PRESS RELEASE FROM NPZ LAW GROUP, P.C. – Immigration and Nationality Lawyers – New Proposed Legislation Twists the Facts on Immigrants and Taxes.

FOR IMMEDIATE RELEASE – Ridgewood, New Jersey – January 9, 2014 – This week, as the Senate decides whether to extend unemployment benefits, some Senators are looking for “offsets.” Unfortunately, a fallback for some members of Congress has become targeting programs for immigrants, without regard to the true fiscal or social impact.
One recurring target has been the Additional Child Tax Credit for immigrant taxpayers. An amendment proposed by Senator Kelly Ayotte (R-NH) proposes to “pay for a three-month extension of unemployment benefits by stopping a scheme that currently allow {sic} illegal immigrants to claim the Additional Child Tax Credit.”

Calling a program which allows immigrant workers to pay taxes and legally claim tax credits a “scheme” distorts reality. Immigrant workers-both undocumented and lawfully present immigrants-like all workers, are required to pay taxes and many do so using an Individual Taxpayer Identification Number (ITIN). The IRS has determined that ITIN filers are indeed eligible to claim the Additional Child Tax Credit for their qualified children. Those who are undocumented pay into a system that makes them ineligible for the vast majority of benefits their tax dollars fund.

Weeding out fraud is important and while there have been some reports of fraud in the program, just as there is in other tax programs, the “fraud” doesn’t occur when an ITIN holder claims the credit. Ending the entire program punishes those who are seeking to follow the law.

ITIN filers are doing the right thing by paying into the tax system with little hope of collecting any future benefits for themselves. According to the Treasury Department’s Inspector General, in 2010, ITIN filers reported $60 billion dollars in wages. There may be debate as to whether this is fair or reasonable policy, but it is not a scheme, nor is it fraud. The debate about ITIN filers and the Additional Child Tax Credit should be fueled by honest reporting and reliable facts.

For more information, please feel free to contact any of the U.S. immigration lawyers or attorneys in the U.S. Immigration & Nationality Law Division, Nachman, Phulwani, Zimovcak (NPZ) Law Group, by e-mail at or by calling us at 201-670-0006 (x107).