John W. and Faythe A. Miller - Page 4




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                                             Discussion                                                
            I.    The SSN Requirement                                                                  
                  Under section 151, taxpayers are entitled to claim an                                
            exemption for each dependent child.  However, section 151(e)                               
            provides:  “No exemption shall be allowed under this section with                          
            respect to any individual unless the TIN of such individual is                             
            included on the return claiming the exemption.”1  Thus, without                            
            providing TIN’s, petitioners cannot properly claim any section                             
            151 exemptions for their children.                                                         
                  Section 7701(a)(41) defines the term “TIN” for purposes of                           
            the Internal Revenue Code to mean “the identifying number                                  
            assigned to a person under section 6109.”  Section 6109(d)                                 
            specifies that the SSN issued to an individual is the identifying                          
            number of the individual, except as otherwise specified under                              
            applicable regulations.  The regulations provide that an                                   
            individual required to furnish a TIN must use an SSN unless the                            
            individual is not eligible to obtain an SSN.  See sec. 301.6109-                           
            1(a)(ii)(A) and (B), Proced. & Admin. Regs.  The regulations                               
            further specify that “Any individual who is duly assigned a                                
            Social Security number or who is entitled to a Social Security                             

                  1Sec. 151(e) was added to the Code by the Small Business Job                         
            Protection Act of 1996 (SBJA), Pub. L. 104-188, sec. 1615(a)(1),                           
            110 Stat. 1755, 1853, and is generally effective for returns due                           
            after Sept. 19, 1996.  However, for dependents claimed for the                             
            1996 taxable year, the Act requires TIN’s for any children born                            
            on or before Nov. 30, 1996.  See SBJA sec. 1615(d)(2), 100 Stat.                           
            1853.                                                                                      





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