Well, to start, between 2011 and 2016, the IRS documented more than 1.3 million cases of identity theft by people who had been given Individual Taxpayer Identification Numbers (ITINs). An ITIN, created by IRS fiat in 1996, is a “tax processing number only available for certain nonresident and resident aliens, their spouses, and dependents who cannot get a Social Security Number.[4] The IRS claims that ITINs do not create legal residency status or work authorization on an I-9 form. But thanks to what amounts to an the effort to get illegals to pay taxes, the ITIN can be used to claim the Child Tax Credit, to get a driver’s license, to open an interest-bearing checking account, and more besides. An ITIN also provides, somewhat ironically it will seem to many readers, proof of residency in the United States in case an illegal applies for legal status at some point.
Because the IRS wants to tax them, those with no legal status in the United States can fairly easily get an ITIN, just by filling out a W-7 form—essentially end-running the main purpose of a 1986 law that required legal residency in order to get a job. The applicant does not have to appear in person before any government official, and need submit only any one of 13 documents approved for the purpose; the document(s) are returned with the ITIN after 60 days. The IRS does not ask about legal status, and the law concerning the privacy of all IRS functions has been interpreted (by the IRS) to prohibit it from sharing any information about ITIN applicants with immigration officials or law enforcement. By August 2012, the IRS had assigned 21 million ITINs to taxpayers and their dependents—a number that far exceeds conventional estimates of the number of illegal immigrants in the United States. By now the number is certainly larger, but it is impossible to find in public sources. It is so easy to get an ITIN that it’s not unreasonable to conclude that every illegal alien in the United States who wants an ITIN has one.
Of course, if any one of 13 documents will do, those most easily forged will be the documents of preference for illegal residents to get an ITIN. Why use a forged document? Because many illegal aliens have no documents at all, and some are forethoughtful enough not to use their real name to get one. That enables individuals to hide past indebtedness and criminal convictions in their country of origin, and also in the United States. So some again unknown number of illegal immigrants secure multiple ITINs to cover their own tracks and then sell those ITINs to newcomers, who simply adopt the fictitious name on the document invented by the earlier arrival.
Many illegal immigrants are content with an ITIN number, but ITINs are limited; they are not much good for credit applications, for example. So, unsurprisingly, a major document-forging industry has arisen in the wake of the 1986 law not just for the purpose of helping illegals get ITINs, but for a good deal more than that—for stealing the identity of U.S. citizens. Good luck, IRS, taxing all that hard work.
The problem was detected and made publicly known at least by 2002, when the Immigration and Naturalization Service reported that, “large-scale counterfeiting has made fraudulent employment eligibility documents (e.g., Social Security cards) widely available.” The report also describes an incident in 1998 where “INS seized more than 24,000 counterfeit Social Security cards in Los Angeles after undercover agents purchased 10,000 counterfeit INS permanent resident cards from a counterfeit document ring.”
It is not hard to understand why this happens. Once in the United States, illegal immigrants use counterfeit documents to secure jobs that would otherwise be kept out of reach by the employee verification process. That works for many who are content with an ITIN, but also for those illegals who want better documents for the purpose of, for example, appropriating someone else’s credit to buy or lease cars and acquire auto insurance. Some use it to claim Social Security benefits that are not theirs, and some succeed. This requires actual identity theft: the trifecta of name, social security number, and birthdate. Addresses and telephone numbers are easy to add to make a stolen identity package.