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Could this be true~Billions of dollars of tax fraud by illegal immigrants.

NBC13, Indianapolis, IN: Each spring, at tax preparation offices all across the nation, many illegal immigrants are now eagerly filing tax returns to take advantage of a tax loophole, using their ITIN numbers to get huge refunds from the IRS.

The loophole is called the Additional Child Tax Credit. It’s a fully-refundable credit of up to $1000 per child, and it’s meant to help working families who have children living at home.

But 13 Investigates has found many undocumented workers are claiming the tax credit for kids who live in Mexico – lots of kids in Mexico.

“We’ve seen sometimes 10 or 12 dependents, most times nieces and nephews, on these tax forms,” the whistleblower told Eyewitness News. “The more you put on there, the more you get back.”

The whistleblower has thousands of examples, and he brought some of them to 13 Investigates. While identifying information such as names and addresses on the tax returns was redacted, it was still clear that the tax filers had received large tax refunds after claiming additional child tax credits for many dependents.

Example:

"One of the workers, who was interviewed at his home in southern Indiana, admitted his address was used this year to file tax returns by four other undocumented workers who don't even live there. Those four workers claimed 20 children live inside the one residence and, as a result, the IRS sent the illegal immigrants tax refunds totaling $29,608."

Answer Question
 
grlygrlz2

Asked by grlygrlz2 at 12:19 PM on May. 4, 2012 in Politics & Current Events

Level 39 (106,530 Credits)
Answers (23)
  • I am totally NOT surprised. Of course they are.... around here, many of the illegals think we all owe them something.... not sure what but we do!

    amazinggrace83

    Answer by amazinggrace83 at 12:23 PM on May. 4, 2012

  • I am not surprised, there are some many loopholes to take advantage of. We and the government let them take advantage of us, so they keep doing it.
    leksismommy

    Answer by leksismommy at 12:27 PM on May. 4, 2012

  • I wouldn't be surprised myself. My husband is an IRS worker and he's told me many times about people trying to get away with things they aren't qualified for.
    tinamatt

    Answer by tinamatt at 12:27 PM on May. 4, 2012

  • If any of us tried it, the IRS would be up our asses so fast, out heads would spin
    leksismommy

    Answer by leksismommy at 12:32 PM on May. 4, 2012

  • I cannot believe this is true. You have to have a SOCIAL SECURITY NUMBER for each child. How does that work exactly? It does not make any sense. You pay NO taxes but you get money back. This has to be wrong otherwise I have 300 homeless families in the shelter who could certainly use the cash. No they are not Hispanic in fact in 5 years we have only assisted 2 Hispanic families in all 20 of our programs whereas the majority of the population we have served is 67% white and 32% AA.
    booklover545

    Answer by booklover545 at 12:34 PM on May. 4, 2012

  • I'm not surprised! They either need to apply for citizenship or go back home!
    Simplicity3

    Answer by Simplicity3 at 12:35 PM on May. 4, 2012

  • Booklover545, you can get a social security number or a Tax Id Number without being a citizen or a Permanent resident.
    leksismommy

    Answer by leksismommy at 12:36 PM on May. 4, 2012

  • No social security numbers are only issued to citizens.
    booklover545

    Answer by booklover545 at 12:46 PM on May. 4, 2012

  • Wouldn't surprise me at all.
    meriana

    Answer by meriana at 12:46 PM on May. 4, 2012

  • booklover, the news report from Indiana explains that even without a SS # our government is giving them money.
    Plus there is this report,
    "Many individuals who are not authorized to work in the United States, and thus not eligible to obtain a Social Security Number (SSN) for employment, earn income in the United States. The Internal Revenue Service (IRS) provides such individuals with an Individual Taxpayer Identification Number (ITIN) to facilitate their filing of tax returns. Although the law prohibits aliens residing without authorization in the United States from receiving most Federal public benefits, an increasing number of these individuals are filing tax returns claiming the Additional Child Tax Credit (ACTC), a refundable tax credit intended for working families"
    source:http://www.treasury.gov/tigta/auditreports/2011reports/201141061fr.html
    grlygrlz2

    Comment by grlygrlz2 (original poster) at 12:51 PM on May. 4, 2012

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