City Helps Undocumented Immigrants Pay Taxes

by Melissa Bailey | January 29, 2007 8:22 AM | | Comments (11)

IMG_7073.JPGSherena Palmer (pictured), an 18-year-old housekeeper who just moved to New Haven from Jamaica, waited in line at the public library to get free help filing her first U.S. tax form. In a bold move, the city’s low-income tax assistance program is reaching out not only to legal residents like Palmer, but to undocumented immigrants, too.

The city announced Monday that the city-backed Volunteer Income Tax Assistance program (VITA), which gives free tax filing help to low- and moderate-income people, will expand its services to include undocumented workers who do not have social security numbers.

Internal Revenue Services, which oversee the VITA program, canceled a scheduled appearance at the press conference in the basement of the city library’s main branch, where Mayor John DeStefano, Jr. made the announcement.

But DeStefano wanted the news in the open: VITA has expanded so that people who don’t have a social security card or U.S. citizenship can get free help filing their taxes, including a possible tax refund.

The city’s popular tax assistance program, formed by this public-private coalition, helped 773 New Haven residents claim $1.8 million in refunds and tax credits last year, and hopes to expand its volunteer base to serve 1,000 this year, according to City Hall.

VITA added another feature: Low-income people can sign up for an IDA (individual development account), where each dollar they save will by matched by two dollars from Empower New Haven.

Click on the play arrow to watch highlights of the press conference videotaped by Empower New Haven’s Tom Ficklin.

The Aspiring Citizen Tax

Why would undocumented immigrants volunteer to file taxes, especially when they don’t qualify for social security benefits or the federal Earned Income Tax Credit, a tax break for the working poor?

Many already pay taxes and might hope for a tax refund.

Others are “hoping that in some point in time” the U.S. would pass a law granting citizenship to undocumented immigrants who’ve been living here for a certain number of years. Tax receipts would not only prove residency but also strengthen their case for citizenship, explained City Hall’s new immigrant policy guru and mayoral staffer, Kica Matos.

The program’s expansion to include the undocumented follows in the vein of the city’s new immigrant protection policy, which allows immigrants to call police without fear of deportation.

IMG_7068.JPG“If you’re a member of the community, you’re working in the community, you’re enjoying the benefits of the community, and you should pay taxes in the community,” said DeStefano (pictured).

“We’re going to help folks do that, explain how they can do that, and not feel threatened that they’re somehow being turned into immigration as a result.”

Many undocumented workers already pay income tax by filing through an Individual Taxpayer Identification Number (ITIN), which is given without proof of U.S. citizenship. The program was created in 1998 to allow illegal immigrants to do just that, said Matos.

New Haven has shown strong participation in the ITIN program. In 2006, New Haven had the fifth highest number of ITIN users in the state, with 776 contributors, or 1.6 percent of the city’s taxpayers.

Not all of those ITIN-users are undocumented immigrants “” some may be foreign nationals, such as visiting professors at Yale. There’s no count on how many of the 776 contributors were undocumented workers.

But Matos and Laura Huizar of the Latino advocacy and social-service organization JUNTA for Progressive Action said there’s ample interest within the Latino community. Both will be reaching out to the undocumented to encourage VITA participation.

Can they be assured they won’t be deported? “There are no assurances,” replied Matos. An IRS (Internal Revenue Services) spokeswoman didn’t return a request for comment as to whether the IRS shares the ITIN list with the Department of Homeland Security, which handles immigration issues.

Matos said her research showed the IRS and homeland security office have been “reluctant” to get into each other’s business concerning ITIN participants. In the ITIN’s eight years of existence, only two instances have come up where ITIN filers ended up in trouble with immigration officials, Matos said.

Get Involved

In an effort to give more low-income families and workers the tax breaks they deserve, the city is boosting its volunteer forces for the VITA program. So far, 60 active volunteers have been recruited to work at the program’s 11 different sites throughout the city.

To volunteer your time, email here or call VITA at 946-8482. You can also call 946-8486 to schedule an appointment for tax help. E-filing begins Feb. 3.







Comments

Posted by: Joe | January 30, 2007 12:37 PM

The Mayor and his team deserve a lot of credit on this. This is a great way to keep building an ethic of immigrant tax-paying. It's also another nail in the coffin of the "free-loader" argument which so often rears its ugly head. Most data suggest that the majority of undocumented immigrants in the US are already paying taxes, and that those that don't are pretty much paying "defacto taxes" via the incredibly low wages they're willing to accept.

Posted by: BorderSentry | January 30, 2007 1:06 PM

It is a federal felony to aid and abet invaders or to do anything that would encourage or enable an invader to remain in the United States. It is illegal for invaders to work in the United States, and it is illegal to hire invaders. The feds ought to round up and deport the invaders mentioned in this article and charge city officials and anyone else who is enabling these invaders.

Posted by: North Carolinian | January 30, 2007 2:43 PM

I am VERY happy I do not live in New Haven.
It is deplorable that taxpayer dollars are going to aid and abet illegal aliens in this city.
There is a difference between "immigrant" and "illegal alien".

Posted by: Horace | January 30, 2007 3:01 PM

It is not up to the mayor to make judgements on the direction of future immigration legislation. It is up to the mayor to engage the spirit of the law, as well as the letter of the law with respect to the Code of Federal Regulations. I don't know the nature of the oath he took as mayor, but this position on assisting illegal aliens is hardly consistent with the principles of good government. Will someone remind him that his constituency consists of the citizens, and legal residents of New Haven, and not illegal aliens who are deportable. The City of New Haven is sanctioning illegal immigration and in effect granting sanctuary to these people. Time for a recall election or impeachment of the mayor for his poor judgement and ill conceived actions.

Posted by: THREEFIFTHS | January 30, 2007 4:00 PM

Is This The Same King John Who Ran For Governor And Ran A Commercial For His Campaign That Show His Father Who Was A New Haven Police Officer That
Believe In Up Holding The Laws?

Posted by: Joe | January 30, 2007 5:14 PM

How nice to see members of the anti-immigration blogosphere take such interest in the New Haven Independent. And what a nice vision of community you all have! I just can't imagine why we wouldn't take your advice and replace our diverse, interesting, tolerant, and strong vision of community with your lovely "hate thy neighbor" approach.

Posted by: Bobby | January 30, 2007 5:30 PM

The Mayor and his "Team" should immediately be arrested because as some of the posters have pointed out, they are in violation of the laws already on the books. Their actions are criminal.

Posted by: BorderSentry | January 31, 2007 11:53 AM

It would appear that Joe has confused "immigrants" (those who are here with permission) with illegal aliens, criminals by definition. I'm not sure about you, but I want my 'community' free of criminals and parasites.

Posted by: Cedar Hill Resident | January 31, 2007 3:16 PM

I will stand on a previous statement I once made. A lot of our ancestors that came to this great country were illegal immigrants you may think they were legal but there was a good chance they were not. It is just back in those days there record keeping was not as good as it is now. So I can not judge how people ended up here or why they came and risked what ever they had to, to be here. But if the mayor of this city can help them do there taxes then what is the problem with that?? And in a very smart way it helps with other things to. It shows there desire to be citizens and although they may have gotten here under the radar, they are willing to follow the rules and laws of the country since they arrived. We also now have a record of undocumented people that are living in the city which helps with our census records and federal moneys our city may be entitled to as well.

Posted by: Ned | January 31, 2007 4:43 PM

Immigrants, "legal" or otherwise, bring their labor, new ideas, languages and cultures to New Haven and make the city a more dynamic, cosmopolitan place. The mayor seems right to welcome them and to help them integrate into the life of the city. How much more personal initiative can one demonstrate than to relocate thousands of miles, to a new country, to find work? They're here now and I would rather they have a good experience than a hostile one. New Haven has a bad enough public relations problem without adding provincial jingoism to the mix.

Posted by: Senior Citizen | February 12, 2007 7:24 PM

On June 29, 2004, the U.S. Commissioner of Social Security and the director general of the Mexican Social Security Institute reached an agreement - the so-called Totalization Agreement. Yes, it took three years of wrangling with Freedom of Information Act by the TREA Senior Citizens League to obtain the document entitled “Social Security – Proposed Totalization Agreement with Mexico”.

The seniors group (TREA) knew that if illegal aliens get legal status -- through an amnesty or some sort of legalization plan such as the one the President and the Senate tried to enact 2006 last year -- it would allow illegal aliens, mostly from Mexico, to gain legal status and access to Social Security benefits for their relatives, children and other dependents.

What the agreement reveals is that the United States will permit illegal aliens from Mexico to collect Social Security benefits if they have as little as 18 months of U.S. employment history. In contrast, U.S. citizens must show 10 years -- 40 quarters -- of perfectly legal job history to collect same Social Security benefits.

Despite the fact that it's illegal for employers to knowingly hire individuals who are in this country illegally, the agreement which awaits the President’s signature, can take effect without Congress' approval. The current Democratic Congress doesn't have to vote to approve it -- it has only 60 days to disapprove it, which isn't likely because they likely support allowing the agreement to become law.

This agreement would drain more billions from a Social Security system that already lists a $14 trillion liability and assets of only $3.5 trillion, according to a 2003 report generated by the Center for Immigration Studies. And it's worth noting that virtually none of those $3.5 billion in "assets" consists of gold bars or even bundled greenbacks sitting in some government vault.

These so-called "Totalization" Agreements are common -- the United States has them with 20 other countries. Their goal is to avoid double taxation when employers assign employees to work temporarily in another country.

But, "Totalization” was not designed or intended to cover millions of illegal aliens sneaking past the southern U.S. Border Patrol from what is a borderline Third World country. The Pew Hispanic Center estimated that there are between 3.4 and 5.7 million unauthorized Mexican citizens in the United States and the Urban Institute has estimated that there are more than 4 million according to GAO-03-993 Social Security Report to Congressional Requesters.

The vast majority of individual tax returns are filed using a social Security Number (SSN) as identification. However, there are instances where alien individuals will file a U.S. tax return.

To enable these individuals to file, Treasury Regulations were issued in 1996 to provide them with Individual Taxpayer Identification Number (ITIN).

An ITIN is intended for tax purposes only and creates no inference regarding an alien individual’s right to live in the U.S. or be illegally employed here. A study done by the Inspector General’s Office of the Department of Treasury found that 55 percent of illegal aliens who filed income tax returns using tax identification numbers had no federal income tax liability, reflecting their income and large number of dependents.

An analysis of Forms 1040 filed in Tax year 2001 with ITINs found that approximately 530,000 Forms 1040 were filed with ITINs as the primary number by aliens with the number increasing each passing 5 years.

All American’s should be concerned about illegal aliens coming here and getting as good a better deal from our government “entitlement” programs with their U.S. Citizenship. In fact, they’re going to get a much better deal from this Congress.

This Totalization Agreemment and the ITINs that the illegal aliens are filing to get into the U.S. Social Security Benefits will effect my Social Security, my children's and grand-children's Social Security. Amen

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