John W. and Faythe A. Miller - Page 12

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                  do so.7  [H. Conf. Rept. 99-841 (Vol. II), at II-790 (1986),                         
                  1986-3 C.B. (Vol. 4) 1, 790.]                                                        
            We do not find that this IRS practice establishes that                                     
            accommodation is feasible in this case.  Taxpayers who are                                 
            exempted from Social Security employment taxes under section                               
            1402(g) include only those who are members of an established                               
            religious sect opposed to public or private insurance and who                              
            have waived Social Security benefits.8  See Wolfrum v.                                     
            Commissioner, T.C. Memo. 1991-370.  The creation of a general                              
            religious exemption to the dependent TIN requirement would have a                          
            far greater impact on respondent’s administration of the                                   
            dependency exemption and would increase the risk of fraudulent                             
            claims being made.9  We cannot say that the balance struck by                              
            respondent in excusing only those who are statutorily exempted                             
            from participation in the Social Security system is                                        
            constitutionally impermissible.                                                            

                  7Though the legislative history refers to an IRS practice of                         
            issuing ITIN’s to the dependents of taxpayers exempted under sec.                          
            1402(g), respondent acknowledged on brief that the IRS’                                    
            longstanding practice has been to excuse these taxpayers from the                          
            TIN requirement entirely.  See also Chief Counsel Advice                                   
            1999-50-034 (Oct. 21, 1999).                                                               
                  8Petitioners acknowledge that they are not eligible to claim                         
            exemption under sec. 1402(g).                                                              
                  9In 1997 alone there were more than 2.5 million instances                            
            where TIN’s required to claim dependency exemptions and the                                
            Earned Income and Child Care Tax Credits were either missing or                            
            did not match IRS or SSA records for the name used.  See I.R.S.                            
            News Release, IR-98-25 (Mar. 25, 1998).                                                    

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