Now take a look at the following quote from IRS, Treasury Reg. Section 601.602 Tax forms and instructions. The Internal Revenue Service develops forms and instructions that explain the requirements of the Internal Revenue Code and regulations. The Service distributes the forms and instructions to help taxpayers comply with the law. As most of you know, the IRS requires that individuals have social security numbers for their children in order to take a deduction on a tax return for a child.
Many individuals object for religious reasons and have refused to get social security numbers.
This last year, the IRS finally began to disallow deductions for children if social security numbers were not provided. Recently, one individual effected a settlement in Federal Court. The government backed down 100 percent and offered to allow a deduction for the children and to pay the fellow's court costs. He had paid the tax and filed a claim for a refund. The IRS refused to grant the claim for a refund, so he sued in Federal Court.