Originally Posted by
adventurous1
First, thank you for your past military service.
No Sir you cannot opt out of taxes on your retirement pay (lol) - even if you wanted to because they use your Tax ID. That's the entire key. Once a worker provides a payor a TAX ID #, said worker is a TAXPAYER as it pertains to compensation from that particular payor. When the worker declines to provide a payor with a TAX ID #, the payor simply states so on an affidavit on the transmittal document. (It's the penalty of perjury clause that the payor signs for everyone anyway ). Then the Citizen is working and is not a Taxpayer (one word as defined by Congress) and is not subject to title 26 USC or 26 CFR (tax codes/ statutes).
btw, here's the code section, in part, from the Code of Fed Regs re: Identifying numbers.
26 CFR 301.6109-1 - Identifying numbers.
(a) In general
(1) Taxpayer identifying numbers
(c) Requirement to furnish another's number.
"When the person [payor] making the return, statement, or other document does not know the number [ SSN, TIN, EIN] of the other person [payee], and has complied with the request provision of this paragraph (c) [ payor asks the payee for a number], such person [payor] must sign an affidavit on the transmittal document forwarding such returns, statements, or other documents to the Internal Revenue Service, so stating."
Yup, it's that simple.