Illegal Aliens + IRS = Tax Fraud

George Rebane

There are over two million illegal aliens in America, overwhelmingly from Mexico.  Now it turns out that an additional draw for such illegals has been the ability to blatantly defraud the American taxpayer with the help of our compliant IRS.  The entire scheme involves filing the 1040 tax return using an IRS-created ITIN (Individual Taxpayer Identification Number) that was supposed to allow working illegals without an SSN to still pay taxes on their earned income.  (This stuff is hard to make up.)

Well, the damn thing backfired years ago when the illegals discovered this ‘loop hole’ (aka fraud) that allowed them to claim refunds for children supposedly living with them that were members of their larger families.  The refund is the Additional Child Tax Credit.  So tax returns with ITINs started being submitted by the hundreds of thousands and more, each with a list of kids on them who were nieces and nephews to pad the ACTC list on their 1040s.  Adding to this insult is that the kids don’t even live here, but are still back in Mexico.

The refunds are huge.  Individuals get back thousands of dollars apiece.  The total taxpayer bill comes to over $4.2B annually, year after year.  And no one at the IRS wants to fess up or talk about this fraud that has been known to them for years.  To show how dysfunctional our government is, even the US Treasury Department’s Inspector General has investigated and written reports about this abuse, and reported it to the IRS, all to no avail.  (more here)

None of the illegals feel bad about doing this because the ACTC is simply another commons added on top of the Great Commons of America which they already hold in contempt, and in which they live as fugitives from an inept and corrupt government headquartered in Washington DC.  (H/T to a correspondent.)

Comments

[billy T]

Think Obama should vote "present" on this one as well.

[Russ Steele]

I have seen several segments on Fox News on this fraud, but I have not seen any segments on ABC, CBS and NBC. That could be because I do not watch these unreliable news outlets that much. Have others seen segments on there networks? It appears that the public is not being informed, as we are not seeing the expected outrage? Or, it could be no one really cares.

[George Rebane]

That the IRS is ignoring the Treasury Department on this seems like it's either a sub rosa public policy or that the screw up is best left untouched for fear of unseating some IRS careers and spilling over to the politicians. Dumping $4.2B annually year after year is no small thing when it comes to national light. Cutting this off during Obama's election campaign would be a big no-no.

[billy T]

Russ, I have been railing about this for a few years now. Finally it makes the news and we act like this is something new. Any reform would "hurt the po people". Another pet peeve is the Earned Income Credit, aka the unearned income credit. Reagen passed it to help the working poor, but it only passed as the Democrats demanded the cash payouts be extended to people on welfare and people who work barely part time. Nobody wants to hurt the po folk and nobody cares. People on welfare do not have to declare the cash payouts and it does not count against their eligibility. Its like they earned it, lol.

[Douglas Keachie]

The Amerindians have a much more substantial claim to "Homeland" than the Mexicans do, but if AZ is going to continue behaving so badly, maybe we should the the place to Mexico, or trade it for Baja. Let the Mexicans decide who is and is not a citizen of the new "AZ"

http://www.usatoday.com/news/politics/story/2012-05-19/hawaii-arizona-obama-birth/55070008/1

[George Rebane]

DougK 1014am - There seems to be point in your comment that is trying come out, can you help it a little more to do so? I don't know whether you're talking about AZ's illegal alien law that mirrors the fed's, or about its right to confirm the qualifications of candidates it puts on its ballots from something more than fond memories of conversations with officials in other states.

One wonders why this President is so secretive, what is there to hide, can't he provide some documentation of his past that doesn't look like it's been photoshopped by a sophomore, or a history that isn't a fabricated "composite", or denied relationships that are obvious lies on the face of it??? What on earth does the man have to hide?

And 'He's hiding nothing' coming from his acolytes is not very convincing answer for the majority of Americans. It just keeps the pot boiling. If he can turn off the heat by providing an open record of his past, that would embarrass the doubters and put them in their place once and for all, then why doesn't he just do that?

[Douglas Keachie]

Support of President Obama on birth certificate issue

Bachmann had never been part of the so-called birther movement but had said President Obama could resolve the dispute by producing the his long-form birth certificate. In April 2011, after Obama released the certificate,[192] Bachmann was asked about the issue on Good Morning America by George Stephanopoulos. She said that its release "should settle the matter", that "I take the President at his word", and that "We have bigger fish to fry"

Resolution Proclaiming Hawaii Obama's Birthplace Passes House Unanimously

~ http://www.huffingtonpost.com/2009/07/27/house-to-consider-counter_n_245741.html ~

I guess the House of Reprentatives represents the "minority of Americans" who feel it is a done deal?

"And 'He's hiding nothing' coming from his acolytes is not very convincing answer for the majority of Americans." ~George Rebane~

You are a birther? I'll be damned! Do you believe in Astrology too?

[Douglas Keachie]

If you clicked the link, you see that was about AZ gov officials being birther challenged. If you've read my past posts about racial profiling in traffic stops, in particular the recent one where I suggested national ID cards and tax credit for those pulled over who were legit USA citizens, you'd know what aspects of AZ enforcement of their version of the law I am concerned with. In a nutshell, which am I concerned with?

BOTH.

[George Rebane]

DougK 1230pm - The Left's definition of 'birther' is anyone who does not believe that Obama has presented sufficient bona fides to establish his place of birth. The allowance for agnostics on the matter is not permitted (the same goes for notions such as 'racism', 'discrimination', etc). I consider myself an agnostic on the matter, and await something other than Congressional resolutions - especially a one liner about Obama entered into a resolution celebrating Hawaii's 50th anniversary in the Union, which itself caused 55 members, of which 35 were Democrats, to abstain. Apparently there are also a considerable number of Congressional agnostics on the matter.

[Todd Juvinall]

Wasn't Obama born outside the twelve mile zone? LOL!

[Juanita Gilliam]

History would tell us many things. If we recall the past, we can really say that Mexicans were once the settlers of the place. However, we believe that we should not repeat history and we should not live with the past.