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IRS doles billions in tax credits to “undocumented workers”
Hotair ^ | 09/02/2011 | Tina Korbe

Posted on 09/02/2011 11:42:43 AM PDT by SeekAndFind

Individuals who are not authorized to work in the United States (i.e. immigrants in the country illegally) last year collected $4.2 billion in tax refunds from the Internal Revenue Service, according to a new audit from the Treasury Inspector General for Tax Administration (TIGTA).

A little something called the Additional Child Tax Credit is to blame. The audit explains (emphasis mine):

Many individuals who are not authorized to work in the United States, and thus not eligible to obtain a Social Security Number (SSN) for employment, earn income in the United States. The Internal Revenue Service (IRS) provides such individuals with an Individual Taxpayer Identification Number (ITIN) to facilitate their filing of tax returns. Although the law prohibits aliens residing without authorization in the United States from receiving most Federal public benefits, an increasing number of these individuals are filing tax returns claiming the Additional Child Tax Credit (ACTC), a refundable tax credit intended for working families. The payment of Federal funds through this tax benefit appears to provide an additional incentive for aliens to enter, reside, and work in the United States without authorization, which contradicts Federal law and policy to remove such incentives.

When the author of the audit states “an increasing number” of illegal immigrants are claiming the ACTC, he’s not kidding. Claims for the credit have increased five-fold, from $924 million in 2005 to $4.2 billion last year.

The IRS says it doesn’t have the authority to disallow the claims. Apparently, the law doesn’t explicitly forbid unauthorized workers from claiming the tax credit, so the IRS just has to dole it out. And recent changes to tax law have made the refund even easier to obtain. Federal Eye’s Lisa Rein:

Changes to tax law are partly to blame for the explosion in refunds for additional child tax credits in recent years, auditors found. Before 2001, filers needed to have three or more children to qualify — and to owe more Social Security taxes than earned income credits.

But those requirements have been eliminated and the allowable refund for each child doubled. The American Recovery and Reinvestment Act of 2009 also made the refund easier to get, auditors found.

The Treasury IG recommended the IRS work with the Treasury Department to clarify the law. TIGTA also recommended the IRS check the immigration status of filers with taxpayer identification numbers. IRS agreed to do the first, but stopped short of the second.

So, while it might be true illegal immigrants pay taxes, it’s also true they receive tax breaks that, by the admission of TIGTA, serve as added incentive to remain in the country illegally.


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: aliens; eitc; illegalaliens; illegals; illegalstaxcredits; irs; taxcredits; undocumented
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1 posted on 09/02/2011 11:42:47 AM PDT by SeekAndFind
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To: SeekAndFind

Criminal sickness. That´s what the government of the United States is coming to.


2 posted on 09/02/2011 11:47:35 AM PDT by onedoug (!)
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To: onedoug

Pandering to special interest groups, shelling out our grandchildren’s money.


3 posted on 09/02/2011 11:53:31 AM PDT by The_Media_never_lie
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To: onedoug

Pandering to special interest groups, shelling out our grandchildren’s money.


4 posted on 09/02/2011 11:54:03 AM PDT by The_Media_never_lie
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To: The_Media_never_lie

You can say that again!


5 posted on 09/02/2011 11:55:39 AM PDT by The_Media_never_lie
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To: SeekAndFind; Liz; AuntB; La Lydia

The-IRS-does-a-job-on-the-American-taxpayers-cause-the-INS-didnt-do-theirs PING


6 posted on 09/02/2011 12:05:13 PM PDT by Tennessee Nana
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To: SeekAndFind
Circulated / e-mail.
7 posted on 09/02/2011 12:08:50 PM PDT by lentulusgracchus (Concealed carry is a pro-life position.)
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To: SeekAndFind
What's the problem?

The country's rich and everyone's got a good paying job. We can afford to throw money away.../s

8 posted on 09/02/2011 12:12:19 PM PDT by GOPJ (126 people were indicted for being terrorists in the last two years. Every one of them was Muslim.)
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To: Tennessee Nana; SeekAndFind; AuntB; La Lydia; thouworm; stephenjohnbanker; Grampa Dave
All of this is collected with one identity. Illegals buy multiple fake identities. The Wasington state rapist had some 30 identities.

NOTE WELL: Earned Income Tax Credit is available only to immigrant workers who obtain legal work status. But the law allows immigrants to claim EITC for up to three years prior to obtaining that status. Workers simply file a tax return for the years in which they were not legally eligible to work in the US.

The most widespread EITC abuse stems from the requirement that children live with the worker for more than six months of the year. IRS does little to verify the claim.

Many immigrants falsify givt forms, claiming non-existent children, or claim children who they’ve left behind with relatives. Those with two or more children and income below $32,121 could get as much as $4,008. It is estimated that illegals got $22 billion EITC refunds.....probably is much, much more.

====================================

ONE IDENTITY RIDES THE US GRAVY TRAIN An illegal alien w/ wife and five children violates our borders. He gets a job mowing lawns for $5.00 or 6.00/hour. At that low wage, with six dependents, he pays no income tax, so each year, he files an Income Tax Return to get "EITC---earned income credit" of up to $3,200 scot-free.

The one identity qualifies for Section 8 housing and subsidized rent. He qualifies for food stamps and no deductible, no co-pay free health care. His children get free school breakfasts and lunches. The kids qualify for monthly SSI checks, faking ADD; the illegal and his wife get SSI if they fake being aged, blind or disabled; SSI qualifies them for Medicare.

Plus illegals don't worry about pricey items like car insurance, life insurance, or homeowners insurance, and qualifies for relief from high energy bills.

9 posted on 09/02/2011 12:17:57 PM PDT by Liz ( A taxpayer voting for Obama is like a chicken voting for Col Sanders.)
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To: SeekAndFind; Nachum
Individuals who are not authorized to work in the United States (i.e. immigrants in the country illegally) last year collected $4.2 billion in tax refunds from the Internal Revenue Service, according to a new audit from the Treasury Inspector General for Tax Administration (TIGTA).

ACK WHEN ARE REPUBS GOING TO SAY/DO SOMETHING! ANYTHING? ANYONE IN DC NOT A EVIL SWINE?

Nachum, list worthy? I'm going nuts. I can't take this evil crap.

10 posted on 09/02/2011 12:27:20 PM PDT by little jeremiah (Courage is not simply one of the virtues, but the form of every virtue at the testing point. CSLewis)
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To: SeekAndFind

“Rule 2. You Must Have a Valid Social Security Number (SSN)
To claim the EIC, you (and your spouse if filing a joint return) must have a valid SSN issued by the Social Security Administration (SSA). Any qualifying child listed on Schedule EIC also must have a valid SSN. (See Rule 8 if you have a qualifying child.)

If your social security card (or your spouse’s if filing a joint return) says “Not valid for employment” and your SSN was issued so that you (or your spouse) could get a federally funded benefit, you cannot get the EIC. An example of a federally funded benefit is Medicaid.

If you have a card with the legend “Not valid for employment” and your immigration status has changed so that you are now a U.S. citizen or permanent resident, ask the SSA for a new social security card without the legend.”

I copied this from IRS Publication 17. It states that you must have a valid SSN to get the Earned Income Tax Credit.


11 posted on 09/02/2011 12:43:51 PM PDT by forgotten man (forgotten man)
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To: SeekAndFind; Liz
Coincidence? The IRS has been the big roadblock hindering this local investigation: Tampa street criminals steal over $100 Million filing fraudulent tax returns
12 posted on 09/02/2011 12:56:35 PM PDT by NautiNurse (Drink good coffee. You can sleep when you are dead.)
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To: forgotten man
THE LUCRATIVE PHONY ID BUSINESS---DOCUMENTS FOR A PRICE

NORTH BERGEN, NJ -- July 21, 2006 -- Pelcastre brothers, Angel and Jorge, Dallas, Texas, were a walking threat to US national security, expert document forgers who, for a few thousand dollars, could give anyone a new identity, L/E said.

The Texas brothers turned a NJ hotel room into a business office and were readying a massive cache of fake Social Security cards for delivery to a local NJ identity broker. The Texas brothers were a "one-stop shop" for a myriad of fake US documents, including birth certificates, Social Security cards, driver's licenses for any state in the US, passports and resident alien cards, said state police.

Officers happened upon two cars bearing Texas plates in a NJ hotel parking lot. Authorities wouldn't identify the NJ hotel by name for fear it would spark retribution from savage drug cartels operating in the US.

The Texas brothers were followed to a NJ office supply store nearby where they purchased computer supplies. Officers then followed the Texans to a NJ storage facility in Secaucus, NJ, where the Texans loaded several boxes into a car. One of them stood lookout.

L/E approached the Texas brothers when they returned to the NJ hotel and questioned them separately. The Texas brothers consented to a search.

Police recovered laminating sheets with built-in security features, pages of blank documents waiting for fake names and information, finished documents, computers and software to create the fake IDs.

All told, the haul was worth about $500,000 on the street. Police also recovered $6,000 in cash, which was the first payment from a NJ fake document broker for a shipment of 500 fake Social Security cards. ####

13 posted on 09/02/2011 2:08:36 PM PDT by Liz ( A taxpayer voting for Obama is like a chicken voting for Col Sanders.)
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To: SeekAndFind

prosecute, prosecute, prosecute, prosecute, Im not finished....Prosecute, prosecute, prosecute


14 posted on 09/02/2011 2:35:08 PM PDT by ronnie raygun (V)
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To: little jeremiah

The only ones in D.C. to speak up against illegals are Jim DeMint, and Michele Bachmann.

The rest are COWARDS


15 posted on 09/02/2011 2:36:31 PM PDT by stephenjohnbanker (God, family, country, mom, apple pie, the girl next door and a Ford F250 to pull my boat.)
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To: stephenjohnbanker

It’s really amazing what utter cowards (at best) the vast majority of congress beings are.


16 posted on 09/02/2011 4:38:41 PM PDT by little jeremiah (Courage is not simply one of the virtues, but the form of every virtue at the testing point. CSLewis)
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To: little jeremiah

I have more choice words for what they are, but I hold them in abeyance : )


17 posted on 09/02/2011 6:55:09 PM PDT by stephenjohnbanker (God, family, country, mom, apple pie, the girl next door and a Ford F250 to pull my boat.)
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To: Liz

UNREAL! -— Speechless again.

Except to say you must have the patience and grace of a saint to wallow in this cesspool and keep such an even disposition.


18 posted on 09/02/2011 7:04:35 PM PDT by thouworm (.)
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To: stephenjohnbanker

I know, evil swine is a huge insult to swine both the virtuous ones and bad ones.


19 posted on 09/02/2011 7:10:23 PM PDT by little jeremiah (Courage is not simply one of the virtues, but the form of every virtue at the testing point. CSLewis)
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To: little jeremiah

Wish C.S. Lewis were around today.....STRIKE THAT! I wouldn’t wish this on anyone! : )


20 posted on 09/02/2011 7:22:32 PM PDT by stephenjohnbanker (God, family, country, mom, apple pie, the girl next door and a Ford F250 to pull my boat.)
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