Finally the IRS corrected a flaw

[Pacun]

In the past, the IRS would give $1000 child tax credit and the other perks that come with an ITIN.  So, I know of places where they asked their clients to request passports from children living in Central America and put them as a dependent and request an ITIN. These tax preparers made extra money and they were busy all year long. So when I hear the famous phrase "they pay taxes" I laugh because I know that a bunch people only get money from the IRS. They never pay anything... BUT that's another subject.

Recently the IRS changed the ITIN rules and now when you apply for an ITIN, you need more than a passport if you don't have a visa on it. You need medical records for children under 5 and  for children above 4, you need to send school record and any other records that prove that the child is in the USA when you send form W-7 to the IRS, except for dependent living in Mexico or Canada or dependents of militaries. So if you apply for an ITIN, please send passport and proof that the child is here. For taxpayers, the W-2 is a good proof but for dependents, you better send something else.

 

[ILLMAS]

In the late 90's I amended a clients return that was referred to our office by an immigration attorney, they claimed EIC for a couple of years for nephews, cousins, and friends living in Guatemala (all had ITIN).  The total they had to return was around $25K, not including penalties and interest and they had no problem paying it back, my jaw drop when they came with cashier checks.

[Pacun]

I wouldn't be surprised that that was only a portion of what they got from the IRS doing the same thing every year. I doubt they amended every year. Most of the time they only amend the years needed for their immigration cases.