U.S. Tax Program for Illegal Immigrants Under Fire

by Bianca Vazquez Toness (NPR)

The hundreds of thousands of immigrants working in the United States illegally are still expected to pay income taxes. The program works by providing a special tax identification number instead of a Social Security number — and participants are guaranteed that the information can't be used to deport them.

But the program's critics say that it amounts to the Internal Revenue Service abetting illegal immigrants.

More than 1 million non-U.S. citizens will file their taxes this year. One of the reasons that those who are living and working illegally in the United States want to file taxes is that they see an opportunity to prove their economic contribution and document their residence.

Last year, 1.4 million people used the special numbers. The last time the government checked, more than half of the people using an individual taxpayer identification number, or ITIN, were illegal immigrants.

Federal tax law prohibits the IRS from sharing information with other government agencies, including immigration authorities. So it's the promise of confidentiality that allows immigrants to file their taxes without fear of being deported.

The U.S. Treasury created ITINs 11 years ago, to help people working here without Social Security numbers comply with U.S. tax laws. According to the law, if you earn money here you have to report it, even if you're here illegally.

Marti Dinerstein, president of Immigration Matters, a public policy firm in New York that advocates for stricter immigration laws, calls the situation "ridiculous."

"They know that people that are using ITINs are in the country illegally," Dinerstein says. "It's basically tantamount to institutionalizing illegal immigration in the country."

The IRS won't comment on this, although in congressional hearings, IRS officials have acknowledged concern that the ITINs may be used for non-tax purposes. In fact, some banks have accepted the numbers in lieu of a Social Security number.

Immigration officials say the IRS is just doing what it's supposed to do — collect taxes. They say the onus is on employers to verify the legal status of their employees.

New Health Insurance Program for Illinois

Website: Illinois Health Care Portal

All across the country, working families and businesses are struggling with the rising costs of healthcare. The cost of healthcare is skyrocketing. The number of uninsured is rising sharply. And it is becoming increasingly difficult for businesses, especially small businesses to provide health coverage for their employees and retirees.

There are nearly 47 million uninsured people in this country and 1.4 million are right here in Illinois. The result is that millions of people go through every day life without preventative medical care. They fear an accident or illness will wipe out their savings and destroy their lives.

But this issue goes well beyond the ranks of the uninsured. There are many middle class families struggling every month to pay for private insurance. The rising costs of healthcare force them to cut back on necessities and many cannot afford to save for college educations or even take a family vacation. More and more employers are providing less and less coverage because of astronomical costs.

Illinois has not and will not wait for Washington to act. The healthcare crisis must be addressed. The need is clear. The time is now.

On March 7th, I announced a plan to expand access to existing healthcare programs and create an affordable quality option for all men and women and small businesses in Illinois.

I also invite you to share your story with me. Please take a moment to let me know how the lack of health insurance or the high cost of private insurance impacts you and your family. You can also read about the plight of others in our Illinois Stories section.

Sincerely,
Rod R. Blagojevich