21.11 Reporting Social Security Numbers of Dependents

On your return, you must list the Social Security number (SSN) of each dependent you claim. Include the SSNs of parents or other adults you claim as dependents, as well as those of children.

An SSN may be obtained from the Social Security Administration for U.S. citizens and aliens who have been lawfully admitted for permanent residence or employment. If a dependent is a resident alien or nonresident alien ineligible to obtain an SSN, an individual taxpayer identification number (ITIN) must be obtained from the IRS by filing Form W-7.

Planning Reminder

Filing for SSN or ITIN

If you are planning to claim an exemption for a dependent who at the end of 2012 does not have a required Social Security number, either you or that person should file Form SS-5 with the Social Security Administration as soon as possible so the number may be obtained before the April 15, 2013, filing deadline for your 2012 return. It usually only takes about two weeks to get a SSN, assuming you have provided the Social Security Administration with all required documentation. If you do not have the SSN by the filing due date, you should file Form 4868 for an automatic extension to file (46.3).

If your dependent needs an ITIN and has not yet obtained it from the IRS (by filing Form W-7) before you file your 2012 return, you should attach a completed Form W-7 to your original 2012 return. After the IRS processes your Form W-7, it will assign an ITIN and then process the return.

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If you are in the process of legally adopting a U.S. citizen or resident child who has been placed in your home by an authorized placement agency, and you cannot obtain a Social Security number for the child in time to file your tax return, you may use Form W-7A to apply to the IRS for a temporary adoption taxpayer identification number (ATIN).

If you fail to include a correct SSN or ITIN for a dependent claimed on your return, the IRS may disallow the exemption, although it may contact you and give you an opportunity to provide the number. If an exemption is disallowed, the IRS may assess the extra tax using a summary assessment procedure if you fail to request abatement of the assessment within 60 days of receiving notice; this procedure does not require issuance of a deficiency notice, so there is no appeal to the Tax Court.

To obtain a Social Security number for a dependent child, file Form SS-5 with your local Social Security Administration office. Parents of newborn children may request a number when filling out hospital birth-registration records.

Religious beliefs.

Religious beliefs against applying for and using SSN numbers for their children do not excuse taxpayers from the obligation to provide them. That’s what the Tax Court told the Millers, who had refused to use SSN numbers for claiming their two children as exemptions. They argued that SSNs are universal numerical identifiers equal to the “mark of the Beast,” as described in the New Testament. However, they were willing to use Individual Taxpayer Identification Numbers (ITINs).

The Court held that the IRS properly refused to issue ITINs in this case because ITINs are issued only to taxpayers who are ineligible to receive SSNs, which are issued by the Social Security Administration. The couple had argued that the requirement to use SSNs “substantially burdened” their First Amendment right to free exercise of religion, which entitled them to relief under the Religious Freedom Restoration Act of 1993. The Court held that it did not have to decide the “burden” issue because the IRS was able to show that the SSN requirement furthers a compelling governmental interest and is the least restrictive means of achieving this interest. Here, the Government has a compelling interest in effectively tracking claimed dependency exemptions and administering the tax system in a uniform and mandatory way. Moreover, the requirement to supply SSNs for dependent children has significantly reduced the improper claiming of dependents. Allowing the use of ITINs would be a less effective means of detecting fraud than requiring SSNs. If an individual entitled to an SSN was issued an ITIN, an SSN could later be obtained, allowing duplicate exemption claims to be made.