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As an employer I can tell you that a lot of illegals use phoney SS#'s and Fed taxes, SS taxes, and state tax are paid
I think this is the dirty little secret that prevents the Feds from taking any action. I did a little calculation assuming 30% of the IA's used phoney SS, and made 15K P/Y.
I came up with about 5B in money that would never have to be refunded, or paid out in SS.

Let me tell you haw it works. If a worker starts to work for someone say in January tax deposits are made all year, but NO SS# is reported until the final filing in February of the following year. It takes about 6 months after that filing for the IRS to send you a letter saying the SS# doesn't match. You ask the employee about it, they say "sorry I made a mistake here is the correct number". It will take at least another 3 months for the IRS to tell you that's not correct. In the meantime the employee has found a new job.

This can go on for ever. State unemployment forms are filed on a quartly basis and they ask for SS# and names, but they could care less if they are IA's they just want the money on time.

I do support the VAT or some form of Flat tax because the IRS regs are simply out of control, conflicting, and too costly to comply with.

However I think the Pols are real happy with all this money they are getting under the current system.

Wow! Thanks for the enlightenment. I don't think many people know about this.

It's truly amazing that in a computerized world when you can debit your checking count in a matter of seconds that it takes months for government agencies to respond. That's certainly something that has to change and it's an enforcement method that would definitely have some teeth. Instantly - Bad SS#=no job.

"Let me tell you haw it works. If a worker starts to work for someone say in January tax deposits are made all year, but NO SS# is reported until the final filing in February of the following year. It takes about 6 months after that filing for the IRS to send you a letter saying the SS# doesn't match. You ask the employee about it, they say "sorry I made a mistake here is the correct number". It will take at least another 3 months for the IRS to tell you that's not correct. In the meantime the employee has found a new job."

It would be very informative to ask your local congress critter for a dollar amount. IRS should have the figures.