What steps should a reporting entity take if it does not have an employee's dependent's Social Security Number (SSN) for Section 6055 reporting purposes?

Author: Gloria Ju

According to the Internal Revenue Service (IRS), a reporting entity must demonstrate that it acted in a responsible manner to obtain a dependent's SSN. Three solicitations are required:

  1. The initial solicitation is made at an individual's first enrollment or, if already enrolled on September 17, 2015, the next open season;
  2. The second solicitation is made at a reasonable time thereafter; and
  3. The third solicitation is made by December 31 of the year following the initial solicitation.