Discussion Archives:Employee with fake SSN - now what?

Employee was an illegal immigrant. Presented employer with this SSN. Turns out this SSN belonged to someone else. This was discovered when NCESC asked the client to verify the benefit claims against the client's account. We saw a name we did not know. It was the real name for that SSN.

"A person unduly fearful or contemptuous of that which is foreign, especially of strangers or foreign peoples."

I actually had to look that one up! Hmmmm...nope, I don't think I have contempt, just looking for people to follow the law. I honestly have not looked at the law, but frmo what I know, you're suppose to sign the guest book if you want to enter America legally. You're not suggesting that we haven't provided free medical services to illegal aliens are you Kev? And if we do provide free medical services (as well as free educational, social, et al services), my guess is that those costs are being passed along to someone....and I would also guess that those costs are bore by Americans.

This is a violation of disclosure rules. The employer has no "hard evidence" of anything-- just that the SSN was incorrect. It probably was identity theft, but would you risk your license on it? The IRS is not an immigration agency, and this is not our job, or even within the scope of our duties. By the way, I had this problem many years back when the Soc Sec Administration screwed up when I tried to change my name. I got a notice from the IRS and my employer-- but guess what-- I'm an American citizen and always have been. If the employer or the employer's accountant would have "reported" me to the IRS, I would have had the accountant disbarred for privacy violations. Disclosure of taxpayer information is a felony. I'm very conscious about disclosure and privacy.

As for the reporting requirement, the instructions for the 1099 forms allow the taxpayer to submit without a TIN, and file on paper. In this case, if the SSN is invalid, then you would have to do the same. I would attach a note to the filing. What else can you do?

I know sometimes we don't want more work, David, especially in an area where we have no experience. Given the new information you provided, it seems to me that the client should at least let the IRS and Social Security Administration know about this so that the real person's wage information can be corrected.

My point about the family loyalty is to show that these people are humans too. They're not animals. They may even be more civilized than many people here legitimately. At least they're willing to work. Can't say that about some Americans.

This is usually how it works, but many times the worker is not illegal, but evading other debts. My husband's company has had more than one instance where the employee was an American citizen, but was using a family member's SSN in order to avoid child support leins. It's actually pretty common.

Yes, employee presented fake SS card and fake ID card when hired and completing the I9. When the client confronted the employee, the employee admitted to client he was illegal and that he had presented fake documents. Employee told client that he had started the proper immigration paperwork many years ago, but stopped since he was getting away with it as is.

Our "hard evidence" is the notice from NCESC that basically states their records indicate this SSN belongs to another person...and I guess the guys confession. Nothing from IRS or SSA that I am aware of.

My intent was to submit a letter with the W2/W3 that simply stated there is no SSN on this W2 because we became aware the SSN we had was incorrect. The W2 would have the last known address - similar to how we would file any other separated worker. I would not include any other information. I would not call them out as illegal, stealing identity, speeding, running red-light, etc.

TaxWriter, to me, that sounds like what you were saying above. Agree?

Agreed. I would report the earnings exactly as you suggest.

Hey -- just my opinion. You called me xenophobic. I called you no names Kev. Play nice in the sandbox.

Thanks to all for trying to hold back!

Natalie, I fail to see how the tax professional could "correct" any SSA information without violating §7216. The preparer cannot release ANY biographical information to a third party. The reg language says this includes any "information including but not limited to a taxpayer's name, address, or identifying number, which is furnished in any form or manner by a taxpayer for, or in connection with, the preparation of a tax return of such taxpayer"

Aren't payroll returns also included as part of the prohibited disclosures? I assume that the employee did not give his permission in writing to the employer or the preparer. How could this be "corrected" without violating disclosure rules? A corrected W-2 would have to include the name of the correct taxpayer, right? And the accountant doesn't have permission to file anything on the taxpayer's behalf. As for the "illegal" employee-- if he did not give permission in writing for the accountant to disclose his information to a third party, then how would the SSA account be corrected without a violation of Section 7216?

Don't fool yourself for a second: business wants the illegal worker. The illegals are not coming up here on vacation, they are coming to get a job they know they can get (even though it's tapered down now because of the economic slowdown).

The US Chamber of Commerce crowd wants to reduce labor costs, that's all they care about. Whether it's an illegal immigrant or a legal one or one on a temporary Visa makes no difference to them.

The whole point of the New Testament was to temper the law with mercy and grace. A lot of this stuff against Mexicans is pure racism (against native Americans), let's call it what it really is. Racism, "fear of the unknown", bigotry: essentially the worst characteristics of humanity. Unfortunately, this kind of trash is being preached and encouraged by devils (posing as ministers) in many "conservative" American churches today. It's not the first time devils have taken over the pulpits, it happened in Germany a while back.

SSA's Social Security Verification System

It's the steps to being able to verify Social Security Numbers. With these new PTIN rules I am going to start using it for all my new clients.

I tried once getting authorization for a client of mine to use that Service for verifying when he got a new employee - and this was about 2 years ago. All I can say is that it was so cumbersome and I had so many problems getting into the program - I finally said forget it - it's not worth all the hassle and trouble the way it was set up. I've learned that - like with anything the government does to "make it easier for you" - they put stumbling blocks in your way to make it more difficult.

Consider that 1.5 million Mexican farmers were driven out of business by cheap corn from USA after NAFTA. Of course, it's the Mexican government's problem. Not ours.

But, I wonder, what would any one of us do? Just apply for immigration visa and wait for our turn, while we watch our family starve.

I often wonder what documentation my ancestors came with. There were no drivers licenses, Social Security, etc, I know they came in the backdoor and not through Ellis Island. Doctors checked for " signs of mental disturbances" at Ellis Island so my family would not have made it. There is a streak of insanity in my family, what else would account for the time I spend on this Chat board.

I wonder whether the Native Americans thought that they had ever invited the Pilgrims? This country was founded by illegal immigrants. Now we want a wall? That didn't work in Berlin either.