In a lengthy piece posted at CNS News, it has been found that the IRS consciously decided to ‘legalize illegal aliens’ for tax purposes 17 years ago. This means that foreigners are getting the same tax benefits as U.S. citizens.
The most debatable aspect of this move regards refundable child tax credits. CNS News reports :
The question of whether to legalize illegal aliens and put them on a pathway to citizenship may be the most controversial legislative issue facing the U.S. Congress this year.
But, according to the Treasury Inspector General for Tax Administration (TIGTA), seventeen years have already passed since the Internal Revenue Service made its own “policy decision” to “’legalize’ illegal aliens.”
That policy, made those many years ago, not only determined that the IRS would treat illegal aliens the same as legal immigrants and U.S. citizens, but also that the IRS would not hand over to federal immigration authorities information about employers who appeared to be hiring large numbers of illegal aliens and about illegal aliens who filed false documents with the IRS.
As a result of the IRS’s policy, by 2010, according to TIGTA, the service was paying out $4.2 billion in refundable “Additional Child Tax Credits” [ACTC] to illegal aliens. In 2011, according to TIGTA, the IRS would pay more than $46 million in tax refunds to what theoretically were 23,994 illegal aliens who all used the same address in Atlanta.
The upshot of this change of “policy” by the IRS means that the federal government is subsidizing illegal immigration using taxpayer money:
“We believe legislation is needed to clarify whether or not refundable tax credits such as the ACTC may be paid to filers without an SSN,” said the 2009 [inspector General] audit report. “Such a legislative change could result in cost savings to the federal government of $1.8 billion annually ($8.9 billion over 5 years). As it now stands, the payment of federal funds through this tax benefit appears to provide additional incentive for aliens to enter, reside, and work in the U.S. without authorization, which contradicts federal law and policy to remove such incentives.”
On July 7, 2011, TIGTA published yet another audit report revealing that President Obama’s economic stimulus law had made the ACTC more generous and that the IRS had paid out $4.2 billion to illegal aliens through this refundable credit in 2010. The title of this audit report: “Individuals Who Are Not Authorized to Work in the United States Were Paid $4.2 Billion in Refundable Credits.”
In July 2012, TIGTA published a report on an audit it had initiated because two IRS employees had alleged “that IRS management was requiring employees to assign Individual Taxpayer Identification Numbers (ITIN) even when the applications were fraudulent.”
The qualifications for the ACTC are listed here . The second component is very interesting indeed.
Qualification – A qualifying child for this credit is someone who meets the qualifying criteria of six tests: age, relationship, support, dependent, citizenship, and residence.
Maybe if the IRS spent less time auditing tea party and conservative groups, they could catch more unlawful use of of the U.S. tax code by foreigners?