April 2007


[KR: Very interesting story in the NYT today about a surge in tax filings by unauthorized immigrants--which creates a paper trail for potential legalization applications but also ITIN numbers for identification purposes.  Ironic that some conservative advocates don't like having the IRS and Homeland Security systems kept separate, even though it would likely mean a dramatic drop in revenues--although presumably it would also mean a drop in tax refunds]

One client, she said, was a Mexican man who lugged in a suitcase holding $14,000, cash he had set aside to pay his taxes over six years of work as a landscaper. Like many, he had only recently learned that he could file a legitimate tax return, said Ms. Borthayre, who is the author of several books on tax preparation with ITINs.

Like Social Security numbers, individual taxpayer numbers have nine digits, but all begin with a “9.” The appeal of the numbers grew as they were accepted in some places as alternative identification to open a bank account, qualify for credit or even obtain a driver’s license — all uses that the I.R.S. opposed and has tried to curb, Ms. Mathis said.

Since 2003, applications for an ITIN must be accompanied by a tax return, with few exceptions. And to avoid confusion with a Social Security card, the I.R.S. now sends a letter assigning a number, instead of a card.

Full story here: http://www.nytimes.com/2007/04/16/nyregion/16immig.html