Gov’t Audit: Illegal Immigrants Received $4.2 Billion in Tax Credits Last Year
- Posted on September 2, 2011 at 1:59pm by
Madeleine Morgenstern
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Illegal immigrants not authorized to work in the United States received $4.2 billion in tax credits from the IRS last year, almost quadruple the amount five years ago, a government audit found.
The Treasury Inspector General for Tax Administration (TIGTA) found an increasing number of illegals are claiming a refundable tax credit meant for working families when they file their taxes. Those who claim the credit either reduce what they owe or receive refunds.
According to TIGTA, which independently oversees the IRS, this essentially provides a huge incentive for illegals to come, live and work in the U.S.:
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.
The $4.2 billion amount is a dramatic increase from $924 million in 2005. According to the audit, 72 percent of people who used a taxpayer identification number to file taxes last year claimed the child tax credit, up from 51 percent in 2005. Comparatively, just 14 percent of those who filed regular tax returns last year claimed the credit.
According to the Washington Post, the explosion in claims is due in part to tax law changes that reduced the number of children required to claim the credit. Additionally, the American Recovery and Reinvestment Act of 2009 also made the refund easier to get.
In response to the report, the IRS agreed to consult with the Treasury Department but said it doesn’t have the authority to stop the claims, pointing out the law doesn’t require the taxpayer or their claimant child have a Social Security number to receive the credit. Legislative changes would be required for any real change.
(h/t Hot Air)
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Comments (169)
Constructionist
Posted on September 2, 2011 at 2:43pmI wish you would all stop being Tea Party racists. Illegal immigrants are vital to a healthy US economy. Eva Longoria said so, and she’s not only on TV, she’s a friend of President Obama!
LiveNation
Posted on September 2, 2011 at 3:56pmThat’s fine let them report their earnings on their ITIN, but strip away EVERY credit or deduction in the Tax Code unless they are a legal citizen. Should be real easy to slip this into the next jobs bill or immigration reform bill.
Report Post »LiveNation
Posted on September 2, 2011 at 3:59pmAudit them. And the ones that got refunds, visit that address with deportation orders.
Report Post »chazman
Posted on September 2, 2011 at 4:21pm… and I pay taxes for this? The level of corruption here is intolerable. I’m working two jobs and for what? I work just to pay bills, and the taxes I pay go to illegal aliens? I say politicians are illegal!!! I’m gonna start claiming max deductions from now on. I’m not going to pay one more red cent into our corrupt system!!!
Report Post »The blazing patriot
Posted on September 2, 2011 at 4:38pmI was aware that the Social Security office provided a number, but to foreign business people and people that were students and on a work visa. I was not aware that it is being given to people who’s residential status is illegal. It is my understanding that this number is given to them and they are allowed to contribute taxes. I am also aware of the loop hole where foreign citizens have a right to ask for that tax money given through work or expenses to be returned every month. Yet, I am puzzled. I would think that we have advanced enough in our computer technology, that these numbers would be flagged as different to those numbers of citizens. I am troubled that our IRS has increased in manpower yet fraud is allowed and unprevented. I approach this article with caution because it can be propaganda to motivate individuals to become outraged at illegal immigration instead of the agencies allowing for this fraud to occur. Shame on you Washington. The Propaganda continues.
Report Post »TheTruthPlease
Posted on September 2, 2011 at 6:35pmYes and so is unemployment AND food stamps…what a world!
Report Post »2+1=safety for you and yours…
Pro Deo et Patria
Morris
Posted on September 2, 2011 at 6:54pmThe more good things that Dictator Barack Hussein Obama our Muslim-in Chief,and his ,
Report Post »Mexican-Muslim Loving Administration do for the “ILLEGAL ALIEN INVADERS”,The more votes
Dictator Obama will get in 2012!
Dictator obama just signed another one of his Executive Orders,to give all “ILLEGAL ALIEN INVADERS”,the same rights in our labor laws for all ILLEGALS?
The “ILLEGAL ALIEN INVADERS”,Mexicans and Muslims, Now have more rights than “WE THE PEOPLE”,The American Citizens have!
Dictator Obama has just opened up the Flood Gates, There will be more Mexicans and Muslims
Sneaking into our America than ever before!
Dictator Obamas “FREE” Living for all, Come to America,And I Dictator Barack Hussein Obama,
will give you “FREE” Living, Health Care,Hud Housing, Food Stamps,And if you are a “ILLEGAL ALIEN INVADER”, and you have a baby on our American Soil,We will send your Child,don’t care
how many Children you have, America will pay for their “COLLEGE”, America what a Great place
to Sneak into for “FREE” LIVING, THANK YOU DICTATOr BARACK HUSSEIN OBAMA,FOR ALL
THAT YOU ARE DOING FOR ‘WE THE PEOPLE”,AMERICAN CITIZENS, THE TAX PAYERS
OF THE UNITED STATES OF AMERICA,,“WE THE PEOPLE” JUST LOVE TO HAVE YOU
SPEND ALL OF OUR TAX MONEY ON THESE “ILLEGAL ALIEN INVADERS”!
Wake the “HELL up America,Dictator Obama, George Soros, and The Muslim Brotherhood,are all
working together to destroy our America, George Soros is spending BILLIONS OF HIS OWN
MONEY TO
termiteteacher
Posted on September 2, 2011 at 7:05pmWhat crapola. You criminal sympathizers will say anything to support the “poor.” There is poor in the world that is not our direct responsibility. Other government bear the responsibility for their own people. We have a big enough challenge to handle our own poverty problems without taking on the entire world which increases our burden about 100 fold.
Report Post »loriann12
Posted on September 2, 2011 at 7:23pmAre you kidding me? My husband knows of illegal aliens that get hired as “independent contractors” so the boss doesn’t have to take out social security for them, and it’s up to them to claim how much they made.
Report Post »loadingmyclips
Posted on September 3, 2011 at 12:07amThese refundable credits should not be allowed for a return when the primary taxpayer had an ITIN or as far as I’n concerned if any of the dependants have an ITIN. Refund only the excess witholding after taxes are paid. ALSO amn ITIN doesn’t give the illrgal the right to work in this country.
Report Post »Jackers
Posted on September 3, 2011 at 8:57amWhen are our so-called political “experts” on both sides of the “lamestream” media going to start mentioning the 10,000-pound elephant in the room?
For all of their talk about joblessness, 8 million illegal aliens are currently working in the United States today. If our political “representatives” would simply mandate E-Verify nationwide, these jobs would open up virtually overnight; and half of our unemployed would become employed…
Report Post »UlyssesP
Posted on September 3, 2011 at 9:40amYeah she’s also a Kunt.
Report Post »Raphael
Posted on September 4, 2011 at 4:41amIf you go to a local grocery store here in Fallbrook,Ca. on a Friday afternoon, you will see a line of no less than 15 at a time cashing checks with a thumbprint. Not a word of any language spoken at the window! Ca. would not have any trouble with money if it would just apply the idea that illegal means not supposed to be here taking honest peoples work If there are Americans that won’t do those jobs, then they need to go home with the illegals and see just what it is that they should be thankful for and therefore willing to work or be destined to be traded for the illegals who do work! .
Report Post »shank black
Posted on September 8, 2011 at 1:32pmHealthy economy?
Report Post »sweathog1948
Posted on September 2, 2011 at 2:40pmThis really makes me mad. All the taxes the average American pays then the guys south of the border come in and get freebees, that we americans pay out in taxes. The poloticans talk about the rich paying more, how about not giving the freebees to illegals. No one ever talks about that.
I live in Oregon. My husband worked for the school dist. as a carpenter a few years back. There were 4 mexicans on the job. The 5 of them were talking one day and my husband asked how could they work in the U.S. if they were illegals? The mexicans laughed. My husband asked what was so funny? The mexicans told him for $100 they, the mexicans could get a drivers license, a ss#, and a green card.
It is about time that our government is ruled by laws and not how much money someone will give them to look the other way.
Report Post »Oldphoto678
Posted on September 2, 2011 at 2:57pmOh grow up! It‘s not as much about the government looking the other way as it is those businesses that you’re so happy to give tax breaks to looking the other way. Why don’t you spend more time wringing your ****** right wing hands about that?
Report Post »JRook
Posted on September 2, 2011 at 3:07pmSorry I can’t get past the Illegal alien status. What would be the point of giving them any kind of tax number or even collecting taxes…..THEY ARE NOT SUPPOSED TO BE HERE. Giving them the ITIN and letting them file taxes in and of themselves enables them. Time to use the companies and individuals who employ them to round them up and send them home. Let’s give them 30 or 60 days to comply on their own. After that fine the employers $250,000 per occurrence for every illegal worker they employ. And please don‘t tell me you can’t check on their immigration status. Geez, 75% of the time if you just ask for it that will be enough to spook them. Most employers that hire illegals know exactly what they are doing and if nothing else are also committing tax fraud.
Report Post »MightyInfantry
Posted on September 2, 2011 at 3:23pm@ oldphoto
How about you get a clue loser. The only reason these people aren‘t afraid to come here illegally is because our government doesn’t secure the border and there are no penalties when they are caught. In fact they get free meals, healthcare if they’re sick and a plane ride back home. If the government wasn‘t hell bent on creating so many regulations for businesses to comply with they wouldn’t be tempted to hire illegals. My friend is a border patrol agent and yes the majority of the problem is the government looking the other way. Most illegals aren‘t even processed when they are caught they are just put on a plane and sent back home they don’t even get a record of being caught. I’m sure that has nothing to do with it though.
Report Post »dadsrootbeer
Posted on September 2, 2011 at 3:28pmDon’t be mad about this story. This is what the democrats (progressives) want to do. They want income redistribution to minorities and it doesn’t even matter if they are U.S. citizens. Unions and minorities comprise their base. Any questions?
Report Post »Servant Of YHVH
Posted on September 2, 2011 at 3:29pm@oldphoto
Report Post »To begin with, I would have to say you‘re an idiot but I don’t want to insult idiots. Even the ones in the IRS who fraudently claim that they don’t have the authority to stop the claims which is dog doo doo. These people are illegal aliens and are thereby breaking the law. It doesn’t take any legislation garbage to keep from giving money to criminals. In fact they are breaking legislation by giving it to them.
sissykatz
Posted on September 2, 2011 at 3:30pmold photo
Is it really necessary to be so hateful and disrespectful when making a post?
Report Post »I don’t think so………
loriann12
Posted on September 2, 2011 at 7:26pmWhen they were in the heat of the debate over a balanced budget, and Obama threatened people on social security, military pensions and our active duty may not get their checks, did anyone notice he didn’t say a word about food stamps, or welfare, or free medical to illegals, or their free food and money? That’s his voting base. He cares nothing for the elderly (as evidenced by Obamacare, and if you haven’t read it I highly recommend it, but not if you have a weak heart).
Report Post »Obama Been Lauding
Posted on September 3, 2011 at 6:01am“We The People” need to “DEMAND” that our Federal Government enforce the laws!!!!
That means arresting “ALL” Illegal Aliens, regardless of how long they have been here!!!
Secure the Border, by whatever means necessary!!!!!
Fine all businesses $10,000 for every Illegal Alien, they knowingly hired!!!!
Confiscate Illegal Alien’s assets (we froze Khadafy’s)!!!!
Stop “ALL” entitlements, education, health care (except in emergency cases), Anchor Babies, etc.
Pool all confiscated assets together, and “Redistribute the (Illegals’) Wealth, by using their own assets to send them back (deport them) to where they came from!!!!
Use the fine moneys’ to pay for additional ICE, and Border agents!!!!
Unemployment would go down by 1-2 percent!!!!
If you add up everything that Illegal Aliens cost “We The People”, it would tally $1-$2 Trillion per year!!!
“ACT NOW, BEFORE IT IS TOO LATE”
Report Post »bhscpa
Posted on September 2, 2011 at 2:36pmWhat’s the unemployment rate for illegals who are willing to work? 4%?
Report Post »Canyonman5555
Posted on September 2, 2011 at 3:16pm41% of all unemployment checks issued in the US are to illegal aliens. I found several sites that confirmed this statistic. http://www.savage-productions.com/illegal_alien_contributions.html is just one site I found.
Report Post »JRook
Posted on September 2, 2011 at 3:17pmCareful that is the rational for eliminating the minimum wage, eliminating benefits, workers comp, safety precautions, etc.
Report Post »tinydd
Posted on September 2, 2011 at 5:42pmAny intelligent Liberal will tell you this is false, because Jose and Maria would never apply for any beneifts in the USA due to worrying about being deported. No food stamps, no medical and no money is EVER given to an illegal alien.
Jeez you people are stooopid.
Report Post »JRook
Posted on September 3, 2011 at 9:56am@tinydd Not sure who you were speaking to Tiger. But my comment referred to the Bachmann’s of the world who want to eliminate the minimum wage. And her supporters who claim that jobs are being given to illegal aliens because American workers want a living wage and seek reasonable benefits and safety protections.
Report Post »WhatsYerProblem
Posted on September 2, 2011 at 2:35pm“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.”
So why doesn‘t the IRS audit them and deport them if they don’t pay up? Oh yeah – ’cause then they’d be racists. Or they’d take away Democrat votes.
Report Post »abbygirl1994
Posted on September 2, 2011 at 2:32pmEvil secret combinations from evil men.. No wonder they want Obama threatens to shut down Social Security, SSI etc……………. its time to turn the tap off to illegals! And to you lawmakers.. take care of American’s.. not illegals who will stab you in the back the first chance of an uprising!
Report Post »OneFunR6
Posted on September 2, 2011 at 3:28pmThe Book of Ether – Chapter 8
16 And they were kept up by the apower of the devil to administer these oaths unto the people, to keep them in darkness, to help such as sought power to gain power, and to murder, and to plunder, and to lie, and to commit all manner of wickedness and whoredoms.
18 And it came to pass that they formed a secret acombination, even as they of old; which combination is most abominable and wicked above all, in the sight of God;
19 For the Lord worketh not in secret combinations, neither doth he will that man should shed blood, but in all things hath forbidden it, from the beginning of man.
Report Post »Marine 1
Posted on September 2, 2011 at 8:26pmONEFUNR6 …Exactly! It is an “awul situation” and people had better be waking up.
Report Post »godlovinmom
Posted on September 2, 2011 at 2:30pmWhen my husband and I go get a loan, file taxes, get a passport, whatever, I can not believe the information we have to provide on ourselves in order to do any of these things. Between taxes, mortgages, welfare, etc…illegals apparently only have to say they are illegal and it comes flowing in…whats up with that. My prayer is to see someone in the presidency that will take of this illegal immigration thing, cuz personally I’m sick of my government giving my money to non-Americans!!!!
Report Post »Stopit
Posted on September 2, 2011 at 3:03pmHow about sick of giving it to anyone.
Report Post »We don’t have any money!
Vechorik
Posted on September 2, 2011 at 3:13pm.and quit giving money to business as well!
Corprate welfare John Stossel http://www.youtube.com/watch?v=icS5eLWYv0w
Report Post »lizaz
Posted on September 2, 2011 at 2:29pmWho’s surprised?? These illegals are votes to the administration and now to CA as well. They only follow the laws that benefit them….the rest of us better follow ALL the laws. Illegal aliens are illegal and that will never change!
Report Post »Edct
Posted on September 2, 2011 at 2:33pmWe need to bring back “Operation *******” that Eisenhower started after WWII to give American’s returning from war jobs…now we must do it again to reduce our taxes since our incompetent government gives money to the illegal criminals and our whore politicians do nothing to stop it….not to mention that the illegal criminals bring in litters of new little brown cockroaches, drugs, crime, diseases, etc. that me and all other Americans have to deal with.
Report Post »noah2854
Posted on September 2, 2011 at 3:27pm@ EDCT You right that is what we all needs and the country will balance by it self .
Report Post »Edct
Posted on September 2, 2011 at 6:02pmIt was called “Operation Wetbacke” by Eisenhower…don’t change the word…you are changing history…grow up censors.
Report Post »TheTruthPlease
Posted on September 2, 2011 at 6:33pmEDCT, that’s the plan man…black and brown will rise up against the great white satan. The only thing SDS/weatherman were missing for the takeover in the 60′s-70′s was the pissed off white folk. ccomrade` obummer is taking care of that problem as we speak…upset with your government yet? Have a plan, or be caught dead without one. 2+1=safety for you and yours!
Report Post »Pro Deo et Patria
Uechi
Posted on September 2, 2011 at 2:29pmSo what’s the point of doing what my great grandparents did and come to this country legally. It looks like it is easier and more profitable, especially if you are Mexican, to slip in. Tax credits, free medical care, free elementary,middle, and high school education and then finish it off with a free college degree. I don’t know about you people but I had to work to get into a good college, not get accepted because I was a minority and illegal. My parents and I paid for my education I didn’t get it for free.i have no problem with helping the needy and less fortunate but not when they aren’t suppose to be here in the first place. Nothing but Marxist BS.
Report Post »Tickdog
Posted on September 2, 2011 at 2:28pmheads need to roll for this stupid crap.. jeezee!! sick of this!
Report Post »nptden
Posted on September 2, 2011 at 2:28pmYou have to hand it to the Commies. They sure know how to keep their fraudulent voters happy. Look what Jerry is doing for California. Our kids don’t get help for school, but illegals do.
Report Post »COFemale
Posted on September 2, 2011 at 2:28pmWhy am I not surprised. It is funny legal citizens can’t get help, but our illegals do. Shameful.
I am ready to kick any person, politiican to the curb who supports aid to illegals, while our legal citizens suffer at the hands of our own inept government.
Report Post »Spendstop
Posted on September 2, 2011 at 2:26pmHMMM, If I cheat on my taxes, I go to jail????
Report Post »loadingmyclips
Posted on September 3, 2011 at 12:01amNo. IRS will correct them and you will be up to your as* in federal tax debt!
Report Post »ZAP
Posted on September 2, 2011 at 2:25pmThey will sell their mother for a VOTE!
Report Post »MGB-CPA
Posted on September 2, 2011 at 2:30pmwrong … they’ll shoot their mother and steal from their kids and bankrupt their grandchildren. That’s all.
Report Post »gpk
Posted on September 2, 2011 at 2:25pmRound all illegals up and ship them back. Hell I have truck and think I could pack at least 25.
Report Post »DanWesson455
Posted on September 2, 2011 at 2:23pmHEY!! I’m not even illegal…I want some tax credits…. I’m a citizen so give me some relief….cripes I’m paying for all this “STUFF”. So let me have some of the “STUFF”. Not just the paperwork to keep sending Washington “MY STUFF”. Who in turn hands out “MY STUFF” to all those indigents that do not deserve “MY STUFF”. SO give back some of “MY STUFF” to me. Please.
Report Post »loadingmyclips
Posted on September 2, 2011 at 2:23pmI HAVE KNOWN THIS FOR Years. The illegals would use the additional child tax credit to reap thousands of dollars in refund monies each and every year!! Sometimes with TWO ITIN NUMBERS $4000, $5000bucks refunded, $40K in wages AND NOT A CENT PAID IN FEDERAL TAX!! W& I Division of the IRS was loaded with the maggots who want nothing more than to see the white middle fall. Redistribute ALL their wealth to the third world bas*ards!
Report Post »shazam3
Posted on September 2, 2011 at 4:19pmAnd you wonder who taught these illegals who can barely read? Ever notice the “I’ll do you tax signs” that pop up all over the city? Well they popup in the Illegal areas but in their own languages so the average person has no idea. These crooks, let the word out that there is money available and here’s how you do it. For this info these illegals maybe pay these crooks 1/2 of the payback, which is probably mailed the PO Box owned by the tax preparer.
Report Post »majorsco
Posted on September 2, 2011 at 2:23pmThis amounts to taxpayers paying illegals to come to the US so we can pay even more for them to get the benefits of citizena. These people violated US law! They are criminals! We don’t even do this for criminals who are citizens!
Report Post »PoliticalJunkieToo
Posted on September 2, 2011 at 2:22pmhttp://media.causes.com/1098660?p_id=179631924&s=fb_feed&ref=nf
ELABORATE WELFARE HOUSING PROJECT
Report Post »FedUpAlready
Posted on September 2, 2011 at 2:43pmI’m phyically sick looking at this, while I’m a veteran, and, retired recieving 219 a month SS of which they take out 110 for Medicare. If it weren‘t for my pension and 401K I’d starve.
Report Post »Vechorik
Posted on September 2, 2011 at 3:14pm…yep, and they’re putting SOLAR PANELS ON THEM in many locations.
Report Post »welovetheUSA
Posted on September 2, 2011 at 2:20pmYep…….we know. And trillons in social security as well……..how does this happen, how is their not a way to identify illegals? Tax payer money goes to these slime balls…………we can no longer sfford to support Mexico, period.
Report Post »Gonzo
Posted on September 2, 2011 at 2:33pmHeck, they pay for them to go to college in California and give them in state tuition in a lot of states. So, an American kid from another state pays more than a foreigner. Can‘t say anything or you’re a xenophobe, racist or both.
Report Post »Vechorik
Posted on September 2, 2011 at 3:17pm“We can no longer afford” is a good reason. Before it’s “you’re racist” if something is said about the financial insanity of America. But both parties do it. They‘re both handing out corporate welfare hand over fist and we don’t hear screams of alarm about that.
Report Post »8jrts
Posted on September 2, 2011 at 2:11pm“Those who claim the credit either reduce what they owe or receive refunds”
Report Post »So we taxpayers are paying some illegals to be here, as well as all the other perks…what a nation we are!! No wonder law abiding “citizens” are becoming obsolete.
HKS
Posted on September 2, 2011 at 2:16pmWhat will the government do when the only people left are illegals. Maybe one should consider renouncing citizenship, leave the country and sneak back in and get those freebies.
Report Post »MODEL82A1
Posted on September 2, 2011 at 2:11pmStories like this one make it seem all but certain that our Representative Republic is already well past the point of no return. It’s depressing as hell.
Report Post »moreteaplease
Posted on September 2, 2011 at 2:45pmI see it that way too. The damage that has been done to the Eagle is far to great and Obama is now trying to push it over the side.
Report Post »copatriots
Posted on September 2, 2011 at 2:09pmOh….that’s nice. So……do I have this right…..illegals file tax returns to receive tax credits when they don’t actually pay taxes. It just gets better and better. At least the IRS knows where they are if someone in the government ever wants to find those nice folks who are ILLEGALLY in the U.S.
Report Post »loadingmyclips
Posted on September 3, 2011 at 12:18amYou got it!! little or NO witholding during the year taken out. 40K in wages AND a 4 to 5 thousand dollar refund. Not bad huh?? OH did I mention that all their dependents are illrgal also!! or else they reside in Mexico because they all have ITIN’s too.
Report Post »drattastic
Posted on September 2, 2011 at 2:06pmI’m so sick of this crap !
Report Post »kickagrandma
Posted on September 2, 2011 at 2:06pmThat includes the illegal immigrant sitting in OUR HOUSE in Washington, D.C., does it not?
ADIOS folks. You need to go home now!
Report Post »Stuck_in_CA
Posted on September 2, 2011 at 2:05pmCongress could have a simple quick fix for this, IF they wanted to. Both parties are selling us out on this stuff. Tyranny!
Report Post »DanWesson455
Posted on September 2, 2011 at 2:25pmLove your moniker. I should have used STUCK_IN_NY What bookends we could have been!
Report Post »