Yes, many illegal aliens file tax returns but please don't believe the
enabler's official line that they "pay" taxes. Most typically have zero
taxable income and get much more in a tax refund than most American
taxpayers because they have learned how to game the system.
Despite the ITIN program, most illegal aliens WILL NOT file for an ITIN
because they aleady know that this makes them ineligible for a huge tax
refund.
Most illegal aliens will use stolen SSNs, that is, valid SSNs that
actually belong to a real taxpayer or person. They will typically file
electronically and do so as soon as possible in order to file before
the real taxpayer files their tax return.
The reason is that the illegal alien will then be "eligible" for
receiving a (fraudulent) tax refund that mainly consists of the earned
income tax credit (EITC) and sometimes the additional child tax credit
(CTC).
The incentive to do this is huge since the refund amount is typically
over $4,000. Since they are often married, and the wife will also file
a separate tax return using a fake SSN, then they end up getting over
$8,000 for simply submitting a bunch of papers.
Also, these illegal aliens typically have more than the two children
needed to max out the EITC so they typically will sell the unused
children's SSNs to friends, other family members or anyone else so that
they also can file fraudulent returns and get huge EITC tax refunds.
Do they get caught? Many do, but the vast majority don't. There are
just too many of them filing fraudulent tax returns for the IRS, for
many reasons, to catch them all. Also, if they do get caught, they just
get another SSN and use that to file.
As for the issue of the self-employment tax, it doesn't matter if they
are eligible for SS benefits. Most of them are getting government
benefits now via the fraudulent EITC refunds. Also, any self-employment
tax shown as due on their tax return is more often than not fully paid
by the EITC and the CTC, refundable credits that are just government
handouts that come from real American taxpayers paying their income
taxes, so any statements that illegal aliens pay taxes is largely a
myth.
Rudy
www.LizcanoTaxServicesLLC.com