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Profitwise News and Views
December 2003 Special Edition
Afternoon Panel Discussion
Fundamental Services: The forum concluded with a panel discussion about Fundamental Services: Documentation and Tax Issues. Julie A. Williams moderated the panel. The discussants were Barbara Dempsey, Elizabeth Salinas-Newby, and John A. Paletta. Barbara Dempsey Ms. Dempsey began the panel discussion with a description of the Individual Taxpayer Identification Number, the ITIN. The IRS initiated the program in July 1996 and issues ITIN's as a tax processing number. Its sole intended use is for tax filing, and not as a form of identification. The ITIN is similar in format to a Social Security card in that it rights and benefits to which ITIN and Social Security card holders are entitled differ significantly. Individuals who are nonresident aliens or U.S. residents that must file a U.S. tax return, but are not eligible for a Social Security number, require ITINs. ITIN holders are not eligible for benefits that are allocated to Social Security cardholders, such as the Earned Income Tax Credit, or Social Security benefits, and do not identify an individual as having a right to work in the U.S. However, an ITIN holder is eligible for the child tax credit on income tax returns. To obtain an ITIN, an individual must provide substantiating documentation to the IRS, including a signed W-7 application form. Individuals may complete and sign a W-7 application form for minor dependents under the age of 14, as defined by the IRS. Spouses and other dependents must sign and complete their own W-7 forms. Acceptable documents include: passport, driver's license, or identity cards issued by foreign governments. The IRS does accept the Matricula Consular or a Mexican voter registration card as acceptable documentation. See the IRS website To obtain an ITIN, an individual may apply at a local IRS office, apply by mailing original documents to the Philadelphia office, at a U.S. Consular office abroad, or with a certified Acceptance Agent. Acceptance Agents are authorized by the IRS to assist applicants in obtaining ITINs, review the documentation and forward the application to the IRS. An Acceptance Agent may be a college or university, financial institution, accounting firm, or federal agency. The IRS is concerned with individuals in the U.S. who are earning wages, regardless of immigration status. Anyone who has a non-work visa or is an illegal immigrant who is working in the U.S. needs an ITIN to file a tax return. A registered immigrant with a visa is usually entitled to a Social Security number. No one should be issued both an ITIN and a Social Security number. Ms. Dempsey concluded by saying that because there are so many qualifications for eligibility, it is best to check the IRS website Elizabeth Salinas-Newby Ms. Salinas-Newby began her discussion with the maxim that "Latinos don't use banks." Many Hispanics don't open bank accounts because: 1) most don't have proper identification; 2) the banking system in their country of origin is not reliable, therefore they don't trust any banking system; and 3) most are afraid to enter banks to open accounts due to lack of proper identification, and lack of knowledge of the system. Because most Latinos are unbanked (without bank accounts), they cash their paychecks and carry large sums of money and often become victims of robbery. They become frequent targets of exploitation because they pay cash for goods and don't receive or keep receipts for their purchases. Also, they are often singled out and accused of crimes because they do not have proper documentation. Because of the large amounts of cash many Hispanic males have after cashing paychecks, they are often jailed as suspected drug dealers. It is important that immigrants have proper identification and establish a banking relationship to stem these types of victimization. Ms. Salinas-Newby went on to say that immigrants contribute greatly to the economy of the U.S. It is important to have a continuous dialogue of diversity training for all workers, especially in the banking industry, to understand the complexity and issues of the immigrant community, and to deal with immigrant individuals and families without bias. "Latinos and Hispanics want to be included and be outstanding citizens and also utilize the same things that are available to everybody else. Any kind of documentation that will assist them to open bank accounts and prevent them from being victims helps the community." John A. Paletta John Paletta concluded the discussion with an explanation of the Social Security card, and how the government administers the card and its uses. All Social Security numbers have nine digits, and never begin with the numbers 000, 666, 800, or 900. Over the decades, there have been over 49 types of cards issued. For a full listing of features, see the Social Security Administration website To receive a Social Security card, an applicant must present proper documentation at a Social Security office for a face-to-face interview - applications are not accepted by mail. Registration within three months after the birth of a child, and enumeration at point of entry for qualified immigrants are the only other accepted methods of receiving a Social Security card in the United States. Some forms of acceptable documentation for obtaining a Social Security card include valid passports, birth certificates, Medicaid cards, and naturalization papers. It is best to check the Social Security website to see a full listing of acceptable documents. It should also be noted that copies of all documents should be saved, especially when handing over foreign documents, since verification will take longer - from 30 days to 3 months. The Social Security Administration is the only agency authorized to verify Social Security numbers and to have correct information on cardholders. No other organization can issue cards, correct, or verify Social Security information. Mr. Paletta acknowledged that while the Social Security Administration recognizes the widespread use of the Social Security card as de facto identification, its official use is only for the purpose of filing U.S. income tax returns. The administration cannot prohibit private companies or other government agencies from asking for a Social Security card as a form of identification. It is up to each individual to decide whether or not to furnish the information in order to receive services. Even when opening bank accounts, the U.S. PATRIOT Act states that the Social Security card is not the only form of acceptable documentation. |
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for a full listing of required documents. Supplying appropriate documentation can often become a problem for illegal immigrants who do not have original documents, or do not trust others, including government agencies, with their originals.
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