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This is a two part question: 1.)A buisness owner must pay employee taxes. If the employer did not know the the SS# was fraudulant, who keeps the unclaimed tax money paid by the employer and the taxes taken from employee checks? I know that unclaimed social security goes into an account.
2.) If interest is accumulating on this unclaimed social security why is social security going bankrupt when there are millions of illegal aliens who are not claiming it?

2006-11-13 10:48:19 · 7 answers · asked by sonkysst 4 in Business & Finance Taxes United States

7 answers

There is a great number of people complaining about illegal aliens receiving benefits they don't deserve, but no one stops to think that these people are contributing to social security, federal, state and local taxes, and local and national economy. On top of that they are doing jobs that a regular person would not. All this while getting minimal assistance from uncle Sam. and for all you about to say "how about their kids, we have to take care of their kids" I got news for you, they are citizens and would be taking care of them anyways.

The fact that an illegal alien contributed to a social security account doesn't mean that person will be able to claim benefits. Its logic people the government will take all the money people are willing to give to it, but will make any one jump through hoops to get it. so most of that money that gets contributed into false social security accounts goes to good ol' Uncle Sam and the "War on Terror"

2006-11-13 11:06:17 · answer #1 · answered by Talk is Cheap 2 · 1 2

Not sure what you mean by "unclaimed tax money." Wages are subject to income tax withholding and social security taxes. By and large it doesn't matter whether the employee provided a valid SS#. The employer must collect the taxes and deposit them with the IRS, along with its own share of social security tax. Generally the employee will not be entitled to a refund of social security taxes withheld, again regardless of status. If an employee would be entitled to a refund of income taxes withheld, but fails to claim a refund within the time required by law, then the government keeps that money too.

Similarly, if an individual would be entitled to social security benefits but fails to file a claim, then those funds are retained by the government. I'm not sure what you are referring to by "unclaimed social security", but I assure you there is no vast cash hoard anywhere representing such funds. IF there is an "account", it is a bookkeeping entry and not a separate trust fund. And have you checked interest rates lately? Nobody is getting rich off them.

2006-11-13 11:11:03 · answer #2 · answered by TaxGuru 4 · 0 0

What stops the illegal alien from using the same false social security # to claim benefits? Social security payments do not go into an account. They are "invested" in government debt. This means the government has already spent the money.

2006-11-13 10:53:26 · answer #3 · answered by STEVEN F 7 · 2 1

Anything umclaimed and paid to the government. Will become property of the government. They same way if you didnt file and deserved a return out side of the filable years.

Therefore the interest is theres too

2006-11-14 06:01:07 · answer #4 · answered by Anonymous · 0 0

The money goes into the account of the person who owns the social security number.

2006-11-13 10:52:48 · answer #5 · answered by October 7 · 0 3

8 billion spent in Iraq a month. The whole government is going broke.

2006-11-13 10:56:49 · answer #6 · answered by Anonymous · 0 2

For all the jobs that I've had, they have always checked my social to see if it was really me.

2006-11-13 10:56:49 · answer #7 · answered by BSG 3 · 0 1

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