4 at the time of application for the employer
identification number. Similarly, where an alien individual has an
employer identification number and is required to obtain an IRS
individual taxpayer identification number, the individual must furnish
the previously-assigned employer identification number to the Internal
Revenue Service on Form W-7, or such other form as may be prescribed by
the Internal Revenue Service, at the time of application for the IRS
individual taxpayer identification number.
(e) Banks, and brokers and dealers in securities. For additional
requirements relating to deposits, share accounts, and brokerage
accounts, see 31 CFR 103.34 and 103.35.
(f) Penalty. For penalties for failure to supply taxpayer
identifying numbers, see sections 6721 through 6724.
(g) Special rules for taxpayer identifying numbers issued to foreign
persons--

[[Page 88]]

(1) General rule--(i) Social security number. A social security number
is generally identified in the records and database of the Internal
Revenue Service as a number belonging to a U.S. citizen or resident
alien individual. A person may establish a different status for the
number by providing proof of foreign status with the Internal Revenue
Service under such procedures as the Internal Revenue Service shall
prescribe, including the use of a form as the Internal Revenue Service
may specify. Upon accepting an individual as a nonresident alien
individual, the Internal Revenue Service will assign this status to the
individual's social security number.
(ii) Employer identification number. An employer identification
number is generally identified in the records and database of the
Internal Revenue Service as a number belonging to a U.S. person.
However, the Internal Revenue Service may establish a separate class of
employer identification numbers solely dedicated to foreign persons
which will be identified as such in the records and database of the
Internal Revenue Service. A person may establish a different status for
the number either at the time of application or subsequently by
providing proof of U.S. or foreign status with the Internal Revenue
Service under such procedures as the Internal Revenue Service shall
prescribe, including the use of a form as the Internal Revenue Service
may specify. The Internal Revenue Service may require a person to apply
for the type of employer identification number that reflects the status
of that person as a U.S. or foreign person.
(iii) IRS individual taxpayer identification number. An IRS
individual taxpayer identification number is generally identified in the
records and database of the Internal Revenue Service as a number
belonging to a nonresident alien individual. If the Internal Revenue
Service determines at the time of application or subsequently, that an
individual is not a nonresident alien individual, the Internal Revenue
Service may require that the individual apply for a social security
number. If a social security number is not available, the Internal
Revenue Service may accept that the individual use an IRS individual
taxpayer identification number, which the Internal Revenue Service will
identify as a number belonging to a U.S. resident alien.
(2) Change of foreign status. Once a taxpayer identifying number is
identified in the records and database of the Internal Revenue Service
as a number belonging to a U.S. or foreign person, the status of the
number is permanent until the circumstances of the taxpayer change. A
taxpayer whose status changes (for example, a nonresident alien
individual with a social security number becomes a U.S. resident alien)
must notify the Internal Revenue Service of the change of status under
such procedures as the Internal Revenue Service shall prescribe,
including the use of a form as the Internal Revenue Service may specify.
(3) Waiver of prohibition to disclose taxpayer information when
acceptance agent acts. As part of its request for an IRS individual
taxpayer identification number or submission of proof of foreign status
with respect to any taxpayer identifying number, where the foreign
person acts through an acceptance agent, the foreign person will agree
to waive the limitations in section 6103 regarding the disclosure of
certain taxpayer information. However, the waiver will apply only for
purposes of permitting the Internal Revenue Service and the acceptance
agent to communicate with each other regarding matters related to the
assignment of a taxpayer identifying number and change of foreign
status.
(h) Special rules for certain entities under Sec. 301.7701-3--(1)
General rule. Any entity that has an employer identification number
(EIN) will retain that EIN if its federal tax classification changes
under Sec. 301.7701-3.
(2) Special rules for entities that are disregarded as entities
separate from their owners--(i) When an entity becomes disregarded as an
entity separate from its owner. Except as otherwise provided in
regulations or other guidance, a single owner entity that is disregarded
as an entity separate from its owner under Sec. 301.7701-3, must use its
owner's taxpayer identifying number (TIN) for federal tax purposes.
(ii) When an entity that was disregarded as an entity separate from
its

[[Page 89]]

owner becomes recognized as a separate entity. If a single owner
entity's classification changes so that it is recognized as a separate
entity for federal tax purposes, and that entity had an EIN, then the
entity must use that EIN and not the TIN of the single owner. If the
entity did not already have its own EIN, then the entity must acquire an
EIN and not use the TIN of the single owner.
(3) Effective date. The rules of this paragraph (h) are applicable
as of January 1, 1997.
(i) Special rule for qualified subchapter S subsidiaries (QSubs)--
(1) General rule. Any entity that has an employer identification number
(EIN) will retain that EIN if a QSub election is made for the entity
under Sec. 1.1361-3 or if a QSub election that was in effect for the
entity terminates under Sec. 1.1361-5.
(2) EIN while QSub election in effect. Except as otherwise provided
in regulations or other published guidance, a QSub must use the parent S
corporation's EIN for Federal tax purposes.
(3) EIN when QSub election terminates. If an entity's QSub election
terminates, it may not use the EIN of the parent S corporation after the
termination. If the entity had an EIN prior to becoming a QSub or
obtained an EIN while it was a QSub in accordance with regulations or
other published guidance, the entity must use that EIN. If the entity
had no EIN, it must obtain an EIN upon termination of the QSub election.
(4) Effective date. The rules of this paragraph (i) apply on January
20, 2000.
(j) Effective date--(1) General rule. Except as otherwise provided
in this paragraph (j), the provisions of this section are generally
effective for information that must be furnished after April 15, 1974.
However, the provisions relating to IRS individual taxpayer
identification numbers apply on and after May 29, 1996. An application
for an IRS individual taxpayer identification number (Form W-7) may be
filed at any time on or after July 1, 1996.
(2) Special rules--(i) Employer identification number of an estate.
The requirement under paragraph (a)(1)(ii)(C) of this section that an
estate obtain an employer identification number applies on and after
January 1, 1984.
(ii) Taxpayer identifying numbers of certain foreign persons. The
requirement under paragraph (b)(2)(iv) of this section that certain
foreign persons furnish a TIN on a return of tax is effective for tax
returns filed after December 31, 1996.
(iii) Paragraphs (a)(1)(i), (a)(1)(ii) introductory text,
(a)(1)(ii)(A), and (a)(1)(ii)(B) of this section apply to income tax
returns due (without regard to extensions) on or after April 15, 1998.

[T.D. 7306, 39 FR 9946, Mar. 15, 1974 as amended by T.D. 7670, 45 FR
6932, Jan. 31, 1980; T.D. 7796, 46 FR 57482, Nov. 24, 1981; T.D. 8633,
60 FR 66090, Dec. 21, 1995; T.D. 8637, 60 FR 66134, Dec. 21, 1995; T.D.
8671, 61 FR 26790, May 29, 1996; 61 FR 33657, June 28, 1996; T.D. 8697,
61 FR 66588, Dec. 18, 1996; T.D. 8717, 62 FR 25502, May 9, 1997; T.D.
8734, 62 FR 53494, Oct. 14, 1997; T.D. 8739, 62 FR 62520, Nov. 24, 1997;
T.D. 8739, 63 FR 13124, Mar. 18, 1998; T.D. 8839, 64 FR 51242, Sept. 22,
1999; T.D. 8844, 64 FR 66583, Nov. 29, 1999; T.D. 8869, 65 FR 3856, Jan.
25, 2000]

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