Undocumented Workers Got Billions from IRS in Tax Credits, Audit Finds

Lisa Rein, Washington Post, September 2, 2011

The Internal Revenue Service allowed undocumented workers to collect $4.2 billion in refundable tax credits last year, a new audit says, almost quadruple the sum five years ago.

Although undocumented workers are not eligible for federal benefits, the report released Thursday by the Treasury Inspector General for Tax Administration concludes that federal law is ambiguous on whether these workers qualify for a tax break based on earned income called the additional child tax credit.

Taxpayers can claim this credit to reduce what they owe in taxes, often getting refunds from the government. The vagueness of federal law may have contributed to the $4.2 billion in credits, the report said.

The IRS said it lacks the authority to disallow the claims.

Sen. Orrin Hatch (R-Utah), ranking member of the Senate Finance Committee, On Friday announced plans to examine the refunds.

“The disconcerting findings in this report demand immediate attention and action from Congress and the Obama Administration,” Hatch said in a statement.. “With our debt standing at over $14.5 trillion and counting, it’s outrageous that the IRS is handing out refundable tax credits . . . to those who aren’t even eligible to work in this country.”

{snip}

Topics:

Share This

We welcome comments that add information or perspective, and we encourage polite debate. If you log in with a social media account, your comment should appear immediately. If you prefer to remain anonymous, you may comment as a guest, using a name and an e-mail address of convenience. Your comment will be moderated.
  • Blaak Obongo

    “The IRS said it lacks the authority to disallow the claims.”

    This must be the first time in recorded history that the IRS has claimed not to have the authority to do anything. Apparently the godlike powers with which they oppress and harass the rest of us somehow fail when it comes to inconveniencing our precious “undocumented immigrants.”

  • Mr.White

    No wonder the illegal invaders fancy Escalades and Lincoln Navigators!! Illegal invaders are fleecing this country for all it’s worth and too many in our government are more than willing to aid and abet this theft.

  • Merle

    Something is VERY wrong with this country.

    America is slipping from The Dream to the Nightmare.

    People come from all over the world, not even in a legal manner and tell US what we will do.

    I go into the men’s room in an airport in K.C. and there is a whirlpool for muslims to wash their feet (a religious practice)

    they tell us what to do and we jump right to it.

    What if the Catholics demanded a Confessional, would they get it, of course they wouldn’t.

    Even wishing someone a Merry Christmas has almost been legally outlawed and We The People just shrug our shoulders and turn on American Idol as our country and our rights slip away.

  • Anonymous

    I knew this a long time ago, yet most Whites never had a clue. But then, most Whites are clueless in all areas of what is happening to them and the reasons why.

    Your own government HATES you. Once they drain you of all your resources you will be useless to them and off to the gulags you go.

  • Question Diversity

    Amazingly, (or maybe not), Rush Limbaugh said today that the Republican Presidential candidates should punt this issue, in order to deal with the more important jobs and economy issues. He thinks the WaPo is up to no good here, trying to get the Republicans to go off message.

    For one, immigration is an economic and jobs issue, and two, exploiting this issue is a political winner, because it involves illegal immigration, illegal immigrants illegally working, and illegal immigrants getting a quasi-welfare benefit. Sorry, Rush, don’t punt this issue, take this ball and rush it (no pun intended) right up the gut.

    There has always been a fashionable underground theory that the reason Rush Limbaugh is weak on immigration, other than the fact that lamestream conservatism itself is weak on immigration, is because he uses cheap illegal alien maids and housekeepers. I vaguely remembered a few years ago when he had his opiate problem, that some Hispanic housekeeper was involved in the narrative.

    Also, the Earned Income Tax Credit has become a racket. Time was that you had to be an American citizen, a single parent head of household only, at least a certain age, working, with an income in a certain range, and having dependent children under a certain age, to get the EITC. Now, the eligibility has been expanded so much that it has become not much more than another welfare benefit. I don’t think EITC should have ever existed to begin with, because even single income parents of relatively low income with children do have children that generally go to public schools, or those parents and kids themselves do or will use various welfare benefits.

  • LOUDMOUTH57

    “The IRS said it lacks the authority to disallow the claims.” Yet the IRS somehow has the authority to place tax leans,imprison, garnish wages,freeze bank accounts,and intercept check payment of U.S.citizens for non payment or falsifying tax returns. How long will U.S citizens obey laws that their own government agencies refuse to abide by and can’t even define?

  • Anonymous

    4 — Anonymous wrote at 7:26 PM on September 2:

    I knew this a long time ago, yet most Whites never had a clue. But then, most Whites are clueless in all areas of what is happening to them and the reasons why.

    Your own government HATES you. Once they drain you of all your resources you will be useless to them and off to the gulags you go.

    ———-

    AGAIN, you’re not going to a gulag. Like a Marine Gunny sergeant tells his recruits, “YOU MAY NOT DIE WITHOUT PERMISSION!”

    The Marxists and neocons have not the power to make real white march off to their death, nor can they take them by force. Stop that blather.

    (I do feel your disgust, though…the first part of what you said is true.

    But, fellow white man/ woman; enough of this talk of ultimate defeat. We will bow to no one, and should anybody be so foolish to think they could herd us…woe be unto them.

  • Anonymous

    IRS is demanding a huge amount of money from me. I get no due process, no rights at all. Just a letter demanding I sign away any rights to protest their findings and subjegate myself and what future I have to them. Yet, thay give away 1000’s to people who dont pay in the form of EITC or other welfare vehicles. And now this, free money for Mexicans. White males are just a working slave class to them now. The only demographic they can assert control over and use force and violence to control. I employ 30 people, trying to create middle class jobs. Goverment punishes success and rewards failure. I don’t know if I will accept being their vassle any more.

  • Anonymous

    7 — Anonymous wrote at 4:42 AM on September 3:

    4 — Anonymous wrote at 7:26 PM on September 2:

    I knew this a long time ago, yet most Whites never had a clue. But then, most Whites are clueless in all areas of what is happening to them and the reasons why.

    Your own government HATES you. Once they drain you of all your resources you will be useless to them and off to the gulags you go.

    —————

    AGAIN, you’re not going to a gulag. Like a Marine Gunny sergeant tells his recruits, “YOU MAY NOT DIE WITHOUT PERMISSION!”

    The Marxists and neocons have not the power to make real white march off to their death, nor can they take them by force. Stop that blather.

    (I do feel your disgust, though…the first part of what you said is true.

    But, fellow white man/ woman; enough of this talk of ultimate defeat. We will bow to no one, and should anybody be so foolish to think they could herd us…woe be unto them.

    ——————————————————

    Think again….like our government does not have the power and the FORCE to do what it wants? I am sure even you can see what has come down in the last couple of decades, can you not?

    Do you honestly think the White Russian people, etc. ever thought they would be murdered by the bolsheviks?

  • Anonymous

    The IRS lacks authority? Since when? There is a reason they are called the most brutal agency in the world. We all know why they “lack authority” in the case of these invaders, don’t we?

  • Anonymous

    There was a serious typographical error in this article. The quote in question should be read “The IRS said it lacks the desire to disallow the claims.”

  • shaunantijihad

    To whom and to what address did the IRS send the cheques to, if they were “undocumented”?

  • The Great Kazoo

    Rush Limbaugh said today that the Republican Presidential candidates should punt this issue, in order to deal with the more important jobs and economy issues.

    This is amongst many reasons I stopped listening to Rush, Beck and Hannity a few years ago. THEY are the ones marching in lock-step to the Republican party and urge the rest of us to do so. March in lock-step right off of a cliff.

  • hts

    Yeah… And a coworker of mine just got a bill from the IRS for $800 from his 09 taxes. Because the IRS decided to interpret a rule differently from him. Sure, they lack the “authority” to prevent those paymnents. Those jackboot thugs get away with anything…