In addition to demographic information, the extent to
which this population pays taxes is also an important
determinant of the fiscal impact of unauthorized immigrants.
Data from the Social Security Administration
(SSA) and the Internal Revenue Service (IRS) suggest
that some unauthorized immigrants use false or fraudulently
obtained Social Security numbers (SSNs) to satisfy
paperwork requirements during the hiring process and
that employers use those numbers to withhold federal,
state, and local income and payroll taxes for employees.
Workers who do not qualify for SSNs can use Individual
Tax Identification Numbers issued by the IRS to file tax
returns, make payments, and apply for refunds. Although
there are no reliable data on unauthorized immigrantsÂ’
rate of compliance with tax laws, the IRS estimates that
about 6 million unauthorized immigrants file individual
income tax returns each year.23 Other researchers estimate
that between 50 percent and 75 percent of unauthorized
immigrants pay federal, state, and local taxes.
For example:
B The SSA assumes that about half of unauthorized
immigrants pay Social Security taxes.24