Thread: Some IAs paying taxes; claim dependents in Mexico???

Some undocumented immigrants paying taxes, but nobody sure how many
By Matt O'Brien
Contra Costa Times
Posted: 04/15/2009 04:07:36 PM PDT
Updated: 04/16/2009 06:12:20 AM PDT

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* Apr 15:
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* Apr 16:
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PITTSBURG — Week after week before Tax Day, they arrived at H&R Block with bundles of paperwork bound by elastic bands.

They lived nearby. They worked nearby. They just happened to be illegal immigrants.

"You have some really hardworking folks who are just trying to buy into that American dream," said Rene Steele, who works at the Buchanan Road branch of the national tax preparing company. "I try to take a neutral stance and say, you know, they're paying taxes. Everybody's trying to contribute."

Among the Californians who filed their tax returns before Wednesday's deadline were an untold number of undocumented immigrants. No one knows for sure how many of the state's estimated 2.7 million illegal immigrants participate in the civic duty.

"The reality is there's absolutely no way of knowing," said Jean Ross, spokeswoman for the California Budget Project. "There is no such question on your tax return."

Magnus Lofstrom, researcher at the Public Policy Institute of California, said the information would be helpful to have in the debate over the costs and benefits of immigration.

The Obama administration has broached the possibility of pursuing immigration reform this year, including exploring a path for legalization for the millions living in the country illegally. About 10 percent of California's work force is undocumented, according to a report released Tuesday by the Pew Hispanic Center.

But Lofstrom said it is a challenge to understand the tax impact.

"There's no credible study that I'm aware of," he said. "The bottom line issue is lack of data."

The Internal Revenue Service does not have a method for measuring the annual tax contribution of undocumented immigrants because it does not ask tax filers about their immigration status, said spokesman Jesse Weller. Undocumented immigrants, who cannot legally obtain Social Security numbers, can legally file their returns by obtaining a special taxpayer ID number. Those applicants are not eligible for many of the benefits that other taxpayers receive — such as Social Security benefits and the earned income tax credit.

But there are a few other benefits of going through the process, including being able to claim dependents in Mexico. And many are motivated by the possibility of someday becoming a legal resident, said Carol Perez of the Community Housing Development Corporation in Richmond.

"Most people know that if they want to gain status — immigrant status here — one of the first things they'll be asked is if they're paying taxes," said Perez, who coordinated free tax help sessions throughout Contra Costa County this year as part of the "Earn It, Keep It, Save It" program.

Many illegal immigrants use false Social Security numbers to obtain work, yet using those for tax purposes is a "major misstep that would get discovered," said Francine Lipman, a law professor in Orange County who has helped immigrants with their tax returns. While more undocumented immigrants have grown comfortable with using the alternative taxpayer ID numbers — the IRS has issued about 15 million of them since 1996 — some avoid tax filing altogether.

"I think there's a lot of fear," Perez said. "People are afraid if they apply for (the taxpayer number) there might be some kind of repercussions."

In 2006, the IRS told Congress that those with the special nine-digit ID numbers contributed $50 billion to the IRS from 1996 to 2003, although not all of those with the ID numbers are illegal immigrants.

Lipman said her "strong sense is undocumented immigrants are paying billions a year in taxes."

Another close observer of immigration issues disagrees.

Yeh Ling-Ling, director of the Oakland-based Alliance for a Sustainable USA, argues that even those illegal immigrants who do pay income taxes are creating on overall burden.

"They have low skills and low incomes," she said. "Any taxes they pay are simply not enough to offset the cost of educating their children."

For now, most of the arguments about the contribution of undocumented immigrants to the state and federal tax rolls are speculation.

"Nobody knows what fraction of undocumented folks actually have income taxes withheld," said Matt Gardner of the Institute on Taxation and Economic Policy. "It's important to recognize the answer is something more than zero, but zero is what a lot of folks are asserting."

Reach Matt O'Brien at 925-977-8463 or mattobrien@bayareanewsgroup.com.
http://www.contracostatimes.com/localnews/ci_12149803

The ONLY reason they file taxes are to get the Earned Income Credit for each of their anchors. Most don't make enough to pay taxes anyway!


Want to know how many illegal aliens file? Check the ones with ITIN numbers! Then check how many under age 17 dependents they have. They MAKE money!

The low amount of taxes illegals pay doesn't come close to the amount of resources they use up. And when and if Obama Amnesties them into our country the tax ratio will be even more so in their favor.

RELATED

IRS allows $7BILLION improper tax credits for illegal aliens

http://www.alipac.us/ftopicp-883962.html#883962
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RELTED

Services for illegal aliens cost CALIF. $6 BILLION a year

http://www.alipac.us/ftopicp-883967.html#883967

Originally Posted by JohnDoe2

RELATED

IRS allows $7BILLION improper tax credits for illegal aliens

http://www.alipac.us/ftopicp-883962.html#883962
------------------------------------------------------

RELTED

Services for illegal aliens cost CALIF. $6 BILLION a year

http://www.alipac.us/ftopicp-883967.html#883967

Thanks JohnDoe2, I was going to post those links here. (I was writing an email to CNN on Susan Roesgen's performance at the Chicago Tea Party yesterday) and ya beat me to it! Thanks again!

They're just now paying attention to this?!! I am so impressed! Several years ago, there was an illegal alien sob story in Texas Monthly and the illegal alien they were highlighting came right out and said how he got the earned income credit. Nobody said a thing! Went right over everybody's head. LULAC, NCLR, the Mexican embassies have all taught them how to claim this credit. They've been doing it for years receiving as much as $4500 back per year.

Now they report on one year - 2007. Well, DUH!

The tax code requires a Social Security number or ITIN number for all claimed dependents. I guess all they have to do is get an ITIN number for their Mexican kids and get more tax refunds.

The original ITIN applications said the EIC was not was not available to ITIN filers. Guess no one is watching.......big surprise