Employers can't write off wages as a business expense unless the employee has a Social Security Number or a Tax Identification Number.
The employer would also need to be making monthly FICA and IRS withholding payments to all those fake (or stolen) SSNs and TINs.
Are SSN and TIN accounts so poorly protected that the IRS and Social Security do not detect ANY of this fraud?
I don't believe it.
I'll guess that 90% of employers pay cash to their illegal workers, and write off nothing.
Bottom Line - this idea is worth implementing, but its impact will be very limited.
You are correct. The Social Security Administration and IRS know about this fraud, yet they don’t do anything to stop it.
Why should they? Tax revenue is more important than deporting future supporters of bureaucracy and welfare!