Unauthorized U.S. Workers Claim $4.2 Billion in Tax Credits

[Avatar9]

Tax filers who were not authorized to work in the U.S. collected $4.2 billion in tax credits in 2010, a Treasury Department watchdog reported. Although federal law prohibits people residing illegally in the U.S. from receiving most public benefits, an increasing number filed tax returns claiming the additional child tax credit intended for working families, according to the report released today by the Treasury Inspector General for Tax Administration, J. Russell George.
“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,” the report said.
The recipients didn’t qualify for Social Security numbers and filed tax returns using individual taxpayer identification numbers supplied by the Internal Revenue Service.
The additional child tax credit was established in 1997, one year after Congress explicitly restricted eligibility for other benefits to taxpayers with Social Security numbers.
Social Security Numbers
The law authorizing the child tax credit didn’t specifically limit recipients to holders of Social Security numbers. The IRS has taken the position that it doesn’t have the authority to deny the benefit to people who file with a taxpayer identification number.

http://www.newsmax.com/Newsfront/BBEXCLUDE-BGOVALL-BGOVTAX-BNALL/2011/09/01/id/409481


yet more evidence Washington has no interest in enforcing the borders

 

[Angelhair]

Tax filers who were not authorized to work in the U.S. collected $4.2 billion in tax credits in 2010, a Treasury Department watchdog reported. Although federal law prohibits people residing illegally in the U.S. from receiving most public benefits, an increasing number filed tax returns claiming the additional child tax credit intended for working families, according to the report released today by the Treasury Inspector General for Tax Administration, J. Russell George.
“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,” the report said.
The recipients didn’t qualify for Social Security numbers and filed tax returns using individual taxpayer identification numbers supplied by the Internal Revenue Service.
The additional child tax credit was established in 1997, one year after Congress explicitly restricted eligibility for other benefits to taxpayers with Social Security numbers.
Social Security Numbers
The law authorizing the child tax credit didn’t specifically limit recipients to holders of Social Security numbers. The IRS has taken the position that it doesn’t have the authority to deny the benefit to people who file with a taxpayer identification number.

Unauthorized U.S. Workers Claim $4.2 Billion in Tax Credits


yet more evidence Washington has no interest in enforcing the borders

But of course they have no interest. Nothing new there. They will not stop until this country is a garbage dump. Which is very fast getting there!!

 

[chanel]

The law needs to be changed and it seems the IRS agrees with the audit findings. Get 'er done!

 

[waltky]

Non-citizens claimin' citizens' rights...

Illegal Workers Used Tax Credit to Pocket $4.2 Billion, Audit Shows
September 02, 2011 | Talk about a tax loophole. Undocumented workers collected $4.2 billion in a certain tax credit last year, up from less than $1 billion five years ago, according to a new audit.

The report from the Treasury Inspector General for Tax Administration looked only at a tax benefit known as the Additional Child Tax Credit, a refundable credit meant for working families. The audit found that as a result of vague U.S. law -- as well as an expansion of the tax credit in stimulus legislation and other measures -- the number of illegal workers collecting the money has skyrocketed. The inspector general's office expressed concern about the trend and urged the IRS and Treasury Department to determine once and for all whether that money should be paid out. "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," the report said.

The report highlighted a quirk in U.S. law. Even people who are not authorized to work are supposed to pay the IRS taxes on their income. Many of those people cannot obtain a Social Security number, so to facilitate this the IRS hands out what are known as Individual Taxpayer Identification Numbers -- so illegal workers can file returns. However, in doing so many of those workers are claiming tax benefits like the Additional Child Tax Credit. For some, it's a way of making even more money. "Refundable credits can result in refunds even if no income tax is withheld or paid," the report noted.

The Additional Child Tax Credit is an offshoot of another tax credit worth up to $1,000 per child. Restrictions for the tax credits were loosened in 2001, and eligibility was temporarily increased by the 2009 stimulus bill. "As such, more taxpayers could claim the ACTC or claim a greater amount," the report said. The inspector general's office said 2.3 million undocumented filers claimed the credit in 2010, adding up to $4.2 billion worth of refunds.

Not all immigrants who are unauthorized to work are necessarily illegal immigrants. However, any legal immigrant who works without authorization would be in violation of his or her immigration status. The report said that if the administration determines the credits should not be paid in the future, then the IRS needs the authority to stop them. According to the audit, the IRS agreed with that recommendation.

Read more: Illegal Workers Used Tax Credit To Pocket $4.2 Billion, Audit Shows | FoxNews.com

 

[Peevishnky]

How is it that undocumented illegals can file a tax return anyway? The government knows who and where these people are but turns a blind eye refusing to take action, stop the payouts, and deport the illegals collecting the money. I'll just bet these are the same undocumented voters that show up at the polls, with no IDs and vote for these hacks that allow them to steal from us.

 

[Trajan]

How is it that undocumented illegals can file a tax return anyway? The government knows who and where these people are but turns a blind eye refusing to take action, stop the payouts, and deport the illegals collecting the money. I'll just bet these are the same undocumented voters that show up at the polls, with no IDs and vote for these hacks that allow them to steal from us.

they can get an ITIN number (individual taxpayer identification number), its for tax purposes and the IRS does not track a filers citizenship status. they are not supposed to get the income earned credit (IEC).