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An occasional Alexandria commenter has just forwarded this video to me from Indianapolis TV station WTHR.

Their report documents illegal aliens filing for refunds under their Individual Taxpayer Identification Numbers and using the Additional Child Tax Credit to claim additional refund dollars on the basis of children living abroad, including nieces and nephews.

The report documents individual refunds ranging from $11,000 upward and estimates the scale of the fraud nationwide to approach billions of dollars in ineligible refunds.

Update: The Treasury Inspector General for Tax Administration’s Final Report issued on July 7, 2011, glimpsed briefly onscreen later in the video.

H. M. Stuart
Alexandria

7 Responses to “Multi-billion Dollar Illegal Alien IRS Tax Fraud Loophole”

  1. Dave Francis says:

    No discrimination or racial profiling from the Constitutional TEA PARTY, but are against the illegal immigration occupation from any person, from any country who came here without permission. The TEA PARTY comprises of small and large chapters throughout America of every nationality, every race and every religious denomination? Replace all lawmakers, Governors, Mayor, police chiefs and all elected administrators in every federal, state and municipal agency that doesn’t have the same judgment of the Tea Party leaders. If you cherish your freedoms from the corruption in Congress that will benefit all of us, we need a balanced tax code with no subsidies, loopholes for corporations, sugar industry or anybody else; a right to drill on the Peoples public lands and sea with its massive reservoirs of oil, natural gas for the consumer and to alleviate our out-of-control 16 trillion dollar deficit. No more government bail outs for the friends of the Oval Office. Begin ‘Attrition through Enforcement’ by enacting E-Verify to eject illegal aliens from the workplace. Complete coverage of ‘Secure Communities” for every state to locate the foreign criminals. Throw out all the profiteering lawmakers and clean house; put familiar TEA PARTY leaders in their place. Introduce a waste and reduction law, which begins the process of shrinking the size of government. Then according to a recent study by the Heritage Foundation another Comprehensive Immigration Reform package, better known as AMNESTY, would cost taxpayers an estimated $2.6 Trillion dollars to process and complete. Another giant price tag we cannot accept. Currently the 50 states have unfunded mandates of supporting foreign nationals of $113 billion dollars annually and counting.

    Voters need to insist from Congress, specifically from GOP House speaker, John Boehner of Ohio and Dave Camp of Michigan, as the Chairman of the powerful Ways and Means Committee to stop blocking the 50-state E-Verify bill. Call the Washington switchboard at 202-224-3121 Washington, DC. For further truth, not propaganda on this crisis matter, check with NumbersUSA website, where even Congress consults on immigration matters. Arizona dared to go up against the feds, who are a controlling mega-monster that are to blame for not enacting strict immigration laws. If entry by stealth as visa overstays are or just slipping past the agents at the border was classified as a felony, they numbers of people coming here would have been minimal. Now the U.S government has 20 million plus to contend with and so the best they can do, is antagonize individual states trying to protect their citizens from unfunded mandates. Arizona and a very few other states are ‘carrying the can’ for states as with Sanctuary States like California, Nevada, Colorado who have too much of a mushy backbone to join the fight? Also in the news are illegal aliens stealing $4-2 billion dollars in taxpayers’ money, owing to a gaping loophole in the child tax dependency credit.

  2. steve2 says:

    From Michael Barone.

    “Pew’s demographers have carefully combed through statistics compiled by the U.S. Census Bureau, the Department of Homeland Security and the Mexican government, and have come up with estimates of the flow of migrants from and back to Mexico. Their work seems to be as close to definitive as possible.

    They conclude that from 2005 to 2010 some 1.39 million people came from Mexico to the United States and 1.37 million went from the U.S. to Mexico. “The largest wave of immigration in history from a single country to the United States,” they write, “has come to a standstill.”

    The turning point seems to have come with the collapse of housing prices and the onset of recession in 2007. Annual immigration from Mexico dropped from peaks of 770,000 in 2000 and 670,000 in 2004 to 140,000 in 2010.

    As a result, the Mexican-born population in the United States decreased from 12.6 million in 2007 to 12.0 million in 2010. That decrease consisted entirely of Mexican-born illegal immigrants, whose numbers decreased from 7 million in 2007 to 6.1 million in 2010.

    Mitt Romney has been ridiculed for saying that illegal immigrants should “self-deport.” But that seems to be exactly what many of them have been doing. The U.S. government has been sending back more illegals lately, but most of the flow to Mexico has been voluntary.

    The Pew analysts hesitate to say so, but their numbers make a strong case that we will never again see the flow of Mexicans into this country that we saw between 1970, when there were fewer than 1 million Mexican-born people in the U.S., and 2007, when there were 12.7 million.”

    We can spend billions trying to fix a disappearing problem, or not. There is actually evidence that border enforcement increases the number of illegals in the country.

    http://paw.princeton.edu/issues/2012/04/25/pages/5761/index.xml

    “Much of what Americans think they know about illegal immigration is wrong, and that makes Douglas Massey *78 angry. Massey is the Henry G. Bryant Professor of Sociology and Public Affairs and director of Princeton’s Office of Population Research. He also founded, and for the last 30 years has run, the Mexican Migration Project (MMP), which has compiled a unique database of ethnographic information about border crossing: who migrates, where they come from, where they go, and how that has changed over time.

    The MMP’s reports are freely available to anyone through its website, http://mmp.opr.princeton.edu. But statistics can be sterile things. Get Massey going, and one gets an earful about the true state of affairs along the border. To wit:

    We are not being flooded with illegal Mexican migrants. The total number of migrants from Mexico has varied very little since the 1950s. The massive influx many have written about never happened.
    Net illegal migration has stopped almost ­completely.
    Illegal migration has not stopped because of stricter border enforcement, which Massey characterizes as a waste of money at best and counterproductive at worst.
    There are indeed more undocumented Mexicans living in the United States than there were 20 years ago, but that is because fewer migrants are returning home — not because more are sneaking into the country.
    And the reason that fewer Mexican citizens are returning home is because we have stepped up border enforcement so dramatically. ”

    Steve

    Steve

    • JWD says:

      Steve…If Pew is using Census figures, they are woefully wrong…The 2010 Census saw over 15,000,000 undeliverable or un-opened returned forms across the country, all from valid addressed. Census Enumerators followed up on those forms, but electronic mail from those in the field regarding those forms showed mostly disinterest by the recipient of the form, or they were turned away at the door..Not really a good way to gather information on the illegal population…Look around at Home Depots, Lowes, and other retailers, and you will get a better idea of how many we have in this country verses how many were here prior to 2007…

  3. H. M. Stuart says:

    For my own part, this $4 billion-plus a year in tax fraud by illegal aliens, so unimpeachably reported above, year in and year out, well known and documented at the highest levels of government, is one of the most astonishingly brazen things I’ve heard of to date, and yet until today I had never heard of it.

    H. M. Stuart
    Alexandria

  4. Wired Sisters says:

    This posting is a fascinating salad of apples and oranges. Even illegal immigrants are entitled to a refund of tax monies withheld from their income which exceed the taxes they owe, unless IRS wishes to declare a policy of robbing anybody they don’t like. EITC is a whole other matter.

  5. JMK says:

    “This posting is a fascinating salad of apples and oranges. Even illegal immigrants are entitled to a refund of tax monies withheld from their income which exceed the taxes they owe, unless IRS wishes to declare a policy of robbing anybody they don’t like. EITC is a whole other matter.” (WS)
    .
    .
    Migrant workers work “off-the-books” and thus pay NO taxes!

    Things like the EITC etc., are clearly designated as “for citizens ONLY.” It would actually require a rather radical change in our foreign aid policies to make the EITC available to illegal/undocumented workers.

    ILLEGAL immigration is intrinsically linked to migrant work, making it PRIMARILY “an illegal employer issue” and NOT really an “illegal immigration issue” – companies use very low-paid migrant workers to circumvent minimum wage laws, etc.

    That’s the hold up on E-Verify…it works TOO well! It actually catches many of those who use cheap migrant labor and punishes such illicit employers.

    The employers have a much better funded lobbying effort than do low-skilled American workers.

  6. JWD says:

    It is absurd to think that our Congress is letting this happen. That $4.2 Billion could be used in so many ways to help legal citizens of this country…When we have so many of our own children going to bed hungry, why are we subsidizing the children of illegals living in Mexico…President Calderon and his cronies should either start taking care of their own people, or sterilize the whole population of Mexico…Mexican men use having children as a badge of machoism, fathering many more than they could possibly support. Now our wonderful government is saying that is okay, and funding them to keep their women barefoot and pregnant…This fraud needs to come to an end…Everyone needs to contact their Congressman or Congreesswoman to vote to outlaw this practice.