Illegals filing taxes more than ever

[peejay 327]

Illegals filing taxes more than ever

While trying to avoid one federal agency, they collaborate with IRS

The Associated Press

Updated: 5:37 a.m. CT April 13, 2007

RICHMOND, Calif. - Carlos Diaz broke the law when he crossed the border and took a job as an office janitor. But he’s not about to break another by failing to pay his income tax.

“I’ve been talking to other people who’ve done it, and I want to follow the law,” said Diaz, an undocumented immigrant from Guatemala who squirmed in his seat at a neighborhood tax preparer’s office.

Tuesday is Tax Day, when millions of illegal immigrants find themselves collaborating with one federal agency — the Internal Revenue Service — while trying to avoid another — Immigration and Customs Enforcement.

They hope a track record of on-time payments will aid their citizenship applications, but critics who favor tougher enforcement of federal immigration rules say it’s absurd for the government to work with people it should be tracking down and deporting. It legitimizes the presence of immigrants who are here illegally, critics say, and sends a mixed message about the country’s interest in enforcing its own rules.

“The word schizophrenic comes to mind,” said Marti Dinerstein, president of Immigration Matters, a research firm that advocates tighter immigration enforcement. “There is something fundamentally wrong about this.”

The IRS created a nine-digit Individual Tax Identification Number in 1996 for foreigners who don’t have Social Security numbers but need to file taxes in the U.S. But it is increasingly used by undocumented workers to file taxes, apply for credit, get bank accounts or even buy a home.

The IRS issued 1.5 million ITINs in 2006 — a 30 percent increase from the previous year. All told, the tax liability of ITIN filers between 1996 and 2003 was $50 billion. The agency has no way to track how many were immigrants, but it’s widely believed most people using ITINS are in the United States illegally.

One number hints at the number of illegal immigrants having income taxes deducted from their paychecks.

In 2004, the IRS got 7.9 million W-2s with names that didn’t match a Social Security Number. More than half were from California, Texas, Florida and Illinois, states with large immigrant populations, leading experts to believe they likely represent the wages of illegal immigrants. Even immigrants who use ITINs to file taxes are forced to make up a Social Security Number when they get a job.

Critics like Dinerstein believe the process makes room for law violators, and in some cases, might endanger the country by allowing them to operate more freely.

“That’s why people who are living here illegally rushed to get ITINS like they’re chocolate candy,” said Dinerstein. “It’s a national security issue.”

IRS spokeswoman Nancy Mathis said the ID numbers are issued strictly to track a tax return’s progress through the system, noting the tax code says nothing about whether foreigners filing taxes are here legally or not.

“It serves no other purpose,” she said, “and was never intended to serve any other purposes.”

Nor does the IRS share immigrants’ personal information with ICE or any other agency, Mathis said.

To avoid any resemblance with Social Security cards, the IRS stopped issuing cards and instead sends a letter bearing the tax ID number. Still, these numbers do end up being put to other uses by a population eager for any form of official ID, and by companies interested in doing business with them.

Many banks now allow illegal immigrants to open an account with their ITIN, and Bank of America has a pilot program in Los Angeles that allows customers to use the numbers to sign up for a credit card. Others have created mortgage products for ITIN-bearing immigrants, including Citibank, which offers one in partnership with ACORN Housing Corp.

“They want to go forward, work, be a normal taxpayer,” said Erica Gonzalez, a staffer in ACORN’s Fresno office, where demand for the tax ID has shot up in recent years. “If they want to establish themselves here, this lets them do that.”

Five states — West Virginia, Kentucky, New Mexico, Utah, and Illinois — also allow ITINs to be used as identification for a drivers’ license.

This is what rankles the system’s critics.

“The IRS never anticipated this phenomenon,” said Dinerstein. “They thought it was going to be some boring tax compliance number.”

To Ben Johnson, director of the Immigration Policy Center at the nonpartisan American Immigration Law Foundation, the widespread use of tax ID numbers is another sign that the immigration system is broken.

“The U.S. economy hangs a huge ’help wanted’ sign at the border, and they come to work, not to hide,” he said. “A lot of people struggle with the idea they’re here without permission, and want to find a way to operate legitimately, like a normal hardworking person.”

Judging by the crowded waiting room at Esteban Ramirez’s modest tax preparation office in Richmond, where a television blared Spanish-language soap operas, it’s clear undocumented immigrants are growing increasingly comfortable around a Form 1040.

Some are interested in getting refunds, like the approximately 80 percent of tax filers who get them each year. Although ITIN users don’t qualify for the Earned Income Tax Credit, which could give a break to an American earning in the same bracket, they can get other tax credits, and can use ITINs to claim dependents in Mexico.

At the end of his session with Ramirez, 18-year-old Diaz found he would have to pay, as he’d expected.

The $800 payment is steep, he said. But if it helps him to build a lawful life in the United States — a life he hopes will include his own janitorial business, and in the future, college — it’s worth it.

“It’s better to stay on the right side of the law,” he said.

2007 The Associated Press.

http://www.msnbc.msn.com/id/18077009/

[JoeMama 0]

Illegals filing taxes more than ever

While trying to avoid one federal agency, they collaborate with IRS

Some are interested in getting refunds, like the approximately 80 percent of tax filers who get them each year. Although ITIN users don’t qualify for the Earned Income Tax Credit, which could give a break to an American earning in the same bracket, they can get other tax credits, and can use ITINs to claim dependents in Mexico.

This is the only reason why they would try to even file a tax return. There's a chance to get money to send back to their home country. Forget they're still here illegally in the first place! It's time the government started rounding up these people. With illegals filing tax returns, it's an opportunity to grab them and send them back!

[peejay 327]

Illegals filing taxes more than ever

While trying to avoid one federal agency, they collaborate with IRS

Some are interested in getting refunds, like the approximately 80 percent of tax filers who get them each year. Although ITIN users don’t qualify for the Earned Income Tax Credit, which could give a break to an American earning in the same bracket, they can get other tax credits, and can use ITINs to claim dependents in Mexico.

This is the only reason why they would try to even file a tax return. There's a chance to get money to send back to their home country. Forget they're still here illegally in the first place! It's time the government started rounding up these people. With illegals filing tax returns, it's an opportunity to grab them and send them back!

How can somebody file a tax return for a refund on income using someone elses' stolen Social Security number or a fake number (example: 000-00-0000) illegally? If he used fraudulent documents to get Federal tax withheld while working illegally...what's with the ITIN too? If he had taxes withheld using a Social Security number...there is no need for an ITIN. That is assuming that the crooked employer even sent the $$$ to the US treasury in the first place instead of paying these illegal aliens cash. If these illegals are using an ITIN to declare income on cash payments I can understand. Somehow this angle in the story doesn't add up.

The only reason these illegal aliens would even consider paying any taxes is if there is something in it for themselves...namely amnesty.

And if anyone believes these illegal aliens are declaring all their illegal cash paid income...they are stupider than the amnesty hawking morons in Congress that want us to believe they will.

Carlos Diaz broke the law when he crossed the border and took a job as an office janitor. But he’s not about to break another by failing to pay his income tax.

“I’ve been talking to other people who’ve done it, and I want to follow the law,” said Diaz, an undocumented immigrant from Guatemala who squirmed in his seat at a neighborhood tax preparer’s office.

But if it helps him to build a lawful life in the United States — a life he hopes will include his own janitorial business, and in the future, college — it’s worth it.

“It’s better to stay on the right side of the law,” he said.

None of these illegal aliens would do anything that is not of benefit to themselves.

If Carlos wanted to "stay on the right side of the law" he should pedal his illegal a$$ back to Guatamala after paying his taxes to cover the costs of his and his illegal amigos' costs to the taxpayer!

[mawilson 2,133]

If Carlos wanted to "stay on the right side of the law" he should pedal his illegal a$$ back to Guatamala

Hey, Carlos is a nice guy -- he was married to Gabrielle, you know.

[Bootylicious!! 2]

Even immigrants who use ITINs to file taxes are forced to make up a Social Security Number when they get a job.

This statement makes absolutely no sense. Javier worked the entire time he was here illegally with just an ITIN and filed his taxes that way. He never had a bogus/stolen social security number.

[Mr. Big Dog 10,747]

Even immigrants who use ITINs to file taxes are forced to make up a Social Security Number when they get a job.

This statement makes absolutely no sense. Javier worked the entire time he was here illegally with just an ITIN and filed his taxes that way. He never had a bogus/stolen social security number.

That is what doesnt make sense. Where on the I-9 is there a space for an ITIN in lieu of a SSN?

[Hilarious Clinton 452]

and can use ITINs to claim dependents in Mexico.

Oh the humanity!!! Deport them!!

[peejay 327]

Even immigrants who use ITINs to file taxes are forced to make up a Social Security Number when they get a job.

This statement makes absolutely no sense. Javier worked the entire time he was here illegally with just an ITIN and filed his taxes that way. He never had a bogus/stolen social security number.

But did he file for a refund? Did he get a refund? Did his employer actually send $$$ to the US treasury using an ITIN? Did his employer know it is illegal to work without work authorization and a Social Security number?

Does anyone even care? It doesn't sound like it.

Does corruption and malfeasance come to mind? It doesn't sound like it. Maybe it should!

Amazing!

Considering that tax refunds are filed for years ago dead people...I don't doubt anything. I don't even doubt that they get paid!

[homesick_american 1]

Un-freaking-believable.

The goddamned cheek of it really boggles the mind. They should have USCIS agents hanging around at every other tax prep office in the country and ship the fence-jumpers home.

[hmm1 0]

Un-freaking-believable.

The goddamned cheek of it really boggles the mind. They should have USCIS agents hanging around at every other tax prep office in the country and ship the fence-jumpers home.

This is bogus, especially the ####### we go through to do things the right way...give them amnesty, turn yourself in and give them a one way ticket to China...if they come back and cross the border...give them a one way ticket to the moon...damn illegal is illegal, our government needs to act on the laws it has, create a new one to punish business's that hire them.

[Otto 83]

i_9.pdf

Even immigrants who use ITINs to file taxes are forced to make up a Social Security Number when they get a job.

This statement makes absolutely no sense. Javier worked the entire time he was here illegally with just an ITIN and filed his taxes that way. He never had a bogus/stolen social security number.

That is what doesnt make sense. Where on the I-9 is there a space for an ITIN in lieu of a SSN?

Assuming an I-9 is ever completed...