Why did the IRS create what’s called an ITIN ?

Individual Taxpayer Identification Number (ITIN)

http://www.irs.gov/Individuals/Individual-Taxpayer...

General ITIN Information

http://www.irs.gov/Individuals/General-ITIN-Inform...

Who needs an ITIN?

IRS issues ITINs to foreign nationals and others who have federal tax reporting or filing requirements and do not qualify for SSNs. A non-resident alien individual not eligible for a SSN who is required to file a U.S. tax return only to claim a refund of tax under the provisions of a U.S. tax treaty needs an ITIN.

Other examples of individuals who need ITINs include:

Hope that you find the above enclosed information useful. 12/29/2012

An ITIN is necessary so that those without a social security number can meet their legal obligation to file tax returns.

I don't know where you are getting your numbers from, but they appear to be bogus. In a recent report by the IRS's inspector general, it was estimated that there were approximately 1.5 million tax returns with potentially fraudulent refunds totaling $5.2 billion in 2010.

The big problem is not illegal immigration but identity theft. Thieves steal the identities of legitimate tax payers and then send in fraudulent returns. While some of these thieves may be illegal immigrants, many more are US citizens. The ITIN does little to exacerbate this problem.

The ITIN was created for anyone who needed to file a tax return and was not eligible for a social security number. Not all of them are illegal immigrants.

Most of the tax returns filed by illegal immigrants are not fraudulent, because they don't want to get deported for filing a fraudulent return. Most fraudulent returns are filed by U.S. citizens.

The law requires anyone working in the U.S. and making more than a certain amount of money to file a tax return, whether or not the income is legal. It is not the choice of the illegal immigrant. The laws of the U.S. say that they must file.

And the laws also say that many of them are entitled to tax refunds.

"It is estimated that 2 million illegal immigrants are filing fraudulent tax returns "

Edit

I stand corrected.

But the fraud isn't in the illegal getting an ITIN, it's the issuing of ITINs for people (minors) not even in the USA. The original illegal who worked in this country should, according to the law, be able to file their tax return. This dates back to gangster Al Capone. He wasn't found guilty of murder, racketeering, etc, but of tax evasion. The IRS's stand is, regardless of the legality of the income (or your legal status as a resident) you must report (and pay tax on) all income. If you are due a refund, then you are entitled to it.

So, that part is moot. It is the fraud of getting ITINs for the children who have never set foot in the US that's the reall issue here.

You can thank the confusing and loop-hole ridden tax code written by our legislators for this.

Most illegals want to file tax returns and pay their tax because they do not want to be deported. Prior to the ITIN, they would use a false SSN which created a problem for the person to whom that SSN actually belonged to. The ITIN was created in order to allow aliens to file tax returns in order to report their income, as they are legally required to do so.

If you look at the big picture, tax fraud is way more common with legal US citizens holding SSN's...although illegal immigrants certainly are not immune.

You don't get refunds that you are not entitled to with an ITIN and you don't get benefits that you are entitled to if you are legal and have a Social Security Number. IRS is required to maintain confidentiality and having a Non-SSN as a tax ID number is how they do it. Some are issued to citizens of other countries with USA income and some go to illegal aliens who haven't stolen someone elses SSN.

Trust me, fraudulent tax returns are mostly filed with SSN not with ITINs, just because ITIN holders are not entitled to many of the credits US citizens and residents are. The biggest fraud is happening with Earned Income Credit (EIC) and foreign aliens (ITIN holders) are not entitled to it. So get your act together, and don't assume that each ITIN holder commits a fraud. ITIN is required for people who are not US residents or citizens to pay taxes in the United States, because they or their families earn income here.

those who do not fufill the requirements of an SSN are able to get the ITIN for purposes of employment and filing taxes, those are the only two uses for the ITIN

those tax returns with any ITIN are not eligible for EIC so your statement of them getting thousands in refunds doesn't hold water

think this is shocking, how about illegals who are getting SS who never paid into the system, something that started with Pres Carter, that to me is absolutely ludicrous

and now they are talking about reducing SS? when those of us who have worked over 40 years and paid into the system as well as employers matching? that someone who never worked in the US or paid into the system gets some of my money?