So please explain how an illegal can pay state or federal income tax when they do not have a SSN or TIN?
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A lot of the wages for illegals are handled as cash under the table – Cash = not track-able. Note that I highlighted income which is not the same as sales tax.
Actually, a lot of illegals are paid using stolen SSNs these days. From what I’ve read, probably more than are paid the old way via cash under the table. They’re paying the taxes — they’ll just never see any benefits.[/quote]
Is there anyway to validate this statement?
BTW, where do they get the stolen SSNs? Identity theft? Do they also open credit cards with those SSNs too?[/quote]
They “buy” the SSN on the black market. This is a huge enterprise in Los Angeles County. Often they are decedents’ or a minor’s SSN. The “manufactured” Social Security cards looked pretty good. I once knew an accountant in National City (Filipina). Yes, she really had an accounting degree and was the “controller” for a small biz there of about 40 employees. Her visa had run out and she was using a decedent’s SSN so she could continue to be employed in the US. Her employer didn’t realize it. She had a six-year old child in San Diego that she didn’t want to leave behind. The father was local but married to someone else and his spouse didn’t know about the child.
How do I know all this? I represented a her as an FHA buyer on a NC house. After I opened escrow, she got the “Statement of Information” from the title company to fill out and a mountain of other forms to fill out for her FHA loan. She looked them over, panicked, got cold feet, promptly backed out of the deal and told me she decided to keep renting until she could put down 20% or pay cash for a property.
Aside from this minor problem, she was otherwise a little overqualified for the modest house she was in escrow to buy :=0
