Illegal Aliens claim BILLIONS in IRS tax credits for children living IN MEXICO and other foreign countries.
Back in the summer of 2014, when many of us were concerned about the number of illegal alien children crossing into the United States, crossthread42 asked an interesting question (one that may also have occurred to you):
One other thing that bothers Me… How does One, or a Family, ACQUIRE the MONIES to make the trip, MUCH less pay a “smuggler”, or Coyote, to get them across the Final push across the border? 3000. to (reports of) 20.000.00 Each? If it’s a FAMILY, just on average, we’re talking close to 50K for ONE FAMILY to Get here?? WHERE do they get this Money? If they are in POVERTY?
It was a very astute question, so I started looking around the internet, and found THIS. It is outrageous. There is no better word to describe it, and the IRS is doing nothing to stop it. In summary, as a byproduct of the IRS effort (giving them the benefit of the doubt) to collect taxes from illegal immigrants working in the United States, they created what is called an “ITIN”, or an Individual Taxpayer Identification Number. As defined by the IRS:
IRS issues ITINs to individuals who are required to have a U.S. taxpayer identification number but who do not have, and are not eligible to obtain a Social Security Number (SSN) from the Social Security Administration (SSA).
ITINs are issued regardless of immigration status because both resident and nonresident aliens may have a U.S. filing or reporting requirement under the Internal Revenue Code.
Individuals must have a filing requirement and file a valid federal income tax return to receive an ITIN, unless they meet an exception.
What has resulted is that many illegal immigrants are filing tax returns – not to pay taxes – but in order to qualify for a tax credit.
Who needs an ITIN?
IRS issues ITINs to foreign nationals and others who have federal tax reporting or filing requirements and do not qualify for SSNs. A non-resident alien individual not eligible for a SSN who is required to file a U.S. tax return only to claim a refund of tax under the provisions of a U.S. tax treaty needs an ITIN.
Other examples of individuals who need ITINs include:
• A nonresident alien required to file a U.S. tax return
• A U.S. resident alien (based on days present in the United States) filing a U.S. tax return
• A dependent or spouse of a U.S. citizen/resident alien
• A dependent or spouse of a nonresident alien visa holder
All ITIN applications are filed through the Internal Revenue Service ITIN Operation in Austin, TX.
As I said, the stated purpose for having an ITIN is so that someone not eligible for a Social Security Number can pay taxes, but that purpose has been subverted. This is what is actually happening:
The investigative team at Channel 13, WTHR in Indianapolis, continued their investigation throughout the summer of 2014, even sparking a Congressional investigation and a probe by the Inspector General of the United States. To see all six videos produced by WTHR, go to my YouTube Channel, irs fraud: http://tinyurl.com/hkpzy3y
The WTHR summary page for their Tax loophole investigation is here: http://tinyurl.com/7olgypo
What resulted from the investigation? WTHR followed up.
Following WTHR’s reports, TIGTA released a detailed audit calling on the IRS to make sweeping changes in its ITIN Processing Center.
The IRS agreed.
The agency announced late last year it would provide workers more training, time and tools to catch fraud; it would strengthen rules to make fraud more difficult; and it would review and revise policies to improve its overall operations.
When they checked back with their whistle blower in the ITIN Operation in Austin, Texas, they found that – although there were more strict rules in place – possibly fraudulent applications were still being approved due to a lack of training, and the pressure to process as many applications as possible to meet production requirements.
“They said all the right things, but most of it’s all a joke,” Antelis told Eyewitness News during a recent interview.
A year after WTHR aired its original investigation, senior investigative reporter Bob Segall returned to Austin to again meet with Antelis and other IRS tax examiners who work on the front lines at the ITIN Processing Center. Most of the workers are not impressed with the changes implemented by the IRS.
“It’s still a big scam going on,” Antelis said from his living room. “It’s still very easy to rip us off.”
The continued lack of training in Texas is having a huge impact in tax preparation offices all over the country.
“Not very much has changed, and that is really disappointing,” said a tax preparer in Indianapolis.
The accountant thought things would change after he saw WTHR’s investigation a year ago. He works for a tax service that serves illegal immigrants in Indianapolis, and he requested that Eyewitness News not identify him because his company did not give permission for him to speak with the media.
“I think it’s still important to speak up because what’s happening is wrong, and it should be a big concern,” he said.
He’s so concerned about tax fraud, the tax preparer has started warning his clients about the implications of filing a fraudulent tax return. And because 90% of his clients are undocumented workers, the bi-lingual accountant gives the warnings in Spanish to make sure his customers clearly understand they’re not supposed to claim child tax credits for family members who live in other countries.
But he says this year, hundreds of clients still decided to do it anyway.
“We asked them directly if the children live here or not. Most of the time they said, ‘No, they do not live here’ and that’s when we explained to them there’s a risk they could audit you,” the tax preparer explained. “But the clients’ attitude was ‘Why not? I have nothing to lose.'”
There is no will in the government to change the status quo. The powers that be want illegal immigration. The politicians see no upside to changing the way business is done.
These same people are the ones who administer the processing of the Syrian refugees coming into the United States, and who promise they will be able to tell the difference between a terrorist and a genuine refugee. Do you believe them? I don’t.
Record-breaking numbers of children sneaking across border
The flow of illegal immigrant children into the United States is expected to rise to record-breaking numbers in 2016 as deportations decrease, according to leading members of the Senate’s Judiciary Committee.
At least 20,455 unaccompanied minors have been caught during fiscal year 2016 along the U.S.-Mexico border as of last month, according to committee chairman Sen. Chuck Grassley (R., Iowa), who warned that if this trend continues, the number of illegal minors could eclipse a massive 2014 surge that strained the resources of the Department of Homeland Security and prompted investigations into the Obama administration’s handling of the issue.
While illegal border crossings surge, the number of children actually being deported from the United States is declining, senators said during a Tuesday hearing with senior Obama administration officials.
The hearing comes just a day after oversight officials disclosed that the Obama administration has lost track of scores of immigrant children, many of whom are being released from custody to individuals across the United States who have not gone through thorough background checks.
What’s Happening Today With ITIN?
According to THIS, the tax laws have changed:
Before the new legislation, the $3,000 amount for calculating the refundable portion of the credit was scheduled to increase to $10,000, adjusted for inflation, in 2018. Now, the threshold amount for determining whether a taxpayer is eligible for the refundable (or additional) Sec. 24 child tax credit is permanently set at $3,000 (not indexed for inflation), which has been the threshold since 2009.
Retroactive claims: One change the legislation makes is to prohibit retroactive claims of the child tax credit. It does this by preventing taxpayers from amending a return (or filing an original return) to claim the credit for any prior year in which the taxpayer or the qualifying child did not have an individual taxpayer identification number (ITIN). This means that taxpayers cannot file returns claiming the credit using an ITIN issued after the year for which the credit is being claimed. The effective date of this provision allows taxpayers to file their 2015 returns without regard to this rule if the returns are timely filed (Section 205 of the Act).
New penalties: Before the new legislation was enacted, there was no penalty for taxpayers who recklessly or fraudulently claimed the child tax credit. Now, the rules that already applied to false claims for the EITC also apply to the child tax credit. Individuals who fraudulently claimed the credit are barred from claiming the credit for 10 years. If they are found to have claimed the credit with reckless or intentional disregard of the rules, the bar applies for two years (Sec. 24(g) as amended by Section 208(a)(1) of Division Q of the Act).
We’ll see. Just because there is a law, doesn’t mean it will be enforced. As we have seen.