If you are like most Americans, sitting down to do your taxes feels more like an act of torture rather than doing your civic duty. You pour over receipts and often times even hire a tax professional to find the most money that you can legally deduct from your taxes. When it is all over, you are likely shocked at how much of your hard earned income went to the government. Unfortunately for the hardworking American citizens and legal immigrants in this country, tax day is pay day for illegal immigrants.
That’s right! Last week, an Indiana NBC-affiliate broke this story detailing how undocumented workers have found a tax loophole and created tax fraud scheme that allowed them to deduct and walk away with over $4.2 BILLION in Federal tax dollars in 2010 alone, according to the US Inspector General. How did this happen?
It seems that the current IRS tax code allows illegal aliens to claim refundable tax deductions for dependent children; there is no agency oversight to discern whether or not these dependent children exist or if they legally reside in the United States. The United States Inspector General has relayed this information to the IRS but the IRS claims their hands are tied until Congress acts. These illegal aliens are getting FREE money from the government and YOU are stuck holding the bill.
Here’s the skinny: even though undocumented workers are here illegally, the IRS still requires that they pay taxes. Since illegal aliens don’t have social security numbers, the IRS provides them with an Individual Taxpayer Identification Number (ITIN) which allows them to file and pay the taxes that they owe and receive refund checks. The problem lies in the deduction known as the Additional Child Tax Credit (ACTC). This allows for taxpayer to deduct a refundable $1,000 for EACH child they claim as a dependent. There is no agency oversight by the IRS to check to make sure that these children legally reside in the US. Further, those claiming these dependent children aren’t even required to be the biological or adopted parents; as the NBC-13 expose proves, illegal aliens are taking deductions for nieces and nephews living in other countries. One must wonder if these children actually exist and how many different undocumented workers claim the ACTC for each specific child. If you are angry, you might want to take a deep breath because what you just read was the GOOD news; the bad news is even more infuriating!
As stated earlier, each undocumented worker is eligible to receive a REFUNDABLE $1,000 tax credit. Why is the word “refundable” so important? It means that if the taxpayer does not owe any taxes, the government sends all REFUNDALBE amounts in a check to the taxpayer. Therefore, if an undocumented worker claims 4 dependent children but claims that he/she doesn’t owe any taxes, the government will send that illegal alien a check for $4,000 TAX FREE. If they claim 8, they get $8,000 tax free. Since the IRS does not verify the existence or legal residency status of these children, these illegal aliens are walking away with $4.2 billion a year of YOUR hard earned money with this scam!!!
This ACTC scheme might almost be funny if the government were not allowing illegal aliens to steal our hard earned tax dollars. The NBC-13 expose shows one small trailer home where five undocumented workers CLAIM to reside with their 20 total dependent children. But here’s the rub, the illegal alien who actually DOES reside in the trailer went on the record (anonymously) and stated that only he and his one daughter live in the trailer unit. It would seem the other four illegal aliens use the address simply as a place to pick up their ill-gotten IRS checks.
The NBC-13 expose proves that the tax code is broken and must be reformed; it also displays the fact that our country has become ethically bankrupt. We have a tax system that incentivizes a fraud scheme; this fraud scheme incentivizes coming to the United States illegally. All of this to the detriment of citizens and LEGAL residents of the US whose tax dollars ultimately fund this illegal alien tax day pay day. It is time to fight back. Demand a full investigation into the matter by Congress!