Immigration Article of the Day: Taxing Undocumented Immigrants Redux by Francine J. Lipman
Taxing Undocumented Immigrants Redux by Francine J. Lipman
Abstract
Almost twenty years ago in the early morning light on April 15 while assisting a long line of anxious taxpayers at a Volunteer Income Tax Assistance Program in Santa Ana, California, I faced the reality that undocumented immigrants are taxed separately, without representation, and unequally compared to their work-authorized counterparts. In this real-world setting, I realized that these foreign-born, American residents and workers were subject to federal, state, and local income, sales, excise, property, transfer, and payroll taxes, even though they do not qualify for most federal benefits. Congress requires that these taxpayers use a different Taxpayer Identification Number (TIN) that I quickly discovered was an Individual Taxpayer Identification Number (ITIN). The government-provided free tax software that we were using that tax season did not accept ITINs as a valid TIN, and, therefore, all of the ITIN returns scheduled that long, stressful tax deadline day had to be prepared and filed manually. Preparing tax returns manually rather than by using computer software means using paper forms, working through every schedule together with the instructions, and a calculator. After preparing these tax returns, we had to make copies for mailing rather than electronically submitting the federal and state income tax returns like most of the 250 other clients with appointments. My dedicated students who were volunteering with me on that April 15 were undergraduates majoring in accounting. It was an eye-opening, instructive, and transformative day for all of us.
On April 16, after a hard-earned rest, I started researching, writing, and working with undocumented immigrants in my local community and across the country. Almost twenty years later I am still at it. While not much has changed over the decades, today I partner with other lawyers, accountants, economists, think tanks, organizers, and advocates across America who similarly research, write, advocate, and support undocumented immigrants and their families and communities. Their efforts include calls for change to tax policies, administration, and laws at the federal, state, and local levels. And they have been and are making progress across America at the federal, state, and local levels. This symposium issue includes essays by frontline passion warriors for tax justice and equality. But before you dive into these evocative essays, this introduction will provide a general background on the demographics of undocumented immigrants and their tax treatment under federal law. Then I will briefly introduce and describe each essay to ensure that you read this entire issue from cover to cover.
KJ