In my book Identity Crisis: How Identification is Overused and Misunderstood, I argue that identification is required of us too often by both corporations and government as we go about our business. I also do my best to articulate the reasons why this is bad, and how we can escape it.
With my senses tuned to the overuse of identification, I’m keenly aware of the osmotic process by which institutions soak up information about us, pass it around, and use it in ways we may not prefer.
Here’s an example from real life: I have recently spoken at several conferences dealing with identification, identity, financial risk management, and the like. When the time came to get reimbursement for my travel, one of the conference organizers asked me to give my Social Security Number if I was going to rely on faxed receipts for reimbursement.
The e‑mail thread below shows how complex IRS regulations require financial administrators in the corporate world to over-comply, collecting (and possibly filing with the government) information that neither entity needs.
This is bureaucracy in action (both public and private), and it’s the constant drip, drip, drip of privacy going away.
[Names have been changed to protect the guilty.]
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—–Original Message—–
From: katie@conference.org
Sent: Fri 9/29/2006 10:19 AM
To: Jim Harper
Subject: W‑9 Forms Needed
Hello Jim,
Thank you so much for sending over your receipts.
Since you did not send me actual receipts, I need you to fill out this W‑9 form and fax it back ASAP.
Thanks again,
-Katie
Katie Folsom
Conference Specialist
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Are you sure? This is reimbursement for travel, not income. And even if it were income, I believe the amount in question here would not even require a W‑9. (Also, I’m traveling through Sunday without access to a printer or fax. ;-)
Having suffered through my talk, you probably understand that I don’t needlessly share information with the government or with organizations who are going to needlessly share with the government.
If you could politely ask your accounting folks to show where the law or IRS instructions require them to have my SSN to reimburse me for travel, I would appreciate it. (I’m not a tax law expert, just knowledgeable enough to be dangerous/annoying.) If they can’t show that they need this information, they don’t need it.
Thanks! Sorry for being prickly, but it’s my job.
Jim
Jim Harper
Director of Information Policy Studies
The Cato Institute
***************************
—–Original Message—–
From: elizabeth@conference.org
Sent: Friday, September 29, 2006 11:32 AM
To: Jim Harper
Subject: Re: Fw: W‑9 Forms Needed
Hi Jim,
While I understand your concern regarding needlessly sharing information, IRS regulations specify that a W‑9 must be filled out whenever receiving income from a company. Please see the “Purpose of Form” section on the front of the W‑9. Your travel reimbursement is technically considered income.
One way around this (to avoid having to fill a W‑9 out), however, is to send us all of you Original receipts and get reimbursed on those. Basically, in layman’s terms, the IRS is trying to avoid “double-dipping”. If we reimburse someone for receipt copies, that person can then claim/deduct the originals on their own personal/business taxes. The W‑9 form is the IRS’ tracking solution to this.
Please let Katie what you intend to do, so she can be on the lookout for either your W‑9 form or your original receipts in the mail (sent with tracking information for your protection). I hope this cleared things up a bit.
Thank you.
Elizabeth
Elizabeth LaFontaine
Senior Accountant
*********************
“Jim Harper”
10/03/2006 06:04 PM
Subject RE: Fw: W‑9 Forms Needed
Hi Elizabeth –
Sorry for the delay. I’ve been traveling. Again.
As I understand it (and I have double-checked), W‑9s are needed when you are going to file a 1099. If you believe that there is a requirement to file a 1099 on reimbursement of my travel expenses, could you please tell me where that is? Which 1099 would you file? If you think that it’s the 1099-MISC, please note that the threshold amount for filing the 1099-MISC is $600 in income.
And I have strong doubts that this is income. If you were to file a 1099 dealing with reimbursement for travel expenses, the IRS would be looking for it on my 1040, and I have never included travel expenses on a 1040.
Let me apologize for being a stickler about this, but many administrators believe they have to collect SSNs when they do not. It may be that you are over-collecting SSNs and possibly even filing forms you don’t need to.
If you can point me to documents showing that I’m mistaken, I welcome being corrected. But unless you do, I’m pretty sure that you don’t need a W‑9 and can issue a check to me.
Thanks!
Jim
Jim Harper
Director of Information Policy Studies
The Cato Institute
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Hi Jim,
As I stated in my previous email, you do not need to fill out a W‑9 if you do not wish to. Simply send all of your original receipts to Katie so she can process your check. Unfortunately, that is the only way you will be reimbursed. Sorry for any inconvenience, but those are the policies we strictly abide by and they in no way infringe upon any reservations you may have about providing information you don’t want to provide.
Please let Katie know when she can be expecting your receipts in the mail. We will reimburse you $4.55 for Priority mail with Delivery Confirmation if you’d like.
Regards,
Elizabeth
Elizabeth LaFontaine
Senior Accountant
