Judicial Watch • IRS Gives Illegal Aliens Billions In Refunds

IRS Gives Illegal Aliens Billions In Refunds

IRS Gives Illegal Aliens Billions In Refunds

APRIL 17, 2009

The Internal Revenue Service has allowed more than one million foreigners—many in the U.S. illegally—to improperly claim tax credits that they don’t qualify for and it will end up costing the government close to $9 billion. 

The best part is that the IRS knowingly permitted the exorbitant tax credits even though workers did not provide valid Social Security numbers on their returns, but rather the alternative Tax Identification Number (TIN) popular among illegal immigrants but not valid to work in the U.S. 

Furthermore, the IRS allows companies that employ foreigners to file taxes using TINs—rather than the required Social Security—even though the law forbids it. A lengthy report, made public this week by the Treasury Inspector General for Tax Administration, lays out the gory details of how the tax agency’s negligence rewards law breakers and deprives the nation of crucial funds. 

In one year alone, the IRS allowed nearly 300,000 U.S. companies to illegally report wages—of employees without valid Social Security numbers—totaling $9.5 billion. This in turn led the government to issue nearly $2 billion in illegal child tax credits to ineligible foreigners, many of them illegal aliens not authorized to earn wages in the U.S.

The inspector general points out that this creates an obvious problem since the payment of federal funds through this tax benefit provides an additional incentive for aliens to enter, reside and work in the U.S. without authorization, which contradicts federal law and policy to remove such incentives. 

The IRS has for years accommodated illegal immigrants, by creating the special TINs for foreigners about a decade ago and subsequently allowing millions to illegally file income taxes with the special numbers. For years the tax agency has looked the other way even after discovering millions of W-2 forms with names that don’t match a Social Security number.

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  • dlk42

    I do not understand how this can go on? when an america files taxes wrong the irs goes after them but we continue to allow illegals to not pay taxes then file? I work in an ER an I see on a day, cant speak english but they are all on medicade? whip out their card and the Americans hard earned taxes get to pay for it. If you are not an American citizen then your children should not be. I dont care if you come to my country to live but you had better follow an be accountible for what all Americans who work hard have to be accountible for. A friend for mine married an illegal, he worked in a factory in lafayette IN and payed NO taxes out of his pay check????? THAT IS COMPLETE BULL*&#!, maybe all American should stop paying taxes too?

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  • slelse

    The priest who thinks it is so great to help all the illegal at the expense of AMERICAN citizens is a disgrace to his profession. There are A LOT of AMERICAN citizens who make a heck of a lot less than $12.00 per hour. I am a senior on very low income and can’t afford dental care I need, does this priest and his church want to help me??? Our government needs to start taking care of our own citizens first and foremost and needs to rescind this child born here crap. The illegals take the risks to get here because they know they can get everything for free. We could balance our budget if we took care of our own countrymen first. How sad our founding fathers must be at the way we are giving away our country.




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