Posted in: darrelrussell.com edit
08 Jan 2009
I would like to not pay into Social Security anymore. I currently am
a V.P. (Independant Contractor) of a Mortgage Company and a General
Partner in a Trading business. My Social Security is outragious per
quarter and I would like to invest it myself. I want to stop being
required to pay it further, but not lose what I have put in. Thank
you.The only legal way to avoid paying Social Security taxes is to
repudiate your Social Security number in writing to the federal
government. Regarding exactly how to do this, I cannot tell you.
I'm sorry my answer isn't crisp and decisive, but you asked a question
that potentially creeps over the legal line laid down by the federal
government, and I'm sorry to say that as far as I can tell, there is
no official or sanctioned means for getting out of the Social Security
system. People have done it, but there are no statistics regarding
their number or their ability to do business in this country after
they did it.
Not surprisingly, the Social Security Administration doesn't talk much
about this matter, and its Web site is unhelpful. But an individual
can contest his number and refuse to honor it. In such circumstances,
the SSA will almost certainly keep that person's information on file.
However, I would not recommend this tactic.
If you give up your SS#, for better or for worse, you are going to be
on a government short list for the rest of your life. There are plenty
of anecdotal tales of people being persecuted by the government for
doing this. I have no idea whether they are true. However, through my
reading of several publications and Web site and conversations with
those who know more about Social Security than I do, I can tell you
that:
* The IRS hates this tactic, which it views as nothing more than a way
to get out of paying taxes (which, for most people, is exactly what it
is.)
* The lack of a Social Security number may preclude you from ever
applying for benefits. In other words, if you are paralyzed in a car
accident and suffer sufficient injury that you cannot work again, you
will probably not be eligible for Social Security disability. I have
been able to find no information about whether or not retirement
benefits are available.
* There are also any number of state or local organizations or
businesses that will simply not do business with anyone who does not
have the proper identification.
* The lack of a Social Security number will probably make it more
difficult to obtain credit or find work. Though the Social Security
Act does not require one to have an SSN to work in the U.S., for
practical purposes, many employers will likely find it easier to toss
applications rather than deal with any potential difficulties with the
government.
I found a lot of information at independent Web sites, but the groups
that publish this kind of thing are not known for their success at
social reform. These people may indeed be telling the truth, but it's
apparent they have an axe to grind, and equally apparent that if you
follow their advice and it doesn't work, you're on your own.
All that aside, if you wish to stop paying Social Security taxes, you
can do so - at your own risk. Those Web sites offering instructions on
how to get out of the Social Security system, offered a caveat like
this one at http://www.buildfreedom.com/tl/tl17b.shtml. "Disclaimer:
This report is intended purely as a communication of information in
accordance with the right of free speech. It does not constitute legal
or tax advice. Anyone seeking such advice should consult a competent
professional. READERS ARE SPECIFICALLY ADVISED TO PAY ALL LEGAL TAXES
THEY ARE SUBJECT TO, AND TO OBEY ALL LAWS TO THE LETTER. Neither the
author nor the publisher assumes any responsibility for the
consequences of anyone acting according to the information in this
report."
When you hear things like that from the few people advocating a tussle
with the SSA, think twice before following their advice. But if you're
still game, here are some places you can go if you wish to try to get
out of the Social Security system:
Here's an excerpt from the American Patriot Friends Network Web site
(http://www.apfn.org/apfn/ssn.htm):
"The Social Security Administration May Not Remove The Record of Some SSNs:
A question was recently posed to the Social Security Administration
regarding rescinding an adult's Social Security number. The Agency's
response indicates that once payments have been made under an assigned
account number, the record of the Social Security number -- and all
information about the person it was assigned to -- will never be
removed from SSA files.
The Social Security Administration policy manual, "RM 00205.095,"
addresses this issue; it states:
"SSA does not change, void or cancel SSNs. In special situations, SSA
will delete the application information from the SSN record." This
specific SSA policy statement is in regard to numbers assigned to
children at birth.
However, the statement appears to be a "blanket" policy. Apparently
this is the SSA policy with regard to all assigned SSNs. Accordingly,
it appears that the SSA does not delete or remove SSNs from their
records under any circumstance. All indications are that once a SSN
has ever been assigned, the record is permanently maintained by the
Administration.
According to the Social Security Regulations, a person must use a SSN
if they apply for public benefits. An applicant for government
benefits who does not have, or does not use, a SSN will be denied."
The same information is available at
http://www.networkusa.org/fingerprint/page6/fp-ssnfaq.htm#Can%20I%20rescind%20my%20social%20security,
and I don't who who is the original author. There are some tips about
how to beat the system, though no evidence that they work.
You can find a sample letter to the SSA at
http://autarchic.tripod.com/files/ss-scam.html. The letter contains a
revocation of power of attorney. However, the letter is inflammatory,
and the writer (anonymous) labeled it for informational purposes only.
It does contain a lot of detail and legal precedents. I don't think
I'd send this letter, but it's fun to read the rant.
The buildfreedom site also provides a sample letter to the SSA, this
one written by a man named Anthony Hargis. It is shorter and less
inflammatory than the letter at the above Web site. Below the letter
is a list of organizations that will help you "terminate your SSN."
Based on my reading of the SSA handbook
(http://www.ssa.gov/OP_Home/handbook/ssa-hbk.htm), I don't know if
such "termination" is possible.
You might be thinking that I left out the most obvious strategy -
calling up the SSA and asking them. I have no doubt that if you did
that persistently enough, you could get a straight answer. Had you
asked a less-risky question, I'd have made the call. But I doubt this
is the kind of call that can be handled by an accountant who
calculates your benefits or a customer-service agent who tells you
which forms to fill out. I would be surprised if such calls were not
automatically routed to senior-level executives, and your name would
be on a list before you hung up the phone.
That's too risky for $20! Or for $200, as a matter of fact.
You didn't ask for my advice, but I'll give it anyway. I've known of
several people who considered this course of action. All, after
careful research, a new reading of the Constitution, and discussions
with a few people who actually did deal themselves out of Social
Security, decided not to do it.
I'm in the investment business and have no doubt I could earn returns
better than the SSA will deliver. But I wouldn't do this on a bet. I'd
advise you not to do it, either.
V
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