 SAN
FRANCISCO, APR 14 –Many undocumented immigrants see paying
taxes as a catch-22 -- they need to file income tax returns
if they are ever going to qualify for legalization, but they
believe filing taxes may expose them to deportation.
This fear is unfounded and represents one of the many myths
surrounding undocumented immigrants and taxes, according to
Robert Alcorn, a Certified Public Accountant in Dallas,
Texas, who works closely with immigrants and immigration
lawyers.
The IRS cannot disclose tax information to other parties,
including other governmental agencies, according to Alcorn.
This doesn’t mean other governmental agencies wouldn’t like
to get their hands on this information.
Since 9/11, as immigration agents have carried out more
raids, the Department of Homeland Security (DHS) and
Immigration and Customs Enforcement (ICE) have pressured the
IRS to turn over their records. But the IRS refuses because
it is against the law (IRS Code 6103) for the IRS to turn
over your tax information.
In fact, in a recent speech to the National Press Club, IRS
Commissioner Mark Everson put it this way: “We want your
money whether you are here legally or not and whether you
earned it legally or not.”
Undocumented immigrants are already paying taxes in the form
of sales, gas and excise taxes, every time they make a
purchase, according to Jean Ross, director of the California
Budget Project. A smaller number of them pay income taxes.
But all undocumented immigrants should be filing income
taxes, says Alcorn. These are his top 10 reasons why:
1) It's the Law
Once an immigrant (documented or otherwise) has been in the
United States for six months, the U.S. tax law applies to
that immigrant just as it does to citizens. Tax returns
don’t distinguish between documented and undocumented. The
IRS couldn't care less whether you’re here legally or
illegally; if you’re earning an income, it wants you to pay
taxes.
2) Proof of Presence
Tax returns are proof that you have been in the United
States for a certain period of time. This proof may be
required in deportation cases, or under any new immigration
bill that provides a path to legalization for those who have
been in the country since a certain year.
3) Proof of Spouse's Presence and/or Spousal Relationship
Tax returns can support an immigrant’s claim of his marital
status (single, head of household, married), which could
improve a spouse’s eligibility for future legalization.
4) Proof of Dependents' Presence and/or Relationship
Tax returns also document dependents of the immigrant
(spouse, children, elderly parents, etc.)
5) Proof of Income and Self-Sufficiency
Tax returns reveal your income level and your ability to
support yourself and your family in the United States.
6) Possible Eligibility for Tax Benefits/Credits
Filing tax returns allows you to receive certain tax
benefits if you qualify, such as the Child Tax Credit,
including the refundable portion of the Additional Child Tax
Credit if you qualify and the Earned Income Credit in some
circumstances.
7) Obtaining an (ITIN) Individual Taxpayer Identification
Number
Filing tax returns provides a legitimate basis for obtaining
an Individual Taxpayer Identification Number. This is
preferable to using a fake Social Security number, which is
illegal, and could lead to identity theft charges.
8) Proof of Income as Basis for a Mortgage and Other
Credit
Tax returns can be used to obtain mortgages, auto loans,
credit cards, education loans, etc. Undocumented immigrants
who don’t have social security numbers can buy houses
legally using their ITIN.
9) Demonstration of Good Moral Character
In many types of immigration cases, “good moral character”
becomes an issue and filing tax returns is one form of
proving good moral character.
10) It’s Good to be Prepared, Just in Case
While there is currently no final new legislation on
immigration, several of the proposals discuss proving that
an immigrant has been in the United States for a certain
number of years and has filed tax returns. Being current
with tax returns, aside from the other benefits listed
above, may come in handy if a new immigration bill emerges.
(Source: New America Media, News Report, Elena Shore,
Posted: Apr 14, 2007) |
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