The Purser's Office

There is no requirement for employers to validate Social Security Account Numbers  (SSAN), Addresses, nor withhold taxes. Annually, the IRS gets an info tape from employers; they may share this with the State Revenue departments, and then all hope the recipients file.

To track a non-custodial parent, a lien, etc. you go to the State Dept of Revenue. Without valid addresses or SSAN, little happens; the 1099-Misc recipient remains invisible.

However, if the IRS required employers to withhold self-employment tax (15.3%) & Federal W/H (at least 10%), & State tax (often near 7%) when the work is performed, empty coffers would fill. As the payments relate to SSAN, payees will need valid SSAN & addresses if they want overbillings reimbursed.  And with that desire comes visibility.

Beneficiaries? Aid to Dependent Children costs drop. Garnishments & liens are collected. A whole class of people learns responsibility. And unemployment figures go down.

Briefly, using an algorithm, compare the Info 1099-Misc gross by SSAN to poverty level statistics. See how many are earning a living wage. Subtract this total from the Bureau of Labor Statistic’s total unemployed to see what the real unemployment numbers are.

The Following are not employed but earn a 1099-Misc.:
A cosmetics sales person driving a pink luxury auto
A professional board sitter on a Board of Directors
An actor employed in summer stock

What Kind of Money is On the Table?
Ask IRS to pick a year’s Info 1099-Misc reported , multiply this by (15.3%+10%+often near 7%). Total the 1099-Misc Back Up Withholdings from that year’s income tax filings. Compare the difference.  That number gives you an approximation of cash that could keep coffers filled as the money is earned.

This is not a new tax, the money is due. It’s just money left on the table!