IRS seminars, IDs Help Illegal Immigrants Pay US Taxes

Critics say one federal agency is accommodating lawbreakers that another agency is trying ferret out.

HOUSTON – It's been just an hour, but tax counselors at a recent IRS seminar at an immigrant community center have already seen 100 people and are facing an overflow crowd in the waiting room hoping for tax help. These people aren't in a quandary over new tax laws or changes to the code. These are illegal immigrants who – up until today – have been using false social security numbers to work in the United States. Immigrants like them are flocking in record numbers to IRS offices and seminars such as this one to learn how to become legal US taxpayers.The IRS has been quietly supporting this activity since 1996 when it created an individual taxpayer identification number designed for anyone who doesn't have a social security number.

This program has gained momentum as immigrants become aware of this option – and more fearless about their position in the US workforce.

It's an example of the tension over the growing acceptance of illegal immigrants in this country. While US Border Patrol agents play cat-and-mouse with those trying to enter the US illegally, other federal agencies are creating ways to accomodate the 7 million to 8 million illegal immigrants who are already here.

Some say the federal government's acceptance of this new tax ID number – as well its myriad other immigrant services, from education to health to housing – is a clear sign that the country has reached a certain comfortable level with illegal immigration from Latin America.

Others remain convinced that decisionmakers are going too far, undercutting law-and-order efforts by not enforcing immigration laws.

The IRS simply says it's smart business. Its job is to collect taxes from those who work, not determine who is eligible to work. To do that job, officials say, they needed to find a way to cut down on fraud.

"We had to do something," says Leandro Leon, education and communication director in the Houston IRS office. "These undocumented aliens were working here, using bogus Social Security numbers, and not reporting their income."

When the ID was first announced, Mr. Leon had a trickle of immigrants come to his office. But as word spread, and with assurances given that no immigrants' information will be shared with the Immigration and Naturalization Service, Mr. Leon started having to set up seminars to handle as many as 500 immigrants a night.

Those same high numbers can be seen at seminars all across the US. The IRS has signed up 5.3 million since the taxpayer ID program began in 1996.

"The majority of people here, regardless of their immigration status, want to pay their taxes and abide by the laws of this nation," says Aisha Qaasim, the legislative staff attorney at the Mexican American Legal Defense and Education Fund in Washington. "This tax ID allows them to do that."

Ms. Qaasim says the fact that the federal government is backing a program like this is a signal of official acknowledgement that millions of people live and work here illegally and will continue to do so.

No one knows exactly how much illegal immigrants contribute in taxes, but experts estimate it is billions of dollars. Many at the Houston seminar say they're interested in getting some of their taxes back. For the most part, says Leon, people in this segment of society live below the poverty line and will end up getting all of their federal income tax back.

A tax refund is one of the main reasons Lorenzo Arteaga Victoria is at the tax seminar. This Mexican immigrant has been living and working illegally in Houston for about 10 years and says he doesn't know how much he has paid in taxes in that time. But when one of his co-workers at a local bodyshop told him about the tax ID number, Mr. Arteaga was immediately interested.

"Oh, yes, I'd like to get some of that money back," he says, clutching his new tax papers. "But the principle reason is that I want to be correct with the law."

"It does show how even talk of amnesty begins to affect behavior," says Steven Camarota, of the Center for Immigration Studies in Washington. He's referring to the renewed amnesty talks between President Bush and Mexican President Vicente Fox planned tomorrow in Monterrey, Mexico. He believes anticipation of amnesty is motivating illegal immigrants to use whatever means they can to establish residency.

Mr. Camarota's research has shown that illegal immigrants actually use more in social services than they make up for in taxes. That's because their education level and immigration status result in very low wages that aren't taxed heavily to begin with.

"The question," he says, "... is how do we reduce illegal immigration. Not how do we work with those who are here."

"As of late we seem to be auditing only poor people," said IRS agent Jennifer Long. "The current IRS management does not believe anyone in this country can possibly live on less than $20,000 a year, insisting that anyone below that level must be cheating by understating their true income.

"Currently, in a typical case assigned for audit, there are no assets, no signs of wealth, no evidence that would support a suspicion of higher unreported income. So when the IRS does initiate an audit on these people, these individuals were already only one short step away from being on the street," Long continued.

"I can personally attest to the use of egregious tactics used by IRS revenue agents which are encouraged by members of the IRS management," Long said. "These tactics, which appear nowhere in the IRS manual, are used to extract unfairly assessed taxes from taxpayers, literally ruining families lives and businesses, all unnecessarily and sometimes illegally."

W A S H I N G T O N, March 1 - Just as millions of Americans struggle to meet the strict reporting standards set by the Internal Revenue Service, the tax-collecting agency itself has failed a federal audit.

The General Accounting Office today slammed the IRS for poor bookkeeping, paying out fraudulent refunds and leaving holes in computer security that may let outsiders ``access, alter or abuse'' taxpayer information.

Most significantly, the amount of money the IRS has failed to collect has reached a whopping $222 billion dollars - the same amount of money we spend every year on Medicare.

Most of it will never be collected, because it is owed by either bankrupt companies, failed savings and loans, individuals who are missing, or dead - or just plain deadbeats.

The litany of IRS failures was aired at a hearing today on Capitol Hill, drawing sharp criticism from lawmakers.

"I think the stockholders, the taxpayers, have every reason to demand a dramatic and immediate change and that includes debt collection," said Rep. Steve Horn, R-Calif., chairman of the government management subcommittee.

Debt collection was not the only problem found by the GAO. The IRS essentially failed the same sort of audit it forces upon taxpayers.

"Think of this as not balancing your monthly checkbook to the monthly bank statement," said GAO auditor Gregory Kutz, "and at the same time having a record-keeping system that was prone to error."

In some cases, the GAO said, the IRS had no record-keeping system at all. The IRS could not provide a list of what it owed outside vendors - such as utility companies that supply power to field offices.

Also, the IRS lost track of its own property. While some items may have been lost to theft, others simply could not be accounted for.

"We noted a missing Chevy Blazer, laptop computer and $300,000 printer," Kutz told lawmakers. "At one IRS field office, 19 of 130 computer assets over $50,000 each could not be located."

The IRS blamed antiquated computer systems for many of the snafus and asked for the same thing that many anxious taxpayers want: more time to fix the problem.

These people aren't in a quandary over new tax laws or changes to the code. These are illegal immigrants who – up until today – have been using false social security numbers to work in the United States. Immigrants like them are flocking in record numbers to IRS offices and seminars such as this one to learn how to become legal US taxpayers...

NO ONE knows exactly how much illegal immigrants contribute in taxes, but experts estimate it is billions of dollars. Many at the Houston seminar say they're interested in getting some of their taxes back. For the most part, says Leon, people in this segment of society live below the poverty line and will end up getting all of their federal income tax back.

It's illegal for the colonistas to come here, be here, and work here. Every one of them should be deported, with total asset forfeiture.
If anyone wants to know how to find them, how do you think we send them a tax refund?
For that matter, why should Illegals get a refund at all, since the work on which they paid taxes was in violation of the law?

I need help with this one: if you are here illegally, how are you paying tax? Employers need SS numbers to collect and submit taxes -- so how exactly can taxes be submitted without an SS number?

When I got my first job many moons ago, I forgot my SS card at home, and just made up a number on the job app. After the first week, the head of personnel tracked me down and demanded a valid SS number, since the one I gave them bounced.

I'm not naive enough to assume that all employers of illegals are actually making deductions from their pay -- but even if they were, how would they submit them without SS numbers?

I need help with this one: if you are here illegally, how are you paying tax? Employers need SS numbers to collect and submit taxes -- so how exactly can taxes be submitted without an SS number?

The Illegals use false SS numbers, which could be easily traced for the purpose of deportation. This has been going on for years for those Illegals not working under the table.
The real news in this article is that Illegals actually getting refunds. The IRS had long maintained that their computers couldn't keep track of the phony SS numbers.
Kinda makes you scratch your head, huh?

The Illegals use false SS numbers, which could be easily traced for the purpose of deportation. This has been going on for years for those Illegals not working under the table.

So the result is that false SS numbers are ignored when tax is paid, and are only pursued if they file for a refund. If that's the case, then the only rationale for a Tax ID number would be to obtain a refund. I wonder if it's retroactive -- if they can claim refunds for previous years that they paid taxes with a false SS?

I don't know about retroactivity, but would it surprise you?
Having the INS look the other way when they possess evidence of Illegal employees (and possibly employers, if they were aware of the fraud) is just another bipartisan aspect of this whole scandal.
Both parties are guilty up to their throats.

Our Government is totally corrupt. Both major parties are guilty as sin.

"There is one safeguard known generally to the wise, which is an advantage and security to all, but especially to democracies as against despots. What is it? Distrust." -- Demosthenes: Philippic 2, sect. 24

Those who trust the Dems and Repubs to do the right thing are being very foolish.

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