Imagine that you get a letter telling you that you owe over $15,000 in back taxes on income from jobs a couple of thousand miles from your home -- and that you had not held any job during the time period in question. This woman doesn't have to imagine -- it happened to her.

ne woman's Social Security identification number has been used by at least 81 people in 17 states. Though impossible to verify in every case, information gleaned from criminal investigations, tax documents and other sources suggest most of the users were probably illegal immigrants trying to get work.

Audra Schmierer, a 33-year-old housewife in this affluent San Francisco suburb, realized she had a problem in February 2005, when she got a statement from the IRS saying she owed $15,813 in back taxes — even though she had not worked since her son was born in 2000. Perhaps even more surprising, the taxes were due from jobs in Texas.

Schmierer has since found that her Social Security number has been used by people from Florida to Washington state, at construction sites, fast-food restaurants and even major high-tech companies. Some opened bank accounts using the number.

The federal government took years to discover the number was being used illegally, but authorities took little action even then.

"They knew what was happening but wouldn't do anything," said Schmierer. "One name, one number, why can't they just match it up?"

It is becoming a more and more common problem in America -- especiallysince the IRS and Social Security do not tell immigration authorities about the proble. All they do is contact the employers. Oh, yeah, and possibly fine them.

Under current law, if the Social Security Administration or the Internal Revenue Service find multiple people using the same Social Security number, the agencies send letters informing employers of possible errors.

The IRS can fine employers $50 for each inaccurate number filed, a punishment that companies often dismiss as just another cost of doing business.

"Sending letters is the limit to what can be done," Social Security spokesman Lowell Kepke said. "We expect that will be able to fix any records that are incorrect."

Fifty bucks.

No wonder employers ignore the law -- it is cheaper than doing things legally.

That needs to be fixed.

Posted by: Greg at 07:23 AM | No Comments | Add Comment
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