tax id

What Is Wrong With The ITIN Number?

Despite the usefulness of an ITIN number within the US tax regime, concerns have been raised that it is somehow causing a security breach in the country. Political advocates, as well as the general public, have accused the government that the issuance of ITIN number has sparked several fraudulent activities in the country. The extent to which these accusations hold true is largely debatable; nonetheless, this issue has led to several debates and discussions on the political front.

Issuance of ITIN number is seen by many as granting legal cover to people for their illegal activities in the country. People are concerned about the threat to personal security that this might cause if it stays largely uncontrolled. The recent attempt by the government to streamline laws governing the ITIN number is considered to be an important move to uproot such allegations and ensure people about the usefulness of ITIN number.

This blog attempts to shed light on some of the problems that are considered inherent in the ITIN number:

  • ITIN number are seen as providing an official identification to those who are illegally residing in the country. Many people are of the opinion that illegal immigrants are issued ITINs without adequate due diligence which allows them to blend in the society without being noticed. Although the Internal Revenue Service has countered these accusations by ensuring that every possible background check is conducted before ITINs are issued, the debate is still on.
  • The Internal Revenue Service is subjected to criticisms regarding lack of compliance when it comes to ITINs. The ITIN number, which is initially issued to non-resident aliens only, and then expanded to cover resident aliens too, have been criticized for allowing illegal aliens to reside in the country. This has raised considerable concerns regarding its potential threat to security of the country.
  • ITIN number is considered a way of providing those benefits to the illegal aliens, which they are not entitled to. A widely advocated argument in this regard is that since the determination of who is a resident alien is based on substantial, and not legal, presence, many illegal aliens are given the same benefits as US citizens. For instance, benefits like Child Tax Credit and tax exemptions for spouses are given to both. The only exception, perhaps, is the Earned Income Credit which is only allowed to the local citizens. This equal treatment is actually seen as discriminatory by many in the US.
  • ITIN number, although only for tax purposes, is being widely used for identification outside the tax system. There are several reports of the ITIN being used to open bank accounts and even obtain driver licenses. In some cases, ITINs have also been reported to be used to obtain employment. Obviously, the employers deserve their fair share of blame for not demanding an SSN for employment, the fact remains that people are not satisfied with the way ITIN number has been functioning in the country.

If you want to apply for an, Individual Taxpayer Identification Number, or ITIN tax number and have any other questions, please feel free to contact us at 888-509-3616. If you have any suggestions please share those with us as well. Freedomtax ITIN Number has a professional team of IRS Certifying Acceptance Agents, and tax accounting professionals with more than 16 years of experience, helping immigrants with their ITIN application. Freedomtax can also help immigrant entrepreneurs incorporate a business in the USA. Freedomtax ITIN Tax Number Online services provides Quality, Professional Service with a Family Feel.


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