It isn’t bad enough that the federal government doesn’t secure the American border, there is a tax loophole that allows illegal aliens and other nonresidents in the United States to get large tax refunds costing the American people billions of dollars!
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 (Individual Taxpayer Identification 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.”
“Here’s a return right here: we’ve got a $10,3000 refund for nine nieces and nephews,” he said, pointing to the words “niece” and “nephew” listed on the tax forms nine separate times.
The problem is increasing arithmetically. In 2009, ITIN tax filers received about $1B dollars in additional child tax credits, but last year the illegal alien tax credit cost the American taxpayers $4.2B dollars.
One of the Indiana workers said four other illegal aliens used his home address and claimed 20 children lived in the home. The IRS sent them tax refunds of $29,608. Only one child was observed living at that address and the illegal alien even admitted off camera that the remaining children lived in Mexico!
He later explained that not only did the kids not live at the residence but have never even visited the United States. When asked how one would receive tax credits in violation of the IRS rules, the worker said, “If the opportunity is there and they can give it to me, why not take advantage of it?”