On Tax Day, Everyone's A Citizen, Many Learn
Immigrants Turn to Pros For Filing With the IRS

By Christy Goodman
Washington Post Staff Writer
Sunday, April 15, 2007

Maritza Serrano has traveled from her Baltimore home to Fredy Lopez's accounting firm in Manassas for the past five years for assistance in filing her personal and corporate income tax returns.

"The first time it was a little confusing, but when you come here, they explain everything you have to do. The second time it was easier," said Serrano, 40, who owns a construction company and was putting the finishing touches on her forms last week to make Tuesday's deadline.

Serrano said she is grateful for the help she received from the government in getting established and finding work when she first arrived from El Salvador. Paying her taxes funds those services, she said.

"When you receive something from someplace, you have to give something, too. . . . Everybody that comes into this country needs to contribute to this country," she said.

"It is the only way to show appreciation for this country. That is what we tell to our people," said Lopez, who began Fredy Lopez & Co. in 1995.The company also gives business advice and "educates our people to have respect for the laws," he said.

His company has filed an estimated 4,500 corporate and individual returns this year, he said. More than 90 percent of his clients are Hispanic and about 15 percent of them are getting refunds, he said. Many of his clients file using Individual Taxpayer Identification Numbers, which the IRS assigns to people who do not have or are not eligible for Social Security numbers.

"Everybody is a citizen for tax purposes," said Lopez, adding that the concept is "hard to digest" for some immigrants. "The IRS tells you you are a citizen, but immigration could come and deport you."

The national debate over immigration legislation has driven clients into Hank Azais's consulting service. His Manassas and Winchester offices have filed about 400 tax returns this year, half using Individual Taxpayer Identification Numbers. Azais said some of his customers have asked him for assistance in filing years of back taxes to make sure they are in good standing with the IRS.

"Having their taxes done is a benefit to them. . . . Generally, when something opens for immigration, they will ask if you have tax returns for the past two or three years. Some of them ask for proof if they have been in the country for 10 years. What better proof is there than having tax returns for 10 years? That says a lot," Azais said.

That is why Alfredo Villegas, 32, of Manassas filed his taxes for the first time this year. The mason worker, originally from Mexico, said through a translator that he wanted his taxes up to date in case Congress approves an amnesty program.

He called the process a little sad but said he understood that the money is used for roads and schools and provides more opportunities for people like him. He described filing returns as fair.

It's not fair for everyone. Some immigrants fall victim to unlicensed "shark preparers" who overcharge or make fraudulent claims for bigger refunds, leaving unwitting clients open to a costly audit down the line, Lopez said.

Others find themselves owing a significant amount because their employers hired them as contractors and not as regular employees, said John Eastes, a senior tax adviser at a Woodbridge H&R Block office.

"They give them 1099 miscellaneous forms, meaning they haven't withheld any taxes. . . . Employers are doing that to avoid paying Social Security and Medicare taxes," Eastes said.

Josefina Gutierrez Calucho, 37, a self-employed cleaning woman originally from Bolivia, said she has paid her taxes for the past six years to comply with the law and to support the public education of her 10-year-old daughter, Talia.

As her accountant was filing out her forms, the Dale City resident smiled and said, "I like this country."