Currently, about half of the 10 million replacement cards issued annually are for name changes related to marriage, divorce, adoption, etc. These groups are expected to be least able or willing to report changes if a fee is required. However, some degree of non-reporting is expected among the general population as well. Failure to report name changes timely to SSA increases SSA costs to reconcile discrepancies in wage reporting and other processes. For example, SSA and IRS records are matched for name and SSN in processing tax returns.
Mismatches delay processing including payment of tax refunds.
The extent of these problems and their associated costs to the government could not be projected for purposes of this report since, to a large degree, non-reporting is likely to be directly related to the amount of the fee and to the absence or presence of any perceived disadvantage, loss or harm to the number holder for failure to report. Legislation would need to be enacted and a regulation promulgated to announce and govern imposing and collecting the fee. The SIN card is made of plastic without any technological enhancements. No fee is charged for a name change or when the card is lost in a natural disaster and the welfare system provides funds to pay the fee for its clients who are unable to pay. The fee charged in Canada is designed to generate revenue and has remained unchanged since 1985, due to enhancements in automation of their systems and political pressure to avoid increases.