Undocumented workers get taxes in order

Thursday, April 12, 2007
By Shandra Martinez
The Grand Rapids Press


Three years ago, Rosemary Castro could count on her hand the number of clients who didn't have Social Security numbers.

These days, undocumented workers account for about 15 to 20 percent of the tax preparer's clients.

"They want to get their taxes in order in case of (immigration) amnesty," said the bilingual Castro, who works for Pro-Tax & Notary, 339 E. 16th St. in Holland.

Many of Castro's clients hope to build a tax history that will help their case if they apply to remain in the United States.

That thinking reflects a national trend.

More illegal immigrants and undocumented workers are filing tax returns either to get a refund or to meet a requirement of a five-year record of tax payments when applying for a green card.

"Many just want do it. In spite of unlawful entry, they are very committed to participating as Americans and following the law as much as they can," said Susan Reed, attorney with Justice for Our Neighbors, a ministry of the national United Methodist Committee on Relief, which provides free, professional legal services to immigrants.

The risk is low because Internal Revenue Service policy is to not share tax information with U.S. Immigration and Customs Enforcement, Reed added.

It's difficult to determine how many immigrants are filing tax returns because the IRS doesn't track filers by their immigration status. But paid tax preparation chains, such as H&R Block Inc. and Liberty Tax Service, say they have seen anecdotal growth and are working hard to attract more business.

One measure of the immigrant market is the growth of Individual Taxpayer Identification Numbers, or ITINs, which the IRS issues for use on tax forms instead of Social Security numbers.

Last year, the IRS issued 1.5 million ITINs, the most since the program was started in 1996 and a 30 percent increase from the 1.2 million issued in 2005.

In total, the agency has issued 10.8 million ITINs since the program began.

Seeing the demand for ITIN, Holland tax preparer Graciela Garcia became a "accepted agent" in January.

The IRS designation required an FBI background check and fingerprinting but no additional training.

The designation lets her verify the applicant had the proper identification.

Now, 60 percent of her business is from clients who have ITINs.

The one-time fee people pay for an ITIN depends on the tax preparer. Garcia charges $60, while Castro charges $95.

"We want to get rid of the barriers that keep people from actively participating as citizens," said Emily Aleman, executive director of the Hispanic Center of Western Michigan in Grand Rapids.

Finding a tax preparer who has an understanding of both the tax and immigration laws also can be difficult.

"Some people hold up tax codes and the Immigration & Nationality Act as the two most nightmarishly complex areas of law, and this is where they intersect," Reed said.



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