Secret IRS policy hides identity theft from victims
http://www.wthr.com/article/secret-irs-policy-hides-identity-theft-victims
Everyone who meets minimum income thresholds in the US is required to file a tax return with the IRS.
For undocumented workers – who are also required to submit a tax return despite their illegal immigration status – it means using an individual taxpayer identification number, better known as an ITIN. It is a government-issued ID number granted to undocumented immigrants specifically for tax purposes, and it allows them to not only file taxes, but also to get tax refunds and certain tax credits.
But an ITIN cannot be used to get a job, and undocumented workers cannot legally get a Social Security number which most companies require for employment. Facing that dilemma, many undocumented immigrants figure out how to get a Social Security number anyway -- a number that does not belong to them – simply to get work.
The ID numbers submitted to the IRS – both an ITIN and a Social Security number -- clearly don't match. In fact, the IRS has an official name for that: an ITIN/SSN mismatch. It's a huge warning sign for identity theft.
But amazingly, the IRS accepts millions of ITIN/SSN mismatch tax returns anyway.
The agency actually encourages undocumented immigrants to file with a mismatched Social Security number that does not legally belong to them. The IRS website instructs tax preparers that undocumented workers can and should include on their tax returns any income they’ve earned using a Social Security number -- even though the IRS admits non-resident aliens are not legally eligible to receive a Social Security number in the first place!
So what does the IRS do with that information? What action does the agency take when it learns someone else used your Social Security number to get work and earn a paycheck?
"We're not allowed to say anything. Not a word," explained an IRS whistleblower.
"You were told to ignore it?" I asked, making sure I heard correctly.
"Yes. Identity theft is a crime. It affects real people in a lot of ways. But we are not supposed to do anything. Just let it go," she said. "I talk to these people every day who don't understand exactly what happened to them, and it's heartbreaking."