Many undocumented immigrants had hoped that the Obama administration would pass an immigration reform bill that would permit them to attain legal status.
Advocates of immigration reform also relied on the federal government displaying benevolence toward those illegal immigrants who worked and paid taxes during their residence in the United States. It's no wonder that the number of applications for Individual Tax Identification Numbers (ITIN) coming into the Internal Revenue Service (IRS) has risen steadily since the program's founding over 10 years ago.
Remember, this program was introduced in 1996. Of course, it wasn't created for undocumented immigrants, but for people who are in the country legally but who don't have social security numbers. The opportunity to report one's income was provided to everyone; however, subsequent developments showed that the program was especially popular among undocumented immigrants. According to the IRS, in 2006, 1.5 million non-citizens paid their taxes through the ITIN program – almost half of them were undocumented. In 2007, these numbers held steady.
Based on IRS statistics, the popularity of the ITIN program is evident. From 1996 to 2010, a total of 14 million ITINs have been assigned. The program went from 60,683 foreigners during its first year to over 1.5 million in 2006.
Or so it was. As efforts made by proponents of immigration reform fall short, interest in ITINs has waned. According to the IRS, the number of participants in the ITIN program dropped 10 percent in the last two years; consequently, the federal treasury and local governments find themselves coming up short by a not-insignificant amount of tax dollars. This is in addition to the fact that many Americans have long been struggling with chronic debt – the sum of the arrears owed to the federal treasury on a yearly basis is over a $100 billion. Which is to say that the tax money collected from undocumented immigrants is certainly not superfluous, especially during the "Great Recession" and given our current issues with federal deficit.
"People had hoped that by paying their taxes they could demonstrate their loyalty to America, which would result in a the implementation of a much desired residence policy," said Jose Lopez, a tax-expert from New Jersey company H&R Block, in an interview with the website latino.foxnews.com. "What resulted was a disappointment."
It is important to note that it is not that undocumented immigrants' hopes were short-lived, but rather separate proposals related to immigration reform that associated green card distribution to paying taxes.
"Having spoken to my colleagues in other lines of business, who like myself helped immigrants apply for ITINs, and to representatives of immigrant organizations, I am convinced of the disappointment felt by immigrants. In 2010, compared to 2009, the number of individuals seeking to obtain ITINs fell by 20 percent," said Lopez.
According to the IRS, 3.5 million people paid their taxes through the ITIN program in 2009, a drop from 3.8 million in 2008 and 3.9 million in 2007.
Last year, the IRS assigned 1.6 million ITINs, less than in 2009, when 1.8 million were assigned. It is understood that far from everyone in our country is concerned about the IRS's account of the contraction of the ITIN program. From the moment of its appearance, the program was a "red flag" for opponents of mass immigration and organizations that demand the arrest and deportation of undocumented immigrants. According to them, the availability of ITINs allows foreigners living in this country illegally to feel quite comfortable. An ITIN allows an individual not only to pay taxes, but to open a bank account and receive a loan for the acquisition of real estate. That is, to live exactly like law-abiding citizens.
"The mere availability of this program makes a mockery of common sense," says Marti Dinerstein, president of one of the anti-immigration organizations based in New York, "The IRS knows that illegal immigrants actively make use of the ITIN program. On the one hand, the government fights for the observance of the law. On the other hand, it encourages transgressions."
Both opponents and supporters of Dinerstein's views have presented persuasive arguments regarding the ITIN program. The fact that millions of immigrants use ITINs to pay their income taxes indicates they are not looking for a free ride for their use of government services. In addition, undocumented immigrants pay sales tax, excise tax, and if they have real estate, real estate taxes. Another argument put forward by advocates of undocumented immigrants is that, every year, they pay billions of dollars into the funds for Social Security and Medicaid without making use of the benefits of these programs.
None of this discourages those who believe that the only solution to the issues regarding illegal immigrants is deportation from the country. "All talk of the uses of the ITIN program is a liberal masquerade," protests Dan Stein, president of the Federation for American Immigration Reform, an organization that supports the toughening of police measures against immigrants without resident or citizen status. "I believe it is barbaric that the IRS would virtually indulge people who break the law. We insist that the IRS give any information regarding undocumented immigrants over to the immigration authorities."
The IRS has calmly responded to criticism from opponents of mass immigration. In 2006, during a hearing before Congress on the subject of the U.S. tax service, former IRS Commissioner Mark Emerson said, "Our job is to make sure that everyone who earns money in the U.S.A. pays their taxes. If someone receives a payment without the right to work in our country, it doesn't mean that that person is not expected to pay taxes. Lacking a Social Security Number, undocumented immigrants can report their earnings by using an Individual Taxpayer Identification Number."
During the hearing, Emerson cited a number that surprised many; from the moment the ITIN program was founded, those who received ITINs paid a total of $50 billion in taxes.
IRS employees are forbidden from sharing information regarding their clients with other government agencies, including immigration authorities. During the congressional hearing, it was acknowledged that ITINs could be used for other things besides paying taxes. However, the advantages of the program outweigh the drawbacks, which explain why the current IRS administration rejects demands for tax officials to fill out police forms in addition to tax forms.
There are other federal agencies that work with illegal immigrants under terms of strict confidentiality. For example, both the federal and state labor departments habitually engage with undocumented immigrants to discuss exploitation by their employers (for example, for the refusal to pay for work that has already been done). The Selective Service invites all men between the ages of 18 and 26, including undocumented immigrants, to register.
According to Stein, "The United States federal government is clearly demonstrating its schizophrenia."
In a free country, all are within their rights to express their beliefs. However, in my opinion, the growing demand to end the ITIN program based on concerns regarding undocumented immigrants, which would deprive the treasury of billions of dollars in income tax, is absurd. Deporting from 12 to 20 million undocumented immigrants would not only result in failure, but would result in a substantial loss of government finances.
Several years ago, the IRS agreed to enact corrections to the practices of ITIN distribution. If previously you could acquire an ITIN without restrictions, today, before filling out the form for an ITIN (form W-7), one must attach a copy of one's tax return in order to confirm that the document in question is necessary for paying taxes.
Undocumented immigrants who fill out their tax returns using an ITIN have a right to reimbursements, but, experts explain, the sum received will be significantly lower than that of an average tax-payer.
