IRS loophole hands out billions of dollars to illegal immigrants

Tuesday, May 07, 2013 by: J. D. Heyes
Tags: IRS, illegal immegrants, loophole

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(NaturalNews) The U.S. government is broke and $16 trillion-plus in the hole, spending hundreds of billions of dollars more per year than it collects in revenue, because Washington, collectively, is addicted to spending.

One thing lawmakers and President Obama love to spend money on is the cultivation of constituencies. An ever-widening base of constituents, you see, translates into votes, and votes into power. And these days, the most favorite constituency in the nation's capital is the illegal immigrant population, estimated to be anywhere from 11 million to 14 million people, depending upon whose figures you use.

That our elected leaders would even consider currying favor with people who aren't even in the country legally tells you how far we've come from our founding principles, but our elected body is essentially unresponsive and largely arrogant; after all, how many incumbents have served for a decade or more? They know they can get away with this.

Still, the details of just how much taxpayer money they are spending on those who have entered our country illegally is as astounding as they are angering.

'...and you're paying for it'

According to WTHR's local news team, which has done some good, old-fashioned investigative reporting, "millions of illegal immigrants are getting bigger tax refunds than you are."

The reason? "A massive tax loophole that costs billions, and you're paying for it," evening news team anchor Andrea Morehead said recently.

"The IRS (Internal Revenue Service) is simply handing out your tax dollars to people who don't even live here," she said.

As part of its report, the news team interviewed a "long-time tax consultant" - who asked not to be identified - who said he was convinced that a major "fraud" was taking place.

"There's not a doubt in my mind there's a huge fraud taking place," he told the news team's investigative reporter, with his voice altered and his physical appearance blacked out.

The consultant, who approached WTHR to blow the whistle on what he had discovered, described to the news team "a nationwide problem with a huge price tag."

"We're talking about a multi-billion dollar fraud scheme here that is taking place," the consultant said.

"The scheme," said Bob Segall, the station's investigative reporter, "involves illegal immigrants who are filing tax returns."

Segall noted that everyone who earns money in the U.S. "is required to pay taxes." He says the IRS even requires that for those working in the country illegally.

You can't make this stuff up.

Since illegal immigrants are not supposed to have a Social Security number, the nation's tax collection agency created what is called an "ITIN" - an Individual Taxpayer Identification Number.

And "while that may have seemed like a good idea," Segall says, "it's now backfiring in a big way."

Says the tax consultant: "I think the public needs to know about this," adding that his office has been inundated with illegal workers who have figured out a loophole, which allows them to get very large refunds - the news team showed amounts in excess of $14,000 from the IRS.

'It's just so easy it's ridiculous'

What is the loophole? The Additional Child Tax Credit, which is meant to help families who have kids living at home.

But, the news team found, many illegal aliens are claiming the credit for kids who live in Mexico. How's that for hubris?

"We've seen 10, 12 dependents - most times nieces and nephews - on these tax returns," said the consultant.

"The more you put on there, the more you get back," he said, adding that he has thousands of examples to back up his claims.

"I can bring out stacks and stacks," he said. "It's just so easy it's ridiculous."

Segall went onto to interview an alleged illegal immigrant, whose identity was not shown as well, who admitted that yes, he too had taken advantage of the loophole.

And here's the worst part of this entire contemptible situation: The IRS knows what's going on - and has known for years - but is doing nothing to fix the problem. IRS officials say that Congress needs to act to fix it.

See the remainder of this outrageous report here.

Sources for this article include:

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