
Are Undocumented Illegal Aliens Paying Income Taxes?
The answer is for the majority, yes. According to the IRS, non-citizens paid approximately $23.6 billion in total taxes in 2015. This number does not include those individuals that are using someone else's social security number to work illegally. According to The Institute on Taxation and Economic Policy (ITEP), a non-profit, non-partisan 501(c) organization, undocumented immigrants contribute to state and local taxes paying about $11.74 billion a year.
Undocumented aliens contribute to state and local taxes $11.74 billion a year
Unless an undocumented alien is working on a cash-only basis, he must find a way for an employer to hire them legally. Often this involves obtaining a valid Social Security Number (SSN) which is not his. In 1996 the IRS established the Individual Taxpayer Identification Number (ITIN) program so non-citizens could file and pay taxes. Unfortunately, many undocumented workers lack the proper documents required and are reluctant to provide information to the government they believe could get them deported. Even if they do apply for an ITIN, they typically take months to be issued. For the illegal immigrant, most times the need to work and earn money is immediate, forcing them to commit identity fraud.
About 1.8 million immigrants worked with fake or stolen Social Security Numbers in 2010
For an employer to hire an hourly or salaried employee, the employee must submit an I-9 form. In addition to other difficult to obtain documents, the applicant must provide a social security number.
Illegal aliens pay a lot of taxes, that’s a good thing right?
So illegal aliens pay a lot of taxes, that’s a good thing right? Not necessarily. When someone is earning income using your SSN, the IRS can hold you responsible for unreported income. If they file an income tax with your social security number, they’ll likely reject your return.
If this happens to you, you’ll be spending a lot of time completing Identity Theft Affidavits, filing police reports, and gathering the numerous documents the IRS will require to prove you are you. If you’re due a tax refund, you could end up waiting for over a year to finally receive it.
IRS can hold you responsible for unreported income
Even worse, the government could reject your claim for unemployment benefits because someone else is actively employed using your social security number. If they’ve used your SSN to establish credit and loans, you could be held responsible until such time you can prove that you were not the party responsible.
Illegal immigration is real, it's happening now, and it’s unlikely to stop. Most of the people coming are just looking to work and support their families, but, unfortunately, our government's policies sometimes force them into committing identity fraud to survive. Due to the sheer number incidents and that the government benefits monetarily, their help in preventing this type of crime is not forthcoming.
Don’t wait to be an identity theft victim
Don’t wait to be an identity theft victim. Protect yourself today. You can purchase Identity Shield identity theft protection for as little as $5.99 per month. Identity Shield monitors your credit and instantly alerts you via text and email if there is any attempt to access your credit. We even scan the Dark Web, the place on the Internet where social security numbers are bought and sold. If we find your’s, we’ll immediately notify you. Further, if you should become a victim of identity theft, our identity theft/fraud restoration guide provides the step by step guidance on how to quickly and calmly resolve these issues.
Call us today at (888) 556-7609 or click here to learn more about Identity Shield.