Case Law
EEOC v. Information Systems Consulting

CA3-92-0169-T

EEOC v. Information Systems Consulting

CA3-92-0169-T

IN THE

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF TEXAS

DALLAS DIVISION

1. From the EEOC's Letter of Determination, Dated May 2, 1990 (p.2):

The evidence supports the charge that there is a violation of Title VII of the 1964 Civil Rights Act, as amended,... Section 706(b) of
Title VII requires that if the commission determines there is a reasonable cause to believe that the charge is true, is shall endeavor to
eliminate the alleged unlawful employment practice by informal methods, of conference, conciliation, and persuasion, having
determined there is reasonable cause to believe the charge is true, the Commission now invites the parties to join with it in a collective
effort toward a just resolution of this matter.

2. From the Affidavit of Tim Fitzpatrick, September 29, 1989 (p.3):

After discussions with the IRS, the company discovered that if Mr. Hanson did not provide the company with a Social Security
number, the company would be in violation of the Internal Revenue Regulations and subject to various penalties.

3. From the Plaintiff's Response to Defendant's Motion to Dismiss, April 1, 1992 (p.8-9)

"....the Internal Revenue Code and the Regulations promulgated pursuant to the code do not contain an absolute requirement that an
employer provide an employee social security number to the IRS. Internal Revenue Code Section 6109(a)(3) states:

Any person required under the authority of this
title to make a return, statement or other
document with respect to another person,
shall request from such person, and include
in any such return, statement or document,
such identifying number as may be prescribed
for securing proper identification of such person.

26 U.S.C. 6109(a)(3) (Supp. 1992)"

The IRS regulation interpreting section 6109 provides:

"If he does not know the taxpayer identifying number of the other person, he shall request such number of the other person. A
request should state that the identifying number is required to be furnished under the law. When the person filing the return, statement,
or other document does not know the number of the other person, and has complied with the request provision of this paragraph, he
shall sign an affidavit on the transmittal document forwarding such returns, statements, or other documents to the Internal Revenue
Service so stating.."

Treas. Reg. 301.6109-1(c) (1991)

"The applicable IRS statute and regulation place a duty on the employer to request a taxpayer identifying number from the employee.
If document must be filed and the employer has been unable to obtain the number but has made the request then the employer need
only include as affidavit stating that the request was made."

The Government also avers that:

"In 1989, Internal Revenue Code Section 6676, 26 U.S.C. and 6676 (1989), set forth the penalties for failing to supply the IRS with
identifying numbers as required by the code....a $50.00 penalty will be imposed for failure of an employer to provide an identifying
number on any document filed with the IRS unless it is shown that the failure was due to reasonable cause and not willful neglect. The
Treasury Regulation interpreting the Statute states:

Under Section 301.609-1(c) a payor is required to
request the identifying number of the payee. If after
such a request has been made, the payee does not
furnish the payor with his identifying number, the
penalty will not be assessed against the payor.

Treas. Reg. 3106676-1 (1989)

"Public Law 101-239, Title VII, Section 7711(b)(1), Dec 19, 1989, 103 Stat. 2393, repealed Section 6676 of the Internal Revenue
Code, 26 USC 6723 (Supp. 1992) has governed the failure to comply with informaiton reporting requirement. However, Internal
Revenue Code Section 6724, 26 USC 6724 (Supp. 1992), provides for a waiver of any penalties assessed under the code upon a
showing of reasonable cause. Section 6724(a) provides:

No penalty shall be imposed under this part with
respect to any failure if it is shown that such failure
is due to reasonable cause and not willful neglect.

26 USC 6724(a) (Supp. 1992)

4.) From the Consent Decree, dated November 4, 1992 (p.4)

The defendant ... shall be permanently enjoined from terninating an employee or refusing to hire an individual for failure to
provide a social security number.... If an employee or applicant for employment advises the defendant that he does not have a
social security number....., the defndant shall request, pusuant to Section 6724 of the Internal Revenue Service Code {sic}, 26 USC
6724, a waiver of any penalties that may be imposed for failing to include an employee social security number on forms and
documents submitted to the IRS.

"As life is action and passion, it is required of a man that he be part of the action and passion of his times lest he be judged never to have lived."
-- Oliver Wendell Holmes, Jr.

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