I was surprised by the answer -- many do, according to this AP story reported on MSNBC. But how?
Tuesday is Tax Day, when millions of illegal immigrants find themselves collaborating with one federal agency - the Internal Revenue Service - while trying to avoid another - Immigration and Customs Enforcement.***The IRS created a nine-digit Individual Tax Identification Number in 1996 for foreigners who don't have Social Security numbers but need to file taxes in the U.S. But it is increasingly used by undocumented workers to file taxes, apply for credit, get bank accounts or even buy a home.
The IRS issued 1.5 million ITINs in 2006 - a 30 percent increase from the previous year. All told, the tax liability of ITIN filers between 1996 and 2003 was $50 billion. The agency has no way to track how many were immigrants, but it's widely believed most people using ITINS are in the United States illegally.
One number hints at the number of illegal immigrants having income taxes deducted from their paychecks.In 2004, the IRS got 7.9 million W-2s with names that didn't match a Social Security Number. More than half were from California, Texas, Florida and Illinois, states with large immigrant populations, leading experts to believe they likely represent the wages of illegal immigrants. Even immigrants who use ITINs to file taxes are forced to make up a Social Security Number when they get a job.
The IRS does not share immigrants' personal information with ICE or any other agency.
ITINs also have another purpose:
Many banks now allow illegal immigrants to open an account with their ITIN, and Bank of America has a pilot program in Los Angeles that allows customers to use the numbers to sign up for a credit card. Others have created mortgage products for ITIN-bearing immigrants, including Citibank, which offers one in partnership with ACORN Housing Corp.
We certainly do have an interesting immigration system in this country.
One of the big complaints is that illegals don't pay taxes yet take advantage of the system. This somewhat negates that argument. And unfortunately will make it even more difficult to come up with a satisfactory immigration policy.
(My personal views are those found in Lennon's "Imagine.")
What a mess and what this says, regardless of where you stand on this issue, to me the message is employers can do whatever they want, pay cash under the table, not follow the laws, avoid workman's comp, whatever and there will be no consequence.