The Basic Pilot Work Verification Scam
Q. Why is the Basic Pilot Work Verification program a government scam?
A. Because the government already knows who the illegals are who are filing tax returns -- but they have a don't ask, don't tell policy preferring to pass the work verification buck to the employer.

Q. How does the government know that someone is an illegal alien from their tax return?
A. There are two situations.

FIRST SITUATION: This situation is practiced by the vast majority of the millions of illegal alien tax filers over the second situation described below. The illegal alien tax filer files his 1040 return with an ITIN (Individual Tax payer Identification Number), but with an invalid or stolen social security number on the W2 attached to the 1040. It has to be obvious to the IRS that there is a conflict: The tax filer has filed his 1040 with an ITIN because he supposedly doesn't have a social security number. Yet the attached W2 shows a social security number. This begs the question: If the tax payer is showing a social security number on his W2, why is he using an ITIN? So why doesn't the IRS pass this information on to the DHS (Department of Homeland Security)? The prize winning spin offered is that it is a privacy issue. But even if we were to accept the notion that the IRS should keep tax payers' information private, no one would deny that fraud is exempt from privacy protection. Isn't the IRS obligated to report fraud? By not reporting fraudulent tax payers to Homeland Security, the IRS is itself committing a crime by knowingly allowing a "crime in progress" to continue.

SECOND SITUATION: The illegal alien tax filer is using a stolen identity.
The IRS knows when more than one person is filing a tax return with the same social security number. The IRS's database is among the most sophisticated in the world. Certainly it has the capability to flag multi user social security numbers much like getting flagged when you try to establish a WEB domain that is already registered to someone else. The IRS could easily coordinate with the DHS to launch an investigation to nab the stolen identity users. Incredibly, the IRS processes two or more returns with the same social security number. Again the spin offered by the IRS is that since they don't know who the real tax filer is, they must protect the privacy of all of those who are using the same identity.

Q. Wouldn't the problems described in both of the above situations be solved if the use of the Basic Pilot was made mandatory?
A. If the DHS in coordination with the IRS and SSA started to aggressively weed out the fraudulent tax filers described above, there would be little need for a Basic Pilot program.

Q. But aren't the IRS and SSA not allowed under law to pass on private information to each other and to the DHS unless by subpoena?
A. Yes, it's true, but as mentioned, reporting of fraud is exempt from privacy laws. For example, banks hold dear the privacy of their account holders. But if a bank teller becomes aware of an account holder who is embezzling from his employer, that teller is obligated to report the crime. Moreover, the IRS has its own fraud investigators who are authorized to arrest tax filers who submit fraudulent tax returns -- so the IRS has no excuses for allowing illegals to file fraudulent tax returns.

Q. If the DHS did aggressively weed out fraudulent tax filers, wouldn't that drive illegal aliens to work off the books?
A. Yes, many  would join the millions of illegal aliens who are working off the books now. But if the DHS were serious about ending illegal alien employment, they would aggressively go after employers who hire off the books. This would require legislation to end sanctuary cities that openly encourage off the books employment addition to a citizen whistle blower hotline.





By Hal Netkin
June 10, 2007