Statutes of Liberty: Tax Law and the Undocumented — You Don’t Get What You Pay For – ARLnow

This sponsored column is by James Montana, Esq., Doran Shemin, Esq. and Laura Lorenzo, Esq., practicing attorneys atSteelyard LLC, an immigration-focused law firm located in Arlington, Virginia. The legal information given here is general in nature. If you want legal advice,contact Jamesfor an appointment.

Tax Law and the Undocumented was one of the less-popular choices on our glorious Readerpalooza poll, but its tax time, and we want to make sure this information is out there, because someone really needs it. (Our motto here at Statutes of Liberty is Decreasing Needless Suffering: Its Taking Longer Than We Thought.)

So, its time for a Q&A between our imaginary interviewer, Cosell, and our non-imaginary founding partner.

Cosell: Lets cut to the chase. Do illegal immigrants undocumented people, what-have-you do they have to pay taxes?

Montana: Yes. Paying taxes on U.S. income is required under federal law whether you are here legally or illegally.

Cosell: But they dont have Social Security numbers, do they?

Montana: Some of them do. Immigration is complicated. (Until 1974, you didnt have to submit any evidence at all to get an SSN you just asked for one. See here.)

Cosell: OK, wise guy, but how do you pay your taxes without a Social Security number?

Montana: The IRS will issue you something called an Individual Taxpayer ID Number (ITIN), which serves as a substitute for an SSN. An Individual Taxpayer ID Number allows the IRS to keep track of you from year to year.

Cosell: But come on. It would be stupid to tell the federal government your address and name if youre living illegally in this country. Why on earth would anyone do that?

Montana: Many of our clients genuinely want to pay taxes. They see it as part of being responsible residents in this country. Also again, immigration is complicated! there are lots of families with mixed status. For example, Dad has TPS, Mom is undocumented, one kid is undocumented and the two younger kids were born here. In that family, there are three legitimate Social Security numbers and two ITINs. Dads employer will withhold his income, and hell want to file a tax return.

Cosell: But wont the IRS report you to ICE?

Montana: There are plenty of people who fear that, but federal law generally forbids the disclosure of tax information for immigration purposes. This is a contested area of law, but our view is that people should pay their taxes. First of all, its the right thing to do. Second, paying your taxes is useful evidence of physical presence and compliance with U.S. law, which your immigration lawyer will love to see.

Cosell: So, lets say Im undocumented. Should I have my cousins friend prepare my taxes? I hear hes super good at it always gets the best refund!

Montana: God, we get this all the time. NO NO NO NO.

Cosell: Why not?

Montana: Because your cousins friend is an idiot. He will, without fail, (1) claim incorrect numbers of dependents, (2) write down that you are head of household when you arent, (3) put down his address rather than yours just to keep things simple and generally make a dogs breakfast of the whole thing.

Please go to a licensed tax preparer or a CPA. Free tax preparation is available right here in Arlington from Enterprise Development Group (EDG). If you live in D.C. or suburban Maryland, check out the Catholic Charities Financial Stability Network. If neither of those works for you, go to a physical H&R Block office. H&R Block takes more of your refund than a free preparer would, but theyre still better than the alternative.

Cosell: Whats your favorite unlicensed tax preparer story?

Montana: There are so many. My personal fave is Kenneth Mwase, whose unlicensed tax business not only fleeced clients out of their refunds but also (allegedly) drove them to ATMs to demand more money. After his conviction, he fled to South Africa using a bogus Zimbabwean passport. It took an international manhunt to find him. Why would you pay for that kind of service when you can get actual, sane tax advice for free from a kindly retired accountant?

The rest is here:
Statutes of Liberty: Tax Law and the Undocumented -- You Don't Get What You Pay For - ARLnow

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