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Taxes On Wages of Undocumented Workers

I've never quite understood this. Was listening to Ed Schultz and a guy called in who had been in the U.S. for 17 years as an undocumented worker. He has worked for the same employer for almost the entire time. He says taxes are withheld from his paychecks, including Social Security and Medicare taxes. If a worker is undocumented and has never been issued a Social Security number, where do the taxes that are collected from him go? If the social security number he is using is a phoney one, wouldn't there be a red flag on it and get tracked down? If the SS# was stolen from someone else, it also seems likely that a red flag would appear somewhere. Anyone know?

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