ITIN

[mrichman333]

My only experience with ITINs are for spouses with no income. Now I have a contractor that wants to start w-2ing his employees and one has a ITIN.

Help me with this.

An ITIN allows a person to pay taxes but not to work in the USA.

It’s not to be used outside the tax system, but illegal immigrants are using them to open bank accounts and get credit.

You can be in the country illegally and get a ITIN

You cannot W-2 and legally hire a person with a ITIN they nust have a S.S.#

[Elrod]

SEE,

http://www.irs.gov/Individuals/General-ITIN-Information

[mrichman333]

SEE,

http://www.irs.gov/Individuals/General-ITIN-Information

Oh, I read it all, I just can't believe it. Like this part "Federal tax law prohibits the IRS from sharing data with other government agencies including the Department of Homeland Security, assuring unauthorized aliens that the tax information will be confidential and will not be used to initiate removal procedures”

“Unauthorized aliens” = ILEGAL

ONLY IN AMERICA!!!!!!

[gianni1212]

Oh, I read it all, I just can't believe it. Like this part "Federal tax law prohibits the IRS from sharing data with other government agencies including the Department of Homeland Security, assuring unauthorized aliens that the tax information will be confidential and will not be used to initiate removal procedures”

i understand your point, but i would much rather unauthorized aliens pay taxes than work for cash and pay no income or social security taxes on that income. If you only knew the advantage this gives illegal aliens you would feel the same.

Side note, they really aren't illegal in my point of view until they break a law that is logical...guy comes across the border to feed his family and i'm not really going to call him illegal because i'm sure any of us would do the same thing in his shoes.

[mrichman333]

i understand your point, but i would much rather unauthorized aliens pay taxes than work for cash and pay no income or social security taxes on that income. If you only knew the advantage this gives illegal aliens you would feel the same.

Side note, they really aren't illegal in my point of view until they break a law that is logical...guy comes across the border to feed his family and i'm not really going to call him illegal because i'm sure any of us would do the same thing in his shoes.

But you can NOT hire them legally. You can NOT W-2 them with a ITIN. So where is the sence in that. Try and cross the Mexican boarder ilegaly, on the Southern Boarder of Mexico they have their army posted there and will shoot and put you in jail .

I'm sorry they live in a poor country, but that dosn't mean you get to come here without the right papers etc.

Try and cross the N. Kerean boader and tell them your not doing anything ilegal.

[mrichman333]

ITINs have also been criticized for their use by illegal immigrants and undocumented workers. A report last year from the Treasury Inspector General for Tax Administration found that individuals who are not authorized to work in the United States were paid $4.2 billion in refundable tax credits such as the Additional Child Tax Credit in 2010 because they were able to file tax returns using an ITIN (see Illegal Workers Got $4.2 Billion in Tax Credits).

[Pacun]

Why don't we limit ourselves to prepare taxes, which is our area of expertise and let the homeland security use their expertise on those issues?

[ILLMAS]

But you can NOT hire them legally. You can NOT W-2 them with a ITIN. So where is the sence in that. Try and cross the Mexican boarder ilegaly, on the Southern Boarder of Mexico they have their army posted there and will shoot and put you in jail .

I'm sorry they live in a poor country, but that dosn't mean you get to come here without the right papers etc.

Try and cross the N. Kerean boader and tell them your not doing anything ilegal.

http://www.gagtics.com/wp-content/uploads/Thank-You-Jesus.jpg

[mrichman333]

Why don't we limit ourselves to prepare taxes, which is our area of expertise and let the homeland security use their expertise on those issues?

I have a customer that wants me to do is payroll, which includes TAXES. I discovered one worker has a ITIN. He is not in the country legally. The IRS (the TAXing athority) say employeed must have SS# and not ITINS

Summary: The July 7, 2011, report of the Treasury Inspector General for Tax Administration provides summary data from IRS tax returns that show illegal immigrants collected far more in dollars from the IRS than they paid in federal income taxes for each year in the period of 2005-2010, the total six-year net benefit amounting to about $7.3 billion. http://www.cis.org/child-tax-credits-2011

[ILLMAS]

I have a customer that wants me to do is payroll, which includes TAXES. I discovered one worker has a ITIN. He is not in the country legally. The IRS (the TAXing athority) say employeed must have SS# and not ITINS

Summary: The July 7, 2011, report of the Treasury Inspector General for Tax Administration provides summary data from IRS tax returns that show illegal immigrants collected far more in dollars from the IRS than they paid in federal income taxes for each year in the period of 2005-2010, the total six-year net benefit amounting to about $7.3 billion. http://www.cis.org/child-tax-credits-2011

Well share your opinion and how you feel about illegals with your client, simple as that. He might not feel the way you think about illegals or you can just simply tell your client on how an ITIN works.

[mrichman333]

It is just NUTS!

From the IRS

If you hire employees there is information that you need to secure for your records and forms that you must complete.

Eligibility to Work in the United States

Employee's Social Security Number (SSN)

employee's Withholding

Do not accept an ITIN in place of an SSN for employee identification or for work. An ITIN is only available to resident and nonresident aliens who are not eligible for U.S. employment and need identification for other tax purposes.

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Hiring-Employees

[Pacun]

There are many reports stating that EIC is abused each year... what do you do about that? Do you refuse to prepare returns with EIC?

[mrichman333]

Well share your opinion and how you feel about illegals with your client, simple as that. He might not feel the way you think about illegals or you can just simply tell your client on how an ITIN works.

He is the biggest racist I ever met, uses the N word every other word calls the mexicans N, and arabs Sand N.

And I was just trying to figure out what the heck the IRS was thinking, what was their logic? Really, give them a ITIN so they can pay taxes on the money they make for working ilegally, but keep it ileagl to hire them.. Hu

[bertrans]

I had a client once (a favour for a friend): he 'dropped off' his return and W-2. He had an ITIN, but the W-2 had an SSN - and a different name. The client had attached a yellow postit note to the W-2, with an arrow demurely pointing to the SSN, and the words: 'FOR WORK PURPOSE ONLY.' God bless this country.

PS: I did not prepare the return.

[TaxMan60601]

"I had a client once (a favour for a friend): ...." no way!!

no comment.

Generally agree with mrichman333.

What if you submit 1099-misc (or even better 1042-S with income code 50 ), tax him at backup tax, and voila`.

Or ask for w-9 ....

Just thinking of ...

[kcjenkins]

Yep, if we are not going to deport them, and clearly we are not, then set up a WORKABLE guest-worker program so that both the employer and the worker can comply with the law, and the tax system can properly function. And tax preparers do not get put in the position of either refusing their business or knowinly violating some laws in trying to comply with tax laws. If we are doing the payroll work for a business that employs illeagles , we end up in a no win situation. Or if a potental client comes in like the one Bertrans mentions, even if we refuse to do the return we are still closing our eys to a crime. But we have to, since we are not supposed to use knowledge from tax work for any other purpose, right? And most of us don't want to be ICE agents, either.

[ILLMAS]

This guy for president enough said and thank you very much.

http://youtube.com/watch?v=2utsjsWOWUA

[mrichman333]

"I had a client once (a favour for a friend): ...." no way!!

no comment.

Generally agree with mrichman333.

What if you submit 1099-misc (or even better 1042-S with income code 50 ), tax him at backup tax, and voila`.

Or ask for w-9 ....

Just thinking of ...

Did a 1099 for this year. But if he keeps doing that the IRS will eventually realize he is an employee and not a independent contractor.

[mrichman333]

Yep, if we are not going to deport them, and clearly we are not, then set up a WORKABLE guest-worker program so that both the employer and the worker can comply with the law, and the tax system can properly function. And tax preparers do not get put in the position of either refusing their business or knowinly violating some laws in trying to comply with tax laws. If we are doing the payroll work for a business that employs illeagles , we end up in a no win situation. Or if a potental client comes in like the one Bertrans mentions, even if we refuse to do the return we are still closing our eys to a crime. But we have to, since we are not supposed to use knowledge from tax work for any other purpose, right? And most of us don't want to be ICE agents, either.

Very Well Stated

[mrichman333]

This guy for president enough said and thank you very much.

http://youtube.com/watch?v=2utsjsWOWUA

This is true and not only in America; Australia did the same to the aborigines and New Zealand

To the Maori…..

But that was hundreds of years ago and none us today were a party to it any

More than we were a party to slavery.

The truth is the country is broke and there are not enough jobs for the people

Who are already here.

And we can’t just let anyone who wants to walk across the border. They could

be just hard working people or they could be child molesters. If we don’t have

control of our border we will have chaos.

If we allowed everyone who wanted to come here, to come. How many people do you suppose that would be?

Most of Central/South America? Most of Africa? ………

And what about people overseas? They can’t walk in, is it fair Central and South Americans

Should be able to jump in front of them?

I have a friend in Kenya that has been trying for over 10 years to come for a visit.