Illegal Immigrants Paid $4.2 Billion to Stay in U.S. Last Year with Bigger Tax Refunds than You.

A bombshell report released in October 2013 by the Center for Immigration Studies (CIS) fellow David North reveals that the Treasury sent a whopping $4.2 Billion in Additional Child Tax Credits (ACTC) to the families of illegal aliens in 2012.

Reporter Bob Segall of WHTR-TV ran his first report on the scam on April 26, 2012. He reports that 2 million illegals are currently receiving the ACTH. Since illegals are not supposed to have social security numbers, the IRS created an individual taxpayer identification number (ITIN) under which they can file taxes.

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The Loophole

Illegal aliens are using the ITIN to file for the ACTC. Not only to their own children however but to nieces and nephews still living in Mexico!

As the Segall report indicates, the home they visited had 20 children claimed as credits associated with it. In reality, only one child lived there. The other 19 were for nieces and nephews living in Mexico claimed by 4 other undocumented workers who didn’t even live there! As a result the IRS sent the illegal immigrant families tax refunds totally $29,608.

The response of the illegal worker Segall interviewed to the question, “There’s some people who say they shouldn’t be getting that money for people who don’t live in the United States?”

“If the opportunity is there and they can give it to him, why not take advantage of it?”

Of course, the fact that it is legalized theft would never enter his mind I am sure.

The Estimated Results- Hundreds of Billions!

A tax consultant interviewed for the report stated that he had contacted the IRS regularly about this issue, but had no response. While going through the returns he noted, “Here is a return right here: We’ve got a $10,300 refund for 9 nieces and nephews.” On another return he noted, “We’re getting an $11,000 refund on this tax return. There’s 7 nieces and nephews.” Then pointing to another set of documents he said, “I can bring out stacks and stacks. It’s just so easy it’s ridiculous.”

The CIS report, Paying Illegals to Stay, notes that the number of illegal filers has gone from 796,000 in 2005 to 2.3 million in 2010. The Inspector General (IG) estimates that somewhere between $110 billion and $132 billion (with a B) has been given away in improper Earned Income Tax Credit payments in the last decade. Now, guess who is on the hook for all that money?

So What is the IRS Doing About It?

Well, the initial response of IRS officials to the IG was that the program was too complicated to administer correctly.  However they stated that even  if it were less complicated, they would not want rigorous enforcement measures to discourage legitimately qualified people from applying for the credit.

The most recent report from the IG on 8/28/13 indicated responses from the IRS that they were in agreement with the need to reduce improper payments.

However, the title of the report is “The Internal Revenue Service is Not in Compliance With Executive Order 13520 to Reduce Improper Payments”

Executive Order 13520 requires the  Treasury Inspector General for Tax Administration to “assess the IRS’s compliance on an annual basis.” The IG conclusion in this latest report:

“The IRS has made little improvement in IRS reported the applicable improper payments since being required to report estimates of these payments to Congress.”

So while the IRS is talking a better game, it obviously isn’t walking the walk as they say. The executive order was issued on November 20, 2009, nearly 4 years prior to the latest report. So look for little progress from the IRS and billions more to be added to the plate of the citizens.

Where is All of This Leading?

As previously noted, a civilization in decline like the Roman Empire for example, increases its welfare state on the way down. Rome also expanded its warfare and debased its currency as well. Anyone noticing those characteristics in our present nation? Can one really doubt that America is on the road to ruin? I certainly would not call trends like this progress, would you?

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