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IRS Toughens ITIN Application Requirements, Responding to Problems with Undocumented Workers

The Internal Revenue Service recently reported that it is making important interim changes to strengthen its procedures for issuing Individual Taxpayer Identification Numbers from now through the end of the year.

In an Accounting Today article by Michael Cohn the implication is very misleading; it gives the reader the impression that undocumented workers received $4.2 billion of fraudulent refunds due to lax ITIN internal controls. Although the need to review the ITIN program appears to be obvious, it is my opinion the writer took the easy way out by emphasizing the refunds and the undocumented worker connection instead of digging deeper into the entire program. For instance, there is no mention of the billion of dollars undocumented workers contribute to the various funds without any likelihood of ever receiving any current or future benefits.

The funds which are heavily subsidized by the invisible workforce of undocumented workers include (but are not limited to): Social Security Fund, Medicare, Federal and State Unemployment Funds and the various state disability funds.

The debate over immigration and undocumented workers will certainly continue through the fall election. Perhaps a healthy dialogue is exactly what is needed.

If you have any questions regarding Individual Taxpayer Identification Numbers please call or email Palma Financial Services. We are a full service accounting, financial planning and CPA firm in Dublin, CA.

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