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Explain this, if you can!

Explain this, if you can!

Ratings: (0)|Views: 42|Likes:
Published by Sherwin Steffin
Federal law says it is illegal to employ illegal immigrants, but the IRS makes it possible for them to have their payroll processed by their employer. Anyone want to try and resolve the paradox?
Federal law says it is illegal to employ illegal immigrants, but the IRS makes it possible for them to have their payroll processed by their employer. Anyone want to try and resolve the paradox?

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Published by: Sherwin Steffin on Dec 07, 2007
Copyright:Attribution Non-commercial


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It’s illegal to employ Aliens….
Sanctions for Employment of Illegals
http://apmp.berkeley.edu/images/stories/LawsandAgencies/irca.emplsanctions.crs.pdf The Department of Homeland Security, U.S. Immigration and Customs Enforcement(ICE) is authorized to conduct investigations to determine whether employers haveviolated the prohibitions against knowingly employing unauthorized aliens andfailing to properly complete, present or retain Employment Eligibility Verificationforms (Form I-9) for newly hired individuals. Any person or entity may file a signedcomplaint alleging a violation of INA § 274(A) with the ICE office having jurisdictionover the business or residence of the alleged violator.The complaint must contain specific information as to both the complainant and thepotential violator and detailed factual allegations including the date, time and placeof the alleged violations or conduct alleged to constitute a violation of the act. ICEmay conduct an investigation for violations on its own initiative or as a result ofhaving received a complaint. If ICE determines after an investigation that there hasbeen a violation, ICE may issue and serve a Notice of Intent to Fine
or a WarningNotice.
Employers who fail to properly complete, retain,
and/or present FormsI-9 for inspection as required by law may be subject to a civil penaltyfor violations ranging from $110 - $1,100 per employee whose Form I-9 is not properly completed, retained, and/or presented
Factorsconsidered in setting the fine level are the size of the business, the employer’s goodfaith, the severity of the violation, and the employer’s history.
Also, the Attorney General can bring a district court action seeking equitable relief(i.e., permanent injunction, etc.). For a violation of INA § 274A(a)(1)(A) or (a)(2), anemployer can face: (1) $275 - $2200 fine for each unauthorized individual;
(2)$2,200 - $5,500 for each employee if the employer has previously been inviolation;
(3) $3,300-$11,000 for each individual if the employer was subject tomore than one cease and desist order.
Under INA § 274A(f), employers convictedof having engaged in a pattern or practice of knowingly hiring unauthorized aliens orcontinuing to employ aliens knowing that they are or have become unauthorized towork in the United States, after November 6, 1986, (e.g. expiration of workauthorization), may be fined up to $3,000 per unauthorized employee and/or faceup to six months of imprisonment.
…Or Is It???
How to Pay Undocumented Aliens With Wage Claims
While an undocumented alien generally cannot recover front pay in employmentlitigation,
anyone, documented or not, is generally entitled to recoverwages due for actual labor performed, even if they laborer lacked therequisite papers for lawful employment.
Employers who discover that theyowe wages to undocumented aliens often do not know how to process the payroll
without a valid social security number. There is, however, a way to do it. Theemployee needs to obtain an individual taxpayer identification numbers (ITIN).
Since May 29, 1996, the IRS has assigned ITINs to aliens who areotherwise ineligible for SSNs but who need taxpayer identificationnumbers for tax purposes. 61 Fed. Reg. 26,788. A valid ITIN is a nine-digit number, like a social security number or any taxpayeridentification number, and always begins with a 9. An ITIN is a taxprocessing number for both resident and nonresident aliens, as wellas their spouses and dependents
. It can be used only for income tax purposes.It does not entitle them to social security benefits or the earned income tax credit. Itdoes not create any inferences regarding their immigration status. It bestows uponthem no right to work in the U.S. Aliens must apply for an ITIN onIRS Form W-7(
 Application for IRS Individual Taxpayer Identification Number 
).IRS Tax Topic 857.The application must show a federal tax purpose for seeking the ITIN. In most cases,this will require attaching a federal tax return to the most current revision of theForm W–7 available. Along with the completed Form W-7, they will submit identitydocuments, and either a federal tax return, or other documentation to show thefederal tax purpose for which they need the ITIN.The identity documents are needed to verify both identity and foreign status; onemust include a recent photograph. If one submits an original valid passport (or anotarized or certified copy of a valid passport) there is no need to submit any otherdocuments. If one does not submit a passport document, one must provide acombination of documents (at least two or more) that are current and that (1) verifyidentity (that is, contains a name and a photograph), and (2) support your claim offoreign status.If the ITIN is for a dependent, the documentation must prove that the dependentlives in the United States, Mexico, Canada, Japan, The Republic of Korea, and India.If the dependent is a minor, the documentation must establish the relationshipbetween the dependent and the representative signing the application on thedependent's behalf. Such documentation could include a birth certificate, adoptionpapers, or other court-appointed papers showing legal guardianship.In addition to a passport, examples of acceptable documentation include: nationalidentification card (showing photo, name, current address, date of birth andexpiration date); civil birth certificate; foreign driver's license; or visa. A complete listof acceptable documentation can be found in the instructions to the Form W-7. Thedocuments must be originals or certified copies.Aliens can apply for an ITIN by mail or in person at most IRS offices in the UnitedStates. If they apply in person, the documents will be reviewed and returned tothem.Publication 1915,
Understanding Your IRS Individual Taxpayer IdentificationNumber 
, has a list of IRS offices abroad which can accept Form W–7. If applying bymail, use the address shown in the Form W–7 instructions and in Publication 1915.If the original documents have not been returned within 60 days, call 1–800–829–1040 (in the United States), or 1–215–516–2000 (outside the United States), tofind out about the status. It takes approximately 4 to 6 weeks for the IRS to notifythe application in writing of his or her ITIN. For more information, refer to

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