W-4 Instructions Say...

When a person is hired for a job, the company they work for will give them a W4 form to fill out. Most people will fill it out assuming that it is required by law. The law that pertains to the W4 form is listed in the Privacy Act and Paperwork Reduction Act Notice section of the instructions which state in part: 

We ask for the information on this form to carry out the Internal Revenue laws of the United States. Internal Revenue Code sections 3402(f)(2) and 6109 and their regulations require you to provide this information; your employer uses it to determine your federal income tax withholding.

• Just because you are reading this notice does NOT mean that you are the "you" required to provide the information.
• The cited sections of law will state who they apply do.
• If the cited sections of law do not state that they apply to you, then they do not apply to you.

The Form W-4 applies to two different classes of person as you will see when you examine the cited laws.

This portion of the 6109 statute addresses a company's requirement to collect an identifying number (SSN) from a new hire when they hire a new person.

TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 61 - INFORMATION AND RETURNS
Subchapter B - Miscellaneous Provisions

-HEAD-
Sec. 6109. Identifying numbers

-STATUTE-
(a) Supplying of identifying numbers
When required by regulations prescribed by the Secretary:
(3) Furnishing number of another person
Any person required under the authority of this title to make a return, statement, or other document with respect to another person shall request from such other person, and shall include in any such return, statement, or other document, such identifying number as may be prescribed for securing proper identification of such other person.

For purposes of paragraphs (1), (2), and (3), the identifying number of an individual (or his estate) shall be such individual's social security account number.

In other words, IF your company is the "person required" to make a return, statement, or other document with respect to a new hire ("another person"), then your company is required to ask for the number and put it on the return, statement, or other document.

• This statute does NOT state who is the person required, therefore;
• This statute does NOT impose the requirement to collect a number.
• The authority of this statute is clearly delegated to the "implementing regulations".

The requirement to collect an identifying number from a new hire only exists when:

• There is an actual regulatory requirement to collect this number.

26 CFR 301.6109-1 Identifying numbers.

(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), (vi), (vii), or (viii) 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) or (viii) 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). [...]

As titled, this regulation subsection is about the requirement of a company to furnish identifying numbers of new hires to the IRS. 

"Every person required ... must furnish such taxpayer identifying numbers of other U.S. persons and foreign persons that are described in [the cited] paragraph..." Every company required ... must furnish taxpayer identifying numbers...

• This sentence only says what must be done IF required.
• This statute does NOT state who is the (company) person required to do the action.
• This sentence does NOT impose the requirement on persons not so required.

Continuing with the regulation:

26 CFR 301.6109-1 Identifying numbers.

(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), (vi), (vii), or (viii) 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. 

In other words: If the company does not know the taxpayer identifying number of the new hire, and the new hire is described in the cited paragraph, the company must request the new hire's number "under authority of law".

Point of logic:

• If a number is NOT "required to be furnished under authority of law" then the requester does NOT have "authority of law" to request such number.
• The requester only has "authority of law" to request a person's number if that person is identified in the cited paragraph.
• If a number is NOT "required to be furnished under authority of law" then the requester does NOT have a requirement to make such a request.

Who is required to furnish an identifying number under authority of law?

26 CFR 301.6109-1 Identifying numbers.

(b) Requirement to furnish one's own number—
(2) 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);
(vi) A foreign person that furnishes a withholding certificate described in § 1.1441-1(e)(2) or (3) of this chapter or § 1.1441-5(c)(2)(iv) or (3)(iii) of this chapter to the extent required under § 1.1441-1(e)(4)(vii) of this chapter;
(vii) A foreign person whose taxpayer identifying number is required to be furnished on any return, statement, or other document as required by the income tax regulations under section 897 or 1445. This paragraph (b)(2)(vii) applies as of November 3, 2003; and
(viii) A foreign person that furnishes a withholding certificate described in § 1.1446-1(c)(2) or (3) of this chapter or whose taxpayer identification number is required to be furnished on any return, statement, or other document as required by the income tax regulations under section 1446. 

• Only foreign persons and nonresident aliens are required to furnish an identifying number "under authority of law".
• Therefore persons (or companies) are required to file a return, statement, or other document with respect to you only when you are a nonresident alien or foreign person identified in the cited paragraph.

This portion of the 6109 statute addresses a person's requirement to furnish an identifying number (social security number) as a new hire.

Sec. 6109. Identifying numbers

-STATUTE-
(a) Supplying of identifying numbers
When required by regulations prescribed by the Secretary:
(2) Furnishing number to other persons
Any person with respect to whom a return, statement, or other document is required under the authority of this title to be made by another person or whose identifying number is required to be shown on a return of another person shall furnish to such other person such identifying number as may be prescribed for securing his proper identification.

In other words, IF you are the "person" required to furnish an identifying number to be shown on your company's return, statement, or other document, then you must furnish it "as prescribed". You have already read the requirement "as prescribed" by the Secretary's regulations. They say:

• Only nonresident aliens and foreign persons as described in paragraph (b)(2)(i), (ii), (iii), (vi), (vii), or (viii) of the regulation are prescribed (required) to furnish a number "under authority of law."
• Therefore you are required to furnish a number only when you are a nonresident alien or foreign person as described in the cited paragraph.

If you read the entirety of the regulation, you will find this:

26 CFR 301.6109-1 Identifying numbers.
(b) Requirement to furnish one's own number—(1) U.S. persons. [...] 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.

• Only nonresident aliens and foreign persons as described in paragraph (b)(2)(i), (ii), (iii), (vi), (vii), or (viii) of the regulation are required to furnish a number "under authority of law."
• The requirement to furnish a number "under authority of law" is missing in this section.

And as a side note... Or should I say a forward note:

• Per the W-9 instructions examined on the next page, a resident alien can be a U.S. person. 
  • An alien is a foreign person, 
  • therefore a resident alien is a resident foreign person, 
  • therefore a U.S. person can be a resident foreign person,
  • therefore a U.S. person can be a foreign person.
• U.S. persons who are foreign persons are required to furnish a number "under authority of law."

I am not a nonresident alien or a foreign person, therefore I am not required by section 6109 or its regulations to fill out a Form W-4; Unless section 3402(f)(2) requires me to do so, in which case this portion of the law would require me to supply a number.

At first view this other statute, 3402(f)(2), appears to require a W-4 form to be submitted by everybody.

TITLE 26 - INTERNAL REVENUE CODE
Subtitle C - Employment Taxes
CHAPTER 24 - COLLECTION OF INCOME TAX AT SOURCE ON WAGES

-HEAD-
Sec. 3402. Income tax collected at source

-STATUTE-
(f) Withholding exemptions
(2) Exemption certificates
(A) On commencement of employment
On or before the date of the commencement of employment with an employer, the employee shall furnish the employer with a signed withholding exemption certificate relating to the number of withholding exemptions which he claims, which shall in no event exceed the number to which he is entitled.

However, it doesn't say what you think it says because you have not read the definitions that apply. The most important definition is presented next.

TITLE 26 - INTERNAL REVENUE CODE
Subtitle C - Employment Taxes
CHAPTER 24 - COLLECTION OF INCOME TAX AT SOURCE ON WAGES

-HEAD-
Sec. 3401. Definitions

-STATUTE-
(c) Employee
For purposes of this chapter, the term "employee" includes an officer, employee, or elected official of the United States, a State, or any political subdivision thereof, or the District of Columbia, or any agency or instrumentality of any one or more of the foregoing. The term "employee" also includes an officer of a corporation.

• By this statutory definition, a new hire is NOT an "employee" if the new hire is not being hired by any of the listed entities.
• The requirement to supply a withholding certificate only applies to "employees" - Those being hired by the listed entities.

At this point, those who make their livelihoods perpetrating and perpetuating this theft from the American people will be howling all sorts of reasons in an attempt to make you believe that the plain language does not say what it means and mean what it says.

This next definition, which also applies to section 3402(f)(2), is dependent upon the previously examined definition of an "employee".

TITLE 26 - INTERNAL REVENUE CODE
Subtitle C - Employment Taxes
CHAPTER 24 - COLLECTION OF INCOME TAX AT SOURCE ON WAGES

-HEAD-
Sec. 3401. Definitions

-STATUTE-
(d) Employer
For purposes of this chapter, the term "employer" means the person for whom an individual performs or performed any service, of whatever nature, as the employee of such person, except that - [exceptions to the term employer omitted]

• If an "employee" is ONLY somebody working for the federal entities listed in the statutory definition of "employee", then only the federal entities listed in subsection (c) can be the "employers" referred to in this subsection.

TITLE 26 - INTERNAL REVENUE CODE
Subtitle C - Employment Taxes
CHAPTER 24 - COLLECTION OF INCOME TAX AT SOURCE ON WAGES

-HEAD-
Sec. 3401. Definitions

-STATUTE-
(a) Wages
For purposes of this chapter, the term "wages" means all remuneration (other than fees paid to a public official) for services performed by an employee for his employer ...

Taxes are withheld on wages. Wages are what an employee is paid. An employee is somebody who works for the federal government.

The regulations of statute section 3402(f)(2) are all about the rules regarding the proper filling out of the form W4. These rules only apply to "employers" and their "employees" as defined by the previously examined statutory definition as implemented in the following regulatory definition.

The regulations of statute section 3401 are limited by the same statutory definitions of "employers" and "employees". 

26 CFR § 31.3401(c)-1 Employee.
(a) The term employee includes every individual performing services if the relationship between him and the person for whom he performs such services is the legal relationship of employer and employee. The term includes officers and employees, whether elected or appointed, of the United States, a State, Territory, Puerto Rico, or any political subdivision thereof, or the District of Columbia, or any agency or instrumentality of any one or more of the foregoing.

§ 31.3401(d)-1 Employer.
(a) The term employer means any person for whom an individual performs or performed any service, of whatever nature, as the employee of such person.

Section 3402(f)(2) and its regulations do not require me to submit a social security number on a form W4, the Employee's Withholding Allowance Certificate form, nor do they require me to submit the form in the first place.

The IRS can only collect tax on income it knows about. If the law does not require information about certain compensation to be reported to the IRS, then it must follow that the IRS is not required to collect tax on that compensation. 

The truth is only found by reading the law cited in the W-4 instructions, therefore the W-4 instructions are deceptive by omission.

"It's hard to get a man to understand something if his paycheck depends upon him not understanding it" - Upton Sinclair

I will briefly demonstrate the lack of logic used by the howling experts in their attempt to confuse you about the definition that proves the average person living and working in any of the 50 States united is not required to fill out a W4 form.

Sec. 3401. Definitions
For purposes of this chapter, the term "employee" includes an officer, employee, or elected official of the United States, a State, or any political subdivision thereof, or the District of Columbia, or any agency or instrumentality of any one or more of the foregoing. The term "employee" also includes an officer of a corporation.

The howling experts will argue that you start with the dictionary definition and then add the listed entities to that definition. They are wrong as a matter of logic.

My dictionary defines an "employee" as "A person who works for another in return for financial or other compensation."

• Officers, employees, and elected officials of the entities listed work for those entities in return for financial or other compensation.
• Therefore such officers, employees, and elected officials are already covered by the dictionary definition.
• Therefore this interpretation of a statutory definition adding to the dictionary definition would cause this statute to be null, void, and without effect.
• The Latin root of the word "includes" means "to enclose". To enclose is to embrace that which is enclosed. Only that which is inside the enclosure is embraced and counts, that which is outside does not. The general usage of includes is a limiting function. To "also include" adds the item to the inside of the enclosure to be embraced and counted.

"The term "employee" also includes an officer of a corporation."

My American Heritage Electronic Dictionary states:

cor·po·ra·tion 1. A body that is granted a charter legally recognizing it as a separate legal entity having its own rights, privileges, and liabilities distinct from those of its members. 2. Such a body created for purposes of government. Also called body corporate. 3. A group of people combined into or acting as one body.