Report Highlights Income Tax Loophole that's Costing Taxpayers $4.2 Billion per Year
A report that aired on local television station WTHR in Indianapolis highlights an income tax loophole that is allowing illegal aliens to receive massive refunds from the IRS at the expense of U.S. taxpayers. According to the report, illegal aliens are filing false returns, claiming their own children, nieces, and nephews who, in some cases, don't even live in the United States to receive the alternate child tax credit. The cost to taxpayers is $4.2 billion per year.
Multiple bills have been offered in Congress to address the loophole - the most recent bill is the Child Tax Credit Integrity Preservation Act offered by Rep. Jack Kingston (R-Ga.) in the House and Sen. David Vitter (R-La.) in the Senate. The bills would require anyone who claims the child tax credit to have a valid Security number and a valid number for the child they're claiming on their tax return. Currently, tax filers can use an ITIN (Income Tax Identification Number) to claim the credit.
Watch the full report from WTHR.
*The video above is what has the story.
This is the e-mail that was passed on to me which is actually better than the site write up but has subscribers name which I don\'t think he wants disclosed.
NumbersUSA
>From Jim: We have a preliminary victory already! Thanks to your faxes and calls since last week, the House has passed a budget reconciliation bill that includes an amendment offered by Rep. Sam Johnson of Texas that prevents Additional Child Tax Credits from going to illegal aliens. But, we still have ahead of us the much more difficult task of making sure this amendment survives the Senate!
Travesty! The IRS Paying Illegal Aliens $1,000 Per Child In Other Countries!
Help Us Abolish These Unethical Tax Payoffs
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Dear ,
Are you outraged yet? The IRS knowingly enables illegal aliens to defraud American taxpayers. It\'s true: When an illegal alien has no Social Security Number, the IRS issues a special Individual Tax Identification Number (ITIN). The alien can then use that to file a tax return. But he\'s not paying taxes; he\'s getting your tax money!
Not only does he generally get back all the money he paid that year, he can ask $1,000 for each of a list of children he writes down on the tax return. They don\'t need to be his own children. They don\'t even need to live with him, or live in America at all!
The IRS will send him the money, no questions asked. The more foreign children he claims, the more money they send him. It\'s almost as if he was being thanked and rewarded for being an illegal alien, isn\'t it? It sounds too preposterous to be real, but it\'s exactly what\'s happening. And the Treasury Department Inspector General for Tax Administration says, \"the magnitude of the problem has grown exponentially.\"
Brock, we need to stop this. Every year the IRS sends $4.2 Billion to people who admit to being illegal aliens, even for children who do not live in this country. In fact, 72% of all illegal aliens who file a tax return using the tax number for illegal aliens (the ITIN) receive this so-called \"Additional Child Tax Credit.\" If we as a nation wanted to encourage more illegal aliens, could we devise something more enticing even if we worked at it a thousand years?
Don\'t you want to see this reward for crime abolished? Don\'t you want to save America billions of dollars? Finally, Rep. Jack Kingston of Georgia (H.R.3444) and Sen. David Vitter of Louisiana (S.577) have introduced bills that would close the loophole and shut off cold this gravy train for illegal aliens... if we can press Congress to act.
, please send a generous donation now, to allow us to do everything in our power to pass the reform bills and stop rewarding crime!
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I hope I\'m getting across that these child credits for foreign children claimed by illegal aliens are NOT a small problem. More than TWO MILLION ILLEGAL ALIENS receive these subsidies! So far, Congress couldn\'t care less. (If you want to hear all the facts about the ACTC, please look at the replay of our webcast from Thursday.)
Congress will only stop rewarding illegal immigration when they hear about nothing else. Please send us a donation, and we\'ll be able to yell a whole lot louder. Did you know less than 10% of NumbersUSA members even help us pay our bills? And in the last few months, it\'s been less than that by a good shot
So please, send a generous donation now, then go to your NumbersUSA Action Board and send the faxes on this subject, and sign the new petition. We\'re serious and committed. If you will help us, we will stop this thing.
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Jim Robb
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