Social Security Number Assignment Method Changed | Tax Tip of the Week | No. 105

Social Security Update - Part 2

The Social Security Administration (SSA) has initiated a new method of assigning Social Security numbers (SSN) to new applicants. In the past, a person applying for a SSN would be assigned a number based on his or her geographic residency. The first three numbers of the SSN, known as the area number, were assigned to individuals in specific states.
Effected changes:  Beginning June 25, 2011 new applicants will be assigned a random number. The SSA will eliminate the geographical significance of the first three digits of the SSN. Randomization will also introduce previously unassigned area numbers for assignment.Not changing:  The length of the SSN will remain at nine numeric digits. Also, the SSA will not assign area numbers of 000, 666, and between 900 and 999.  The group number, the fourth and fifth digits of the SSN, will not be assigned 00. Also, the serial number, the last four digits of the SSN will not be assigned 0000.The new assignment process will only apply to those receiving a SSN for the first time. However, current number holders can receive a new number under the following circumstances:• Sequential numbers assigned to members of the same family are causing problems.• More than one person is using the same number.• An individual has religious or cultural objections to a certain number or digits in the original order.• A victim of identity theft continues to be disadvantaged by using the original number.• Situations of harassment, abuse, or life endangerment.Benefits:   Changing assignment methodology will extend the available pool of nine digit SSNs in every state. The SSA believes randomly assigned numbers will also protect the integrity of the SSN. In addition, randomization will protect an individual by making it more difficult to reconstruct a SSN using public information about that individual.Editor’s Note:  Sounds like a good change to us.

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Remember Those Social Security Statements You Receive Each Year Around Your Birthday? | Tax Tip of the Week | No. 104