Thread: U.S. Tax Program for Illegal Immigrants Under Fire

http://www.npr.org/templates/story/stor ... Id=7718604

U.S. Tax Program for Illegal Immigrants Under Fire
by Bianca Vazquez Toness

All Things Considered, March 5, 2007 · The hundreds of thousands of immigrants working in the United States illegally are still expected to pay income taxes. The program works by providing a special tax identification number instead of a Social Security number — and participants are guaranteed that the information can't be used to deport them.

But the program's critics say that it amounts to the Internal Revenue Service abetting illegal immigrants.

More than 1 million non-U.S. citizens will file their taxes this year. One of the reasons that those who are living and working illegally in the United States want to file taxes is that they see an opportunity to prove their economic contribution and document their residence.

Last year, 1.4 million people used the special numbers. The last time the government checked, more than half of the people using an individual taxpayer identification number, or ITIN, were illegal immigrants.

Federal tax law prohibits the IRS from sharing information with other government agencies, including immigration authorities. So it's the promise of confidentiality that allows immigrants to file their taxes without fear of being deported.

The U.S. Treasury created ITINs 11 years ago, to help people working here without Social Security numbers comply with U.S. tax laws. According to the law, if you earn money here you have to report it, even if you're here illegally.

Marti Dinerstein, president of Immigration Matters, a public policy firm in New York that advocates for stricter immigration laws, calls the situation "ridiculous."

"They know that people that are using ITINs are in the country illegally," Dinerstein says. "It's basically tantamount to institutionalizing illegal immigration in the country."

The IRS won't comment on this, although in congressional hearings, IRS officials have acknowledged concern that the ITINs may be used for non-tax purposes. In fact, some banks have accepted the numbers in lieu of a Social Security number.

Immigration officials say the IRS is just doing what it's supposed to do — collect taxes. They say the onus is on employers to verify the legal status of their employees.

Bianca Vazquez Toness of member station WBUR reports.

Last year, 1.4 million people used the special numbers. The last time the government checked, more than half of the people using an individual taxpayer identification number, or ITIN, were illegal immigrants.

What are the 20+ million others doing? Not paying taxes? Working under the table? The next time an OBL says we pay taxes, throw 1.4 million at them. Can you imagine what would happen to this country if only 1 in 20 Americans paid their taxes?

I have been trying to think of a "legal" way to protest these tax ID numbers being used for banking and mortages.

What if millions of legal citizens requested a Tax ID number and insisted on using it for all banking and credit purposes? Refusing to give a Social Security number to anyone.
I can not refuse to pay income or property tax, because the IRS has too much power to take everything I have worked for. I don't want to violate any law, just to prove a point.

Any lawyers out there who can tell me if I could get in trouble for advocating that all US citizens apply for Tax ID numbers?

Immigration officials say the IRS is just doing what it's supposed to do — collect taxes.

Boy doesn't that sound familar. BOA anyone? Or anyone else trying to justify thier particapation in our demise.

Up Yours Uncle Sam!

In fact, some banks have accepted the numbers in lieu of a Social Security number.

Why does BoA come to mind?

BTW, can't illegals with TINs get EIC? Hey, what the heck, put down 10 dependents on federal/state tax withholding forms, little or no taxes taken out & then EIC to boot. Stupid, stupid, stupid US Government.

People with TINs are eligible for EIC. how many of these people claim children that are still in Mexico or don't exist. Once again Americans are being ripped off.

Not all people with TINs are illegals, many legal immigrants have TINs until they become citizens.

I know quite a few people who are resident-aliens (not US citizens yet but are in the process) all of which have SS#s.

Added to Home Page:
http://www.alipac.us/modules.php?name=N ... =0&thold=0

Originally Posted by had_enuf

[quote:1ouk3ik5]In fact, some banks have accepted the numbers in lieu of a Social Security number.

Why does BoA come to mind?

BTW, can't illegals with TINs get EIC? Hey, what the heck, put down 10 dependents on federal/state tax withholding forms, little or no taxes taken out & then EIC to boot. Stupid, stupid, stupid US Government.

[/quote:1ouk3ik5]

This is exactly what happens, my sister is a tax accountant, and she says they clam an outragous amount of dependants, she also says they come in with ss cards that are obviously no good, because of the sequence of the numbers.

Originally Posted by Beckyal

People with TINs are eligible for EIC..... Once again Americans are being ripped off.

sorry but no... you're wrong. people with ITIN are NOT elegible for EIC.

You must meet the following EITC requirements:

Must have a valid Social Security Number

You must have earned income from employment or from self-employment.

Your filing status cannot be married, filing separately.

You must be a U.S. citizen or resident alien all year, or a nonresident alien married to a U.S. citizen or resident alien and filing a joint return.

You cannot be a qualifying child of another person.

If you do not have a qualifying child, you must:
be age 25 but under 65 at the end of the year,
live in the United States for more than half the year, and
not qualify as a dependent of another person

and before you tell me how there is a way around it, let me tell you I am an accountant & there is isnt. Any tax professional software wont allow you to enter an ITIN and claim EIC & if you managed to somehow trick the software, as soon as the IRS receives the tax it would be disallowed.

Can you imagine what would happen to this country if only 1 in 20 Americans paid their taxes?

i wonder how many do? im sure its more than 1 in 20 but have you ever looked at the delincuent list that they have? let me remind you, filing doesnt mean paying.

Any lawyers out there who can tell me if I could get in trouble for advocating that all US citizens apply for Tax ID numbers?

"IRS issues ITINs to foreign nationals and others who have federal tax reporting or filing requirements and do not qualify for SSNs. A non-resident alien individual not eligible for an SSN, who is required to file a U.S. tax return only to claim a refund of tax under the provisions of a U.S. tax treaty, needs an ITIN."

you may or may not get in trouble for advocating, but its not legal for someone who can get a ss to apply for an itin. but if you're still interested in acquring one, there are americans who have done so already, they see it as a way of starting over on their credits & taxes & other things that would require their ss#, i've seen it advertised.

how many of these people claim children that are still in Mexico or don't exist

Dependents-

To claim a dependency exemption for a qualifying child or a qualifying relative, the citizen, national, or resident test and joint return test must be met.

To meet the citizen, national or resident test, an individual must be a citizen or national of the United States, a resident of the United States, or a resident of Canada or Mexico

North American Free Trade Agreement

You must include a valid social security number, individual tax payer identification number (ITIN), or adoption taxpayer identification number (ATIN) for each dependent claimed on your tax return or the exemption will be disallowed

to apply for an ITIN for a dependent you have to prove that they exist now. proving that they were born is not enough, you have to submit current documents proving their existence

This is exactly what happens, my sister is a tax accountant, and she says they clam an outragous amount of dependants, she also says they come in with ss cards that are obviously no good, because of the sequence of the numbers.

if they claim an outrageous amount of dependents & cant bk them up.. guess what?? they gotta pay taxes.. & let me tell you something about that, a lot of times its not their fault, but their employers. Their employers fill out their w4's for them & put that many dependents on there because just like many people they assume that they will not file taxes so they think they are helping them by not having so much taken out of their paychecks. I am always teaching people how to properly fill those forms out to have to correct amount of taxes taken out. And if someone tries to do a tax with a fake ss# you sister needs to tell them no..because she might wind up getting in trouble. a tax with a bad ss# is no good, the irs is just going to reject it, that is exactly the situation when someone needs to apply for an ITIN