Tuesday, June 22, 2010

Undocumented Immigrants DO Pay Taxes

A recent article on undocumented immigrants and taxation reveals information from reports by the Congressional Budget Office and the Social Security Administration that confirm that undocumented immigrants not only pay sales tax, but that they also pay property tax, Social Security tax, and income tax. Unfortunately, many people, both immigrant advocates and adversaries, are unaware of the many ways undocumented immigrants contribute to our system of taxation, while reaping few, if any, of the benefits.

The article also explains the Individual Taxpayer Identification Number (ITIN), a number that allows individuals who are not eligible for a Social Security number to file an income tax return and receive refunds. But those individuals are not eligible to receive the Earned Income Tax Credit, a tax credit for low- to middle-income families. Fortunately, the Internal Revenue Service (IRS) takes taxpayer privacy very seriously; it cannot report a taxpayer to ICE or USCIS for getting an ITIN. IRS spokesman Frank Keith has stated in the past, “We are concerned when information provided by taxpayers to meet their legal tax obligations is used for purposes other than federal tax administration.” But a court can require the IRS to release taxpayer information if the taxpayer is in removal proceedings or suspected of terrorist activities.

To read the full text of this article, click here, or copy and paste this link into your browser: http://www.truth-out.org/the-price-that-we-pay-undocumented-immigrants-and-taxation60150?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%253A+TRUTHOUT+(t+r+u+t+h+o+u+t+%257C+News+Politics).

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