Posted on April 16, 2009

Illegal Immigrants Cashing in on Federal Tax Credits, Study Shows

Kevin Mooney, Washington Examiner, April 16, 2009

Large numbers of illegal immigrants file tax returns using phony Social Security numbers to cash in on the federal Earned Income Tax Credit, thanks to lax government management, according to the author of a new study.

“Technically, only people authorized to work in the U.S. are eligible for the credit, you need a valid Social security number,” said Ed Rubenstein, a financial analyst and economist, speaking at a news conference Tuesday at the National Press Club.

“But identity theft, stolen Social Security numbers, and other scams effectively nullify the restriction. As a result, illegal aliens actually receive the EITC at even greater rates than legal immigrants,” Rubenstein said.

The IRS makes little or no effort to verify the authenticity of Social Security numbers, or existence of dependant children, Rubenstein said.


Illegal immigrant households are more than three times as likely to receive EITC than native-born American households, Rubenstein said. Higher fertility rates evident among the immigrant population accounts for this disparity, he said.


Rubenstein’s report “The Earned Income Tax Credit and Illegal Immigration: A Study in Fraud, Abuse and Liberal Activism” is available here..