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Software Tax (AXcess News) New York - Yesterday, federal agents arrested seven current and former managers of IFCO Systems North American, Inc. for conspiring to transport, harbor, and encourage and induce illegal aliens to reside in the United States for commercial advantage and private financial gain. The conspiracy charge carries a penalty of up to 10 years in prison and a fine of up to $250,000 for each alien they're responsible for hiring. Two other IFCO employees were arrested on criminal charges relating to fraudulent documents.

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Every Landlord Tax Deduction In addition to the criminal arrests, agents yesterday conducted "consent" searches or executed criminal search warrants at more than 40 IFCO plants and related locations in 26 states that resulted in the apprehension of approximately 1,187 illegal alien IFCO employees. Three of the criminal search warrants were executed at residences in Guilderland, New York, where IFCO was allegedly housing illegal alien employees.

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Tax Help The consent searches and search warrants were conducted at locations in 26 states: Alabama, Arizona, Arkansas, California, Colorado, Florida, Georgia, Illinois, Indiana, Louisiana, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, New Jersey, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, South Carolina, Virginia and Utah.

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Help Tax The arrests and search warrants are part of an ongoing criminal investigation of IFCO's Pallet Management Services division that began more than a year ago. The investigation is being conducted by Immigration and Customs Enforcement, New York State Police -- Upstate New York Regional Intelligence Center, Social Security Administration Inspector General, Internal Revenue Service - Criminal Investigation Division, and the Department of Labor Inspector General. The Guilderland, NY Police Department and Schenectady, NY Police Department also provided assistance.

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Ernst Ernst Guide Guide Tax According to a government affidavit filed in the Northern District of New York, the investigation began in February 2005 when ICE agents received information that IFCO workers in Guilderland, NY, were witnessed ripping up their W-2 tax forms and that an IFCO assistant general manager had explained that these workers were illegal aliens, had fake Social Security cards and did not intend to file tax returns.

Tax Return According to the affidavit, subsequent investigation indicated that IFCO officials transported illegal aliens to and from work; paid rent for the housing of illegal alien employees; and deducted money from the aliens' monthly paychecks to cover these expenses. Former IFCO employees also said it was common practice for IFCO to hire workers who lacked social security cards or produced bogus identification cards.

Return Tax The affidavit also alleges that IFCO officials knowingly hired an illegal alien who was an informant for law enforcement. In numerous recorded conversations, IFCO officials reimbursed this person for obtaining fraudulent identity documents for other illegal alien employees; used the person to recruit other illegal workers; and advised the person and other illegal alien employees on how to avoid law enforcement detection, the affidavit alleges.

Guide Guide Master Master Tax The affidavit also alleges that approximately 53.4 percent of the Social Security numbers contained on the IFCO Systems North America Inc. payroll of roughly 5,800 workers during 2005 were either invalid, did not match the true name registered with the Social Security Administration for that number, or belonged to children or deceased persons. The Social Security Administration sent at least 13 written notifications to IFCO headquarters about such discrepancies on its payroll records in 2004 and 2005, the affidavit alleges.

Tax Preparation "Employers and workers alike should be on notice that the status quo has changed," said Homeland Security Secretary Michael Chertoff during a televised press conference.

Preparation Tax "These enforcement actions demonstrate that this department has no patience for employers who tolerate or perpetuate a shadow economy. We intend to find employers who knowingly or recklessly hire unauthorized workers and we will use every authority within our power to shut down businesses that exploit an illegal workforce to turn a profit."

Employer Tax Guide New York State Police Superintendent Wayne E. Bennett said, "It is disturbing that there are businesspeople who have decided to exploit illegal aliens for the sole purpose of their own financial gain. Compounding the issue is the fact that corporation officials also engaged in tactics to obtain false identifications; instructed illegal aliens on how to avoid detection by law enforcement officials; and, practiced deception with government agencies regarding the true identifications of the workers."

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