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View Full Version : U.S. Issues Undocumented workers got billions from IRS in tax credits, audit finds


Donger
09-02-2011, 10:45 AM
http://www.washingtonpost.com/blogs/federal-eye/post/undocumented-workers-got-billions-from-irs-in-tax-credits-audit-finds/2011/03/23/gIQAhtaKvJ_blog.html?hpid=z3

The Internal Revenue Service allowed undocumented workers to collect $4.2 billion in refundable tax credits last year, a new audit says, almost quadruple the sum five years ago.

Although undocumented workers are not eligible for federal benefits, the report released Thursday by the Treasury Inspector General for Tax Administration concludes that federal law is ambiguous on whether these workers qualify for a tax break based on earned income called the additional child tax credit.

Taxpayers can claim this credit to reduce what they owe in taxes, often getting refunds from the government. The vagueness of federal law may have contributed to the $4.2 billion in credits, the report said.

The IRS said it lacks the authority to disallow the claims.

Wage earners who do not have Social Security numbers and are not authorized to work in the United States can use what the IRS calls individual taxpayer identification numbers. Often these result in fraudulent claims on tax returns, auditors found.

Their data showed that 72 percent of returns filed with taxpayer identification numbers claimed the child tax credit.

The audit recommended that the IRS seek clarification on the law and check the immigration status of filers with taxpayer indentificaion numbers.

IRS officials, in response to a draft of the report, agreed to consult with the Treasury Department on the law. But they said they have no legal authority to demand that filers prove their legal status when the tax agency processes returns.

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.

ClevelandBronco
09-02-2011, 10:48 AM
Please call them illegal aliens.

Donger
09-02-2011, 10:53 AM
Please call them illegal aliens.

Non-legally participating migrant guest workers.

Amnorix
09-02-2011, 11:27 AM
errr...a bit confused. They can get refunds of Social Security taxes paid, even? That right? :spock:

mlyonsd
09-02-2011, 11:58 AM
Illegal Workers Used Tax Credit to Pocket $4.2 Billion, Audit Shows


Published September 02, 2011
| FoxNews.com


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 (http://www.treasury.gov/tigta/auditreports/2011reports/201141061fr.pdf) 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 (http://www.foxnews.com/topics/u.s.htm#r_src=ramp) 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 (http://www.foxnews.com/topics/politics/social-security.htm#r_src=ramp) 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.

http://www.foxnews.com/politics/2011/09/02/undocumented-workers-pocketed-42-billion-in-tax-credits-audit-shows/

vailpass
09-02-2011, 12:03 PM
Illegals are not a drain on our system, that is not why they are here. They are here to learn the language, contribute meaningfully while assimilating themselves into American society.
Really.

Donger
09-02-2011, 12:04 PM
errr...a bit confused. They can get refunds of Social Security taxes paid, even? That right? :spock:

Heck, I'm confused too. How can they get a refund via the child tax credit without filling? If they are filling, how are they doing that without a SSN?

Donger
09-02-2011, 12:04 PM
Illegals are not a drain on our system, that is not why they are here. They are here to learn the language, contribute meaningfully while assimilating themselves into American society.
Really.

Amen, amigo!

mlyonsd
09-02-2011, 12:06 PM
Heck, I'm confused too. How can they get a refund via the child tax credit without filling? If they are filling, how are they doing that without a SSN?
From the article I posted.....

Many of those people cannot obtain a Social Security (http://www.foxnews.com/topics/politics/social-security.htm#r_src=ramp) number, so to facilitate this the IRS hands out what are known as Individual Taxpayer Identification Numbers -- so illegal workers can file returns.

Donger
09-02-2011, 12:07 PM
From the article I posted.....

Yeah, I really should have read the article I posted...

Wage earners who do not have Social Security numbers and are not authorized to work in the United States can use what the IRS calls individual taxpayer identification numbers. Often these result in fraudulent claims on tax returns, auditors found.

Their data showed that 72 percent of returns filed with taxpayer identification numbers claimed the child tax credit.

The audit recommended that the IRS seek clarification on the law and check the immigration status of filers with taxpayer indentificaion numbers.

IRS officials, in response to a draft of the report, agreed to consult with the Treasury Department on the law. But they said they have no legal authority to demand that filers prove their legal status when the tax agency processes returns.

alpha_omega
09-02-2011, 12:35 PM
Awesome.

HonestChieffan
09-02-2011, 12:44 PM
IRS Cant disallow the claims? Huh? Why can the challenge honest people and put them through audit hell and not deal with this shit?

go bowe
09-02-2011, 02:57 PM
IRS Cant disallow the claims? Huh? Why can the challenge honest people and put them through audit hell and not deal with this shit?

you can thank congress for the vagueness of the law which opened this loophole that illegals are using...

RNR
09-02-2011, 03:03 PM
you can thank congress for the vagueness of the law which opened this loophole that illegals are using...

Because BOTH parties want them here~

go bowe
09-02-2011, 03:07 PM
Because BOTH parties want them here~

why is that, anyway?

2bikemike
09-02-2011, 03:36 PM
Yeah, I really should have read the article I posted...

Wage earners who do not have Social Security numbers and are not authorized to work in the United States can use what the IRS calls individual taxpayer identification numbers. .

Why is the IRS issuing Taxpayer ID numbers to Wage earners who do not have Social Security numbers and are not authorized to work in the United States?

KC native
09-02-2011, 03:51 PM
Why is the IRS issuing Taxpayer ID numbers to Wage earners who do not have Social Security numbers and are not authorized to work in the United States?

The tax man always wants his share.

go bowe
09-02-2011, 05:55 PM
Why is the IRS issuing Taxpayer ID numbers to Wage earners who do not have Social Security numbers and are not authorized to work in the United States?

to get them to pay income taxes...

but this refundable credit that illegals are taking advantage of needs to be stopped...

mlyonsd
09-02-2011, 06:03 PM
to get them to pay income taxes...
Yeah well you don't see that as a problem?

2bikemike
09-02-2011, 06:10 PM
I understand the Government wants its share of taxes. I asked it more in a rhetorical sense. The Fact that it is supposed to be the Federal Govt who is charged with enforcing Illegal immigration. Just ask Arizona and the handful of other states who are attempting to take matters into their own hands.

The feds know they are here working illegally and they are accomlices in breaking the law.

go bowe
09-02-2011, 06:58 PM
Yeah well you don't see that as a problem?

no, i see it as a good thing...

they are here enjoying the advantages of our system, they should help pay for it...

go bowe
09-02-2011, 07:00 PM
I understand the Government wants its share of taxes. I asked it more in a rhetorical sense. The Fact that it is supposed to be the Federal Govt who is charged with enforcing Illegal immigration. Just ask Arizona and the handful of other states who are attempting to take matters into their own hands.

The feds know they are here working illegally and they are accomlices in breaking the law.

yes, you could certainly look at it that way...

but imo it's better to have them pay into the system rather than not (at least until there's some rational solution to the illegal immigration problem)...

mlyonsd
09-02-2011, 07:32 PM
no, i see it as a good thing...

they are here enjoying the advantages of our system, they should help pay for it...Well then you see no problem with anyone lazy enough not to get a SS# that goes by a Taxpayer ID should have 75% witheld and paid into taxes no question ask, right?

HonestChieffan
09-02-2011, 07:36 PM
Load busses and take them back across the border.

RNR
09-02-2011, 08:18 PM
why is that, anyway?

To cut wages and benifits, to help compete with overseas labor~

mikey23545
09-02-2011, 10:58 PM
Please call them illegal aliens.

I think the term "KC Natives" is more descriptive.

KC native
09-02-2011, 11:17 PM
I think the term "KC Natives" is more descriptive.

Aw, how cute. So, how does my dick taste?

vailpass
09-03-2011, 09:21 AM
Aw, how cute. So, how does my dick taste?

Like a coyte's ass I'm guessing.