Route to legal status can be taxing

The Atlanta Journal-Constitution ^ | April 11, 2007 | ANNA VARELA

[hall77]

A steady stream of customers flowed into Grace Lopez-Williams' office on Jimmy Carter Boulevard. They were taxpayers, looking for help to file by this year's April 17 deadline.

Many of them were also illegal immigrants.

Norcross tax preparer Grace Lopez-Williams (left) talks with Ruth Santiago in the reception area of her accounting firm. She said she's seen an increase in the number of immigrants paying multiple years of back taxes, preparing for immigration reform that could require payment of back taxes for a chance at legal status.

It is not unusual for people who are here illegally to pay taxes. The Internal Revenue Service estimates that between 1996 and 2003 roughly $50 billion was collected from filers using Tax ID numbers, which are issued to illegal immigrants and others who cannot get a Social Security Number.

Why pay now? "To get ready for reform if it comes down," Lopez-Williams said.

Congress is expected to debate immigration reform this spring, and most proposals would allow some illegal immigrants who are already here to work toward legal status.

Filing tax returns could be a way to prove residency, show that a person was working and demonstrate the "good moral character" likely to be requirements under an amnesty plan or other immigration reform, Lopez-Williams said. Some proposals specifically say illegal immigrants would have to pay back taxes before they could begin a legalization process.

"They want to be in compliance when the time comes," said the Puerto-Rican native who has been operating an accounting and tax preparation business since 1998.

Arturo Bañulos, one of the filers at Lopez-Williams' office on Saturday, will have a solid tax record. The Doraville house painter said he has paid income taxes for 16 years, though he isn't here legally.

[hall77]

Source:

http://www.ajc.com/metro/content/metro/stories/2007/04/10/0411metimmtaxes.html

[Hugin]

With low incomes and large families they won’t owe anything. But with the Earned Income Tax Credit they should be able to collect some nice “refund” checks.

[capt. norm]

With low incomes and large families they won’t owe anything. But with the Earned Income Tax Credit they should be able to collect some nice “refund” checks.

It bears repeating.

That is EXACTLY what they are doing. They're hitting these "fast tax refund" business places (including H&R Block) and lining their pockets with EIC money.

The ones actually doing it have no knowledge of possible amnesty (to whatever degree), but they do know all about free money.

[hophead]

“But with the Earned Income Tax Credit”

BINGO We have a winner. Add to that logging the quarters for Social Security in the future when they are granted amnesty.

[ndt]

"Earned Income Tax Credit they should be able to collect some nice “refund”"

Tax Id#s do not qualify for the Earned Income Tax Credit.

[ndt]

"It bears repeating. That is EXACTLY what they are doing."

OK, I'll repeat it. Tax Id#s do not qualify for the Earned Income Tax Credit.

[ndt]

"'Earned Income Tax Credit'... BINGO We have a winner."

Wow, lets try again. Tax Id#s do not qualify for the Earned Income Tax Credit.

[Hugin]

No problem. Most illegals use “borrowed” SSN#s to get jobs. Sometimes up to 50 different people working under the same SSN#. The Social Security Adminstration doesn’t care. Just file under that # and collect an “instant rebate” through H&R Block, etc. By the time the IRS catches on it’s too late.

[capt. norm]

OK, I'll repeat it. Tax Id#s do not qualify for the Earned Income Tax Credit.

Don't know the details of how they do it, but it is happening. They are walking out with the cash nonetheless.

I recently (2005) left a partnership in a franchise check-cashing/money order store. We had a large number of illegal aliens cashing paychecks with us (at 2 - 3%) because there was nowhere else for them to cash them in this area.

It got to me..... and I sold out (during a business upswing) and I am glad to be out of that business.

* Most of the illegal aliens had North Carolina driver's licenses and not a single one of them that I ran on the computer, checked out as valid.

I guess all it takes is one state to 'drop the ball' and the rest of us have to pay for it.

[ndt]

"Sometimes up to 50 different people working under the same SSN#."

Ya right, the IRS is going to give 50 refunds to the same SS# and not notice. I don't think so.

[oldbill]

They are filing for the 2006 Tax Year.

The newest amnesty laws pushed by Bush, Flake, etc. specify that amnesty will be applied to those who can show they were here before June 2006. What easier way than to show they paid taxes for that year.

These illegals are getting a lot of good legal advice from the ACLU, La Raza, Mecha, and that ilk. This particular one is brilliant - it gets them a pass to amnesty, it qualifies them for EITC payouts, it gets them into Social Security in just 6 quarters (you need 40), and qualifies them for Medicaid, workman’s comp, and unemployment checks.

Once they get amnesty, they can immediately go on the dole and max out their unemployment checks. Their kids will qualify for Medicaid and free education. And you suckers will pay for every bit of it.

And then the greedy companies who pay off the politicians will be in need of more cheap labor, which they will bring in from Bangladesh and Eritrea and Indonesia and start the cycle all over again. And the children of the Pelosi and Bush and Reid and Kennedy political dynasties will pass the “Comprehensive Immigration Reform Act of 2025” to grant amnesty to these new invaders.

You, of course, will be living your golden years in abject poverty with no medical care and no pension. But you could look back fondly on those halcyon days when you watched the ballgame while Carlos cut your grass and Maria cleaned your toilets and Rajiv fixed your computer.

Thank you, Mr. President.

[Baladas]

Yep, technically, the Tax ID can’t be used for the EITC, but they are just about similar to SSNs, and as other pointed out, the SSN can be stolen.

One anchor baby will make them eligible for EITC.

[ndt]

"One anchor baby..."

Is that your euphemism for an American Citizen?

[Baladas]

No, that’s my euphemism for “[b] one way an an illegal alien receives the Earned Income Tax Credit”.[/b]

[rumrunner]

Before you spout off in an area that you know little about, educate yourself.

Start here http://www.treas.gov/tigta/auditreports/2004reports/200430023fr-redacted.pdf

[ndt]

"Before you spout off in an area that you know little about, educate yourself."

Mind stating exactly what in that 84 page document contradicts what I said, as far as I can tell, you are just trying to defect my comment by linking to documents that you probably have not event read yourself.

[Baladas]

That one’s kind of arrogant, huh?

Thanks for the link, i went to it and found out that there’s such an animal called “Adavanced Child Tax Credit”, that illegals CAN get.

http://www.acf.hhs.gov/programs/cse/pol/DCL/2003/dcl-03-20.htm

[ndt]

"Thanks for the link, i went to it and found out that there’s such an animal called “Adavanced Child Tax Credit”, that illegals CAN get."

That's a neat trick, especially since the word "Advanced" never even shows up in the PDF at the link. There is an "additional child tax credit" mentioned in the PDF, is that what you're referring to?

As far as the "Advanced Child Tax Credit" you linked to, where do you get the idea that it is available to illegals? There is nothing in there that event suggests that as a possibility.

[Baladas]

“From a tax policy perspective, unauthorized resident aliens benefit from the tax law
since they are treated virtually the same as U.S. citizens and lawful resident aliens. An
unauthorized resident alien is entitled to the same deductions and credits, except for the
Earned Income Tax Credit (EITC). Therefore, unauthorized resident aliens are eligible
for the Additional Child Tax Credit (ACTC), which is one of only two major credits that
can result in a Federal Government payment above the tax liability.”

http://www.irs.gov/newsroom/article/0,,id=109812,00.html

They can get that advanced, and then that’s what it’s called,and you know that. Stop spreading disinformation.

[ndt]

"They can get that advanced, and then that’s what it’s called,and you know that. Stop spreading disinformation."

I never said they couldn't, I said they couldn't' get the Earned Income Tax Credit, and that is correct.

I also asked "where do you get the idea that it is available to illegals?" and you have now provided evidence to back that up.

The only disinformation was the repeated claims that the EITC was available to illegals and I see you made no effort to contradict that.