This is an old story to regular readers of J
The report, written by CIS fellow David North, says the
Internal Revenue Service doled out $4.2 billion in what is known as the
“additional child tax credit” in 2010 to those using an individual taxpayer
identification number, or ITIN, which is usually a signal of an illegal
immigrant.
The issue has been known for some time. But Mr. North went
deep into the data to try to look at why it’s happening, and said it’s a story
of a tax credit expanding beyond its initial scope, and midlevel IRS managers
twisting the law, leaving billions of dollars going to illegal immigrants.{...}
Nobody was answering the phones at the IRS during the
government shutdown, which began Oct. 1.
But the agency in the past repeatedly has said it doesn’t
believe the law allows it to deny illegal immigrants the tax credit, and also
disputes that it has the legal authority to deny claims even when they aren’t
backed up by documents showing that the children actually live in the U.S.
“The IRS does not have the legal authority to deny credits
during processing when documentation is not provided,” the agency told its
inspector general in 2011.
The “additional child tax credit” was created to help out
those who make too little to qualify for the full child tax credit. The ACTC is
refundable, meaning that even if the taxpayer doesn’t owe income tax, he or she
could get a payout the IRS.
That becomes an avenue for fraud, particularly when combined
with illegal immigrant workers, whose use of the tax credit has jumped from
796,000 filers in 2005 to 1.5 million in 2008 and 2.3 million in 2010,
according to the IRS‘ official auditor.
Investigators identified one address in Atlanta where 23,994
ITIN-related tax refunds were sent — including 8,393 refunds deposited to a
single bank account. Mr. North said those were pretty good indications of
fraud.
He said the IRS should also look for cases where an ITIN
filer goes from claiming no dependents to claiming four or five dependents the
next year.
Mr. North used an auditor’s report to identify a town in
Delaware and another on Virginia’s Eastern Shore with large concentrations of
ITIN filers.
Frankford, Del., had one address where 627 ITINs were
registered — despite the town having a population of just 862. Parksley, Va.,
had a single address with 100 ITINs registered, in a town of 847 residents.
Why people with no legal right to be in America should even
be able to get Employer Identification Numbers (EINs) or ITINs is something no
one want to talk about.
And it's not just bogus child credits. Another widespread
fraud that is practiced by illegal aliens aside from bogus child credits is
bogus filing for the earned income credit, another billion dollar giveaway.You
see, a lot of illegal migrants do 'pay' taxes of a sort.
After obtaining an ITIN (individual tax ID number) from the
IRS, once known as an EIN (employer identification number) and limited to business
owners with employees but now available to anyone for the asking, all an
illegal alien needs to do is to use a bogus social security number for work
purposes. When tax time comes along he or she
simply tell his tax preparer to write a letter stating that all earnings
credited to the social security number in question actually refer to the ITIN,
and then apply for an Earned Income credit.
Fraud is rampant.
I dis agree with the report's conclusion that this is merely
the work of some mid-level bureaucrats. Anyone who has worked in government
knows people at that level don;t originate policy but simply carry out the
orders of higher ups.
All this, of course, reveals another dirty little secret -
that the IRS knows exactly where a lot of the illegal migrants can be found,
but are choosing (or more likely being ordered) not to cooperate with ICE in
enforcing U.S. immigration laws.
Instead, they're busy persecuting the Obama Administration's
political enemies and denying 501c status to conservative political groups.
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