In U.S. Illegally, But Still Paying Taxes
Controversy Swirls Over IRS' Acceptance Of Illegal Immigrants' Tax Returns
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Carlos Diaz, right, looks over his tax return that was prepared by Esteban Ramirez, left, at Esteban M. Ramirez and Associates in Richmond, Calif., Wednesday, April 4, 2007. (AP Photo/Jeff Chiu)
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"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. To obtain one, a person needs to submit to the IRS an application and a document that serves as proof of identity, such as a visa or driver's license. 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.
© MMVII The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.



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See all 53 Commentsimmigration, that's the businesses hiring them that you have to target, not the immigrants themselves but the people exploiting cheap labour.
For some reason, this administration is unwilling to go that way.
Angry, you betcha. It is news like this that makes my blood boil.
Oh Lord, I need to end this and get off my soap box before I get banned from this site.
Oh Lord, I need to end this and get off my soap box before I get banned from this site.
Posted by sallmaras at 12:11 PM : Apr 13,
I'm with you.
Why should we respect a group of people that has no education and can not follow the rules in their own country and expect them to follow our rules to be a citizen of this country. They should go back to their country and start the respectable way to be accepted as a true citizen that any country would want as a productive and law abiding citizen.
I think its great that they want to pay taxes. In fact they should make them all pay taxes! Do you realize the revenue that the country would make on illegal immigant taxes. They are here anyway. And if you deport they'll be back next week so why not? If you can't beat em tax em?
We have a big problem down here with them getting injured working on all the flood work and needing medical care. The hospitals have to eat it because the goverment won't reimburse a hospital if they treat an illegal immigrant (only if the admit that they are illegal while at the hospital...like that will ever happen). So hospital fills up with immigrants without insurance or public help of any kind. The hospital has to cut back on staff because of the shortfall of funds and we have to wait 8 hours in the emergency room because of it. Wonderful!
I bet if all those Mexicans had money so they could enroll in college they would have given them VIsa's with no problem. But you won't find a poor Mexican enrolling in college or hijacking planes. They just want to work at jobs that no one else wants. Let them pay taxes! Why not?
It starts with a form to get an EIN on;
Line 7. Enter the first name, middle initial, last name, and SSN of a
principal officer if the business is a corporation; of a general partner if a
partnership; of the owner of a single member entity that is disregarded as
an entity separate from its owner; or of a grantor, owner, or trustor if a
trust. If the person in question is an alien individual with a previously
assigned individual taxpayer identification number (ITIN), enter the ITIN in
the space provided, instead of an SSN. You are not required to enter an
SSN or ITIN if the reason you are applying for an EIN is to make an entity
classification election (see Regulations section 301.7701-1 through
301.7701-3), and you are a nonresident alien with no effectively
connected income from sources within the United States.
But there is an effectively
connected income sources from within the United States to substain the entity, which should void the application if an illegal used the EIN.
I think you'd just as soon take the $50 Billion. Calm down and move on...
costs to fund the Border Patrol.
The only cost-effective way to habdle
this whole thing is to enforce current laws
covering illegal aliens. We do NOT need any new laws - what we need and want is LAW ENFORCEMENT!
100 million dollar bank robber paying
back one cent on the dollar?
I'm sick of hearing "They just want to work at jobs that no one else wants" - for the low pay that employers offer.
You can get two Mexicans for $6 hr., now, what employer could pass up a deal like that?
Big contributors. BS. As I drive around I see far too many with 4 or 5 kids in tow, and 1 in the oven. Big smile on thier faces because they don't have to work to get by. All the while trashing up our nieghbor hoods, with loud carnival music, and hating those who say anything about it. Our forefather built this country and shed the blood,sweat, and tears to build this place into a better nation for their offspring. Not so others can come and reap the fruits of America by bypassing the hard work, blood,sweat, and tears that come with starting at the bottom and working your way up. None of them should have access to our welfare,medical, or educational services. To avoid this burden is why we have immigration laws. They should be followed and enforced. We were an open land, with room to inhabit in history, we are not now, and do not have the room to take care of other countries refuse. As far as stating they do work others don't. Well that's are fault, if we'd end welfare, and student grants, we'd have plenty to do that work. Starvation is a big motivator.
If its ok to come here illegally, then why should anyone apply to come here legally? Why don't the supporters of these illegal aliens go and tell the folks who are here legally how dumb they were.
Anyone working in the United States should pay taxes. That does not give them the right to break our laws.
Illiegal immigrants are more likely to have jobs and less likely to commit crimes when they are in the US than us "regular" citizens.
O'reilly tells you otherwise, if you want to know the truth than just open your eyes and stop hating.
Hate to have to inform you genius but coming into the country illegally IS A CRIME!!! They have ready broken the law before they even start their "jobs"
Get back under your rock.
It is bad enough that the Legal American tax payers have to pay for these people but no the greedy *** want to collect a tax refund. They don't pay for their childrens education, medical, insurance of any kind, many collect welfare and other public assistance, they cause lower wages for everyone, they do infact take away jobs from Americans and Legal immigrants. They protest our government, they have no respect for American, they send billions to Mexico every year, they cost American billions every year and THEY WON'T EVEN LEARN ENGLISH.
Ship them all home, I am so tired of the stinking FREE LOADERS.
Proof of what I have said all along. They DO pay taxes. Just like the rest of us. Well, the 99% of us who don't hold all the wealth pay taxes any way.
And they buy food and clothing and gasoline. Just like the rest of us.
They want a better life for them and their children. Just like the rest of us.
Mexicans, legal or otherwise commit more crimes than anybody, per capita. Just read the news, its all there.
Every time I to the food store I'm always behind a illeagal with kids a cart full & paying with a state check, NICE, thats BS
Mexicans, legal or otherwise commit more crimes than anybody, per capita. Just read the news, its all there.
Every time I to the food store I'm always behind a illeagal with kids a cart full & paying with a state check, NICE, thats BS
Absolutely right, redhoffer.
My very red state recently finished a study of who is committing all the crime in our state.
Surprise! Whites were committing more crime in relation to their proportion of the total population than any other group.
Latinos were found to be committing less crime in relation to their proportion of the total population.
Considering that profiling is very much alive and well in my state, I would imagine the Latino crime statistics might even be skewed to the higher side than what they really are.
As for the "carnival music" someone was whining about, the Latino community often includes music in their family-oriented celebrations. I think it is a delight!
Mexicans, legal or otherwise commit more crimes than anybody, per capita. Just read the news, its all there.
Every time I to the food store I'm always behind a illeagal with kids a cart full & paying with a state check, NICE, thats BS
Posted by Slim1H2O at 04:49 PM : Apr 13, 2007
And you stereotype to the Nth degree, which is even worse. You cannot assume that because what is being flashed all over the news as news (which would you choose as an editor of a news show or newspaper...the *** that people will read and eat up like candy or stories that people don't want to hear equating into less money in sales???) is truth.
Walk around and open your eyes and really look...do not just see. The most blind people in the world are those that can see, but never really look. Perhaps that child you see has parents that are working hard, but just can't make ends meet...like the millions of other human beings around the world. That is true whether you are Caucasian, African American, Latino, or a two-toed purple buck-toothed sloth.
At least these people are paying their taxes...more than we can so for millions of legal Americans.
INS/FBI Statistical Report on Undocumented Immigrants
2006 (First Quarter) INS/FBI Statistical Report on Undocumented Immigrants
CRIME STATISTICS 95% of warrants for murder in Los Angeles are for illegal aliens.
83% of warrants for murder in Phoenix are for illegal aliens.
86% of warrants for murder in Albuquerque are for illegal aliens.
I see it all the time with my own eyes
not the news & no not sterotyping.
You should heed your own advice
75% of those on the most wanted list in Los Angeles, Phoenix and Albuquerque are illegal aliens.
24.9% of all inmates in California detention centers are Mexican nationals here illegally
40.1% of all inmates in Arizona detention centers are Mexican nationals here illegally
48.2% of all inmates in New Mexico detention centers are Mexican nationals here illegally
29% (630,000) convicted illegal alien felons fill our state and federal prisons at a cost of $1.6 billion annually
53% plus of all investigated burglaries reported in California, New Mexico, Nevada, Arizona and Texas are perpetrated by illegal aliens.
50% plus of all gang members in Los Angeles are illegal aliens from south of the border.
71% plus of all apprehended cars stolen in 2005 in Texas, New Mexico, Arizona, Nevada and California were stolen by Illegal aliens or %u201Ctransport coyotes".
47% of cited/stopped drivers in California have no license, no insurance and no registration for the vehicle. Of that 47%, 92% are illegal aliens.
63% of cited/stopped drivers in Arizona have no license, no insurance and no registration for the vehicle. Of that 63%, 97% are illegal aliens
66% of cited/stopped drivers in New Mexico have no license, no insurance and no registration for the vehicle. Of that 66% 98% are illegal aliens.
to paraphrase a great American........
And thats the way it is, this april 13 07
BIRTH STATISTICS 380,000 plus %u201Canchor babies%u201D were born in the U.S. in 2005 to illegal alien parents, making 380,000 babies automatically U.S.citizens.
97.2% of all costs incurred from those births were paid by the American taxpayers.
66% plus of all births in California are to illegal alien Mexicans on Medi-Cal whose births were paid for by taxpayers
I see it all the time with my own eyes
not the news & no not sterotyping.
You should heed your own advice
Posted by Slim1H2O at 05:25 PM : Apr 13, 2007
I do and I see the hard-working single mothers who use their food stamps to put food on the table for their children while working 2 or 3 jobs and going to school at night. I see the mother at the corner holding a sign asking for work to feed her family and I took her shopping for food and I saw, with my own eyes, what had happened and listened to her story.
I agree there are bad people illegally entering the US, but there are bad people already in the US who are legal. What makes Americans so superior to the rest of the world? What makes Americans so sure that we are right and the rest are wrong? What makes you so special that you can automatically assume the worst of a child because you see food stamps in their hands? Have you ever gone hungry because you couldn't afford food? Have you ever been homeless? Have you ever tried your hardest to make a better world for your children, if you even have them, and fall flat on your face because the people in this world keep taking and taking and taking and that leaves the ones who are poor even worse off while the rich rake in their millions?!
I didn't think so. Shut up.
They did Clinton for telling ONE lie, Bush has a whole, overstuffed bag of them he has told us to screw this country up. Clinton just embarrassed himself and his family, he didn;t endanger the country or told us a whole slew of bold faced lies with a fiendish grin. Have we lost our guts and sense of right? We are governed by crooks and wimps. Someone better do something soon or USA is going down the drain and our Democracy will just be a memory.
Go figure
yes been hungry, just trying to pay these taxes
{income} I am disabled & no I don't get *** for help. So you shut up.
yes been hungry, just trying to pay these taxes
{income} I am disabled & no I don't get *** for help. So you shut up.
Posted by Slim1H2O at 05:50 PM : Apr 13, 2007
Then I apologize. However, there are genuinely people who are on the system who need it. They are just overshadowed by the ones who abuse it. That makes it difficult to know who the ones that are really trying to change are and the ones who just don't want to work and are using it as a free ride are. That was my point and I got too hot-headed to make it clearly. I apologize for that.
You know if we say we don't tolerate serial killers, you would call us haters! That's all your ilk knows how to spew. Haters! Liars! Nazi's! Do they publish that in the "Liberal Guide to Anarchy"? I've never enslaved anybody, and I haven't slaughtered any Native Americans. So stuff the ***. Maybe if the Native Americans would have stopped the first ship from landing they would not of been overrun. We should learn from that lesson, and not allow it to happen to us. One hand you libs hate America, then on the other claim we should be the savior to all. You must spend a lot of time in conflict with yourself, always kicking your own ***. I have mex freinds here legally, who have worked, and earned their way without handouts. They feel the same way about the wave of illegals pouring in here. I respect them. I do not respect the illegals who laugh at and mock our country, all the while raping it. I see new cars setting in their driveway, dirtbikes in the yard, as their kids march by my window all summer long to get a free breakfast from our school. At the taxpayer expense. While some work in ag, they get cash, they buy with cash and pay no taxes! The few that do will never pay enough to begin covering the large debt they've created. They commit serious crimes then run back to their country. At least when they enter legally, they know their rights will be pulled if they commit a felony. That is good incentive to be nice.
That's a huge laughable liberal leap! You're only repeating what the liberal yuppie bobble head dolls tell you to think. He cannot be impeached until he actually breaks the law. If he actually did break the law, don't you think the liberal congress would be all over it. Instead of just running their mouths with spins, and empty rhetoric trying to misguide you gullable sheep? I don't agree with Bush on this issue either so save the neocon comments. Maybe we should draft all the illegals, make them kick butt in Iran, Syria, and Iraq. Then the ones that make it back give them citizenship. 2 problems solved.
immigration, that's the businesses hiring them that you have to target, not the immigrants themselves but the people exploiting cheap labour.
For some reason, this administration is unwilling to go that way.
we need a system that will allow guest workers to be here while their labor is needed and allow them to seek citizenship, to make sure that they and their employers are paying into the system, and to assure that American citizens and legal immigrants go to the front of the hiring line.
The ability to do something about this problem begins with the practices of the employers. We need to be able to bring in labor that's needed in a process that's legal and to be sure that the people being hired are part of that process.
The answer isn't to say that you can't work while seeking to obtain citizenship.
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