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Fact check: What is an Individual Taxpayer Identification Number (ITIN) and how do undocumented immigrants use it?
1. Summary of the results
An Individual Taxpayer Identification Number (ITIN) is a 9-digit tax identification number issued by the IRS for individuals who need to file taxes but are not eligible for a Social Security Number (SSN) [1]. Created by the U.S. Department of Treasury in 1996, ITINs allow immigrants without Social Security numbers to comply with U.S. tax laws [2]. As of 2022, the IRS had issued 26 million ITINs, with 5.8 million remaining active that year [2].
2. Missing context/alternative viewpoints
Several crucial pieces of context are missing from the original question:
- Economic Impact: In 2022, undocumented immigrants contributed over $96 billion in federal, state, and local taxes [3].
- Broader Functionality: While primarily for tax purposes, ITINs have evolved to become tools for economic and social inclusion, enabling immigrants to:
- Open bank accounts
- Apply for loans [2]
- Important Limitations: ITINs:
- Do not provide work authorization
- Do not grant eligibility for Social Security benefits
- Are for tax purposes only [1]
- Current Challenges: A new IRS-ICE data-sharing agreement threatens the trust that previously encouraged immigrants to file taxes using ITINs, potentially affecting future tax compliance [3].
3. Potential misinformation/bias in the original statement
The original question's framing might lead to some misconceptions:
- It focuses solely on undocumented immigrants, when ITINs are actually designed for all resident and nonresident aliens who need to file taxes but can't get an SSN [1].
- It doesn't acknowledge that while ITIN holders contribute to federal programs through their taxes, they are excluded from receiving benefits like Social Security and Medicare [3].
- The question might suggest ITINs are primarily used by undocumented immigrants to evade proper taxation, when in fact they are a legitimate tool created by the Treasury Department to ensure tax compliance [2].