illegals, tax fraud, kids

Captain Morgan · 05-04-2012, 08:28 AM

And they are correct that it's near impossible to get the money back. Another thing that occurs is some of the ITIN workers will get paid on a 1099 so no taxes are withheld at all, or even on a W-2 and claim so many exemptions taxes don't get withheld, then they never file a tax return. By the time the case gets to the field collector, the person can't be located. Businesses get to deduct the money paid to these workers so that money is never taxed at any level. There's also another issue where they'll buy SSNs and file fraudulent returns under someone else's SSN and get a huge refund. You end up locating the actual SSN holder and can't collect because it was a fraud issue. Worst scenario is if the actual SSN holder doesn't respond, then their pay and bank accounts get levied to get the money back and it's a big mess trying to get that reversed in a fraudulent situation.

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05-04-2012, 08:28 AM	#2
Captain Morgan Let's do another U-turn Join Date: Feb 2008 Location: Indiana Moto: 2009 V-Strom Posts: 3,816	And they are correct that it's near impossible to get the money back. Another thing that occurs is some of the ITIN workers will get paid on a 1099 so no taxes are withheld at all, or even on a W-2 and claim so many exemptions taxes don't get withheld, then they never file a tax return. By the time the case gets to the field collector, the person can't be located. Businesses get to deduct the money paid to these workers so that money is never taxed at any level. There's also another issue where they'll buy SSNs and file fraudulent returns under someone else's SSN and get a huge refund. You end up locating the actual SSN holder and can't collect because it was a fraud issue. Worst scenario is if the actual SSN holder doesn't respond, then their pay and bank accounts get levied to get the money back and it's a big mess trying to get that reversed in a fraudulent situation.