Client has a social security card that says:
"valid for employment only with DHS authorization."
The card does not say:
"not valid for employment."
The client's work permit expired in 2005.
Before you answer, read Rule 2 in Pub. 596, and then read the text of IRC 32(m).
The code appears to exclude only social security numbers that were issued explicitly for the purpose of allowing the person to claim a federally funded benefit such as Medicaid.
Even though my client's work permit is expired, the SSN nevertheless appears to be valid for purposes of EIC.
The language of the Internal Revenue Code makes no reference whatsoever to work permits or their expiration. It simply says that to claim EIC you have to have a social security number "other than a social security number issued pursuant to clause (II) (or that portion of clause (III) that relates to clause (II)) of section 205(c)(2)(B)(i) of the Social Security Act)."
My client has an SSN, and it was not issued "pursuant to clause (II) (or that portion of clause (III) that relates to clause (II)) of section 205(c)(2)(B)(i) of the Social Security Act)."
Some of you are going to think I'm nuts, but to me this is an open and shut case. The work permit may be expired, but by the definition in the IRC, the SSN is still valid for EIC.
Remember that even illegal aliens with an ITIN can amend their returns and claim EIC after they become legal and get an SSN. The code contains requirements for identifying the taxpayer and qualifying child with a valid SSN on the return. The code does not state that the SSN had to be valid for the tax year in question.
So an alien who was working illegally during 2004, and has now become legal with an SSN, can amend the return, and claim EIC for 2004. It was not legal for them to work in 2004, but now that they have a valid SSN to put on the return, they can claim EIC.
My client is simply doing this in reverse. It was legal for him to work in 2004, and now it isn't. But he still has a valid SSN to put on the return. His SSN does not fall within the scope of the exclusion in IRC 32(m).
Anyone care to try to convince me otherwise?
Has anyone noticed that the EIC preparer's due diligence checklist does not say anything about cards that are "valid for employment only with DHS authorization?"
This guy's card does not say "not valid for employment."
Burton M. Koss
"valid for employment only with DHS authorization."
The card does not say:
"not valid for employment."
The client's work permit expired in 2005.
Before you answer, read Rule 2 in Pub. 596, and then read the text of IRC 32(m).
The code appears to exclude only social security numbers that were issued explicitly for the purpose of allowing the person to claim a federally funded benefit such as Medicaid.
Even though my client's work permit is expired, the SSN nevertheless appears to be valid for purposes of EIC.
The language of the Internal Revenue Code makes no reference whatsoever to work permits or their expiration. It simply says that to claim EIC you have to have a social security number "other than a social security number issued pursuant to clause (II) (or that portion of clause (III) that relates to clause (II)) of section 205(c)(2)(B)(i) of the Social Security Act)."
My client has an SSN, and it was not issued "pursuant to clause (II) (or that portion of clause (III) that relates to clause (II)) of section 205(c)(2)(B)(i) of the Social Security Act)."
Some of you are going to think I'm nuts, but to me this is an open and shut case. The work permit may be expired, but by the definition in the IRC, the SSN is still valid for EIC.
Remember that even illegal aliens with an ITIN can amend their returns and claim EIC after they become legal and get an SSN. The code contains requirements for identifying the taxpayer and qualifying child with a valid SSN on the return. The code does not state that the SSN had to be valid for the tax year in question.
So an alien who was working illegally during 2004, and has now become legal with an SSN, can amend the return, and claim EIC for 2004. It was not legal for them to work in 2004, but now that they have a valid SSN to put on the return, they can claim EIC.
My client is simply doing this in reverse. It was legal for him to work in 2004, and now it isn't. But he still has a valid SSN to put on the return. His SSN does not fall within the scope of the exclusion in IRC 32(m).
Anyone care to try to convince me otherwise?
Has anyone noticed that the EIC preparer's due diligence checklist does not say anything about cards that are "valid for employment only with DHS authorization?"
This guy's card does not say "not valid for employment."
Burton M. Koss
Comment