Bungling Bureaucrats Dole out Billions in Tax Credits to Illegal Immigrants

Stephen Dinan, Washington Times, October 14, 2013

The federal government’s decision to pay out billions of dollars in tax credits to illegal immigrants likely was made by midlevel bureaucrats and has never received full congressional scrutiny, according to a study that the Center for Immigration Studies is releasing Monday.

The report, written by CIS fellow David North, says the Internal Revenue Service doled out $4.2 billion in what is known as the “additional child tax credit” in 2010 to those using an individual taxpayer identification number, or ITIN, which is usually a signal of an illegal immigrant.

The issue has been known for some time. But Mr. North went deep into the data to try to look at why it’s happening, and said it’s a story of a tax credit expanding beyond its initial scope, and midlevel IRS managers twisting the law, leaving billions of dollars going to illegal immigrants.

In particular, he said he can find no evidence that the decision to allow illegal immigrants to collect the tax was made by top leaders at the IRS, and he said it wasn’t the intent of Congress.

{snip}

Nobody was answering the phones at the IRS during the government shutdown, which began Oct. 1.

But the agency in the past repeatedly has said it doesn’t believe the law allows it to deny illegal immigrants the tax credit, and also disputes that it has the legal authority to deny claims even when they aren’t backed up by documents showing that the children actually live in the U.S.

“The IRS does not have the legal authority to deny credits during processing when documentation is not provided,” the agency told its inspector general in 2011.

The “additional child tax credit” was created to help out those who make too little to qualify for the full child tax credit. The ACTC is refundable, meaning that even if the taxpayer doesn’t owe income tax, he or she could get a payout from the IRS.

That becomes an avenue for fraud, particularly when combined with illegal immigrant workers, whose use of the tax credit has jumped from 796,000 filers in 2005 to 1.5 million in 2008 and 2.3 million in 2010, according to the IRS‘ official auditor.

{snip}

But abuses still abound for existing ITINs, Mr. North argues.

Investigators identified one address in Atlanta where 23,994 ITIN-related tax refunds were sent—including 8,393 refunds deposited to a single bank account. Mr. North said those were pretty good indications of fraud.

He said the IRS should also look for cases where an ITIN filer goes from claiming no dependents to claiming four or five dependents the next year.

Mr. North used an auditor’s report to identify a town in Delaware and another on Virginia’s Eastern Shore with large concentrations of ITIN filers.

Frankford, Del., had one address where 627 ITINs were registered—despite the town having a population of just 862. Parksley, Va., had a single address with 100 ITINs registered, in a town of 847 residents.

Mr. North visited both towns and found that while Frankford seemed oblivious to the situation, Parksley was different. One tax counselor in town told him she suspected a rival business was responsible for the ITIN applications, he said.

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  • Puggg

    “Bungling” Bureaucrats

    This wasn’t a bungle, I bet they did it on purpose. Ignored any laws against it to give stuff away to illegals.

    • give our stuff away

      • Ella

        According to the Democrats, we don’t need to pay off our bills.

    • Jesse James

      I agree this just more of the great wealth redistribution and fundamental change brought to us by Obama. It is also the inevitable result of the government’s preferential hiring and promotion of various minorities. You never hire the fox to guard the hen house – at least in a sane fairy tale you don’t. We live in the age of inverted morality.

    • Mark Hillyard

      If I get one thing wrong on my tax return they correct it. Why can’t they find anything wrong with this. If they overpay me the get the money back. These things have happened to me.
      I’m worth a few dimes in tax to the Feds! How is it that my mistakes show up and I’m called on it, if this thieves file a fraudulent tax return they get the equivalent of a Nobel Tax Prize.
      “Liars, thieves and tramps”, someone must have said that before so I’m putting quotes on it.

      • Puggg

        “How is it that my mistakes show up and I’m called on it, yet….”

        Because you’re the wrong color and political party.

      • Greg Thomas

        Because they don’t want to “find out” when it comes to their beloved mexican invaders. They just want to keep our tax dollars flowing into their pockets.

  • Why call them “bungling?”

    They are just agents of social change, working for Al-Obama, earning their way into the leadership of his Civilian National Security Force, aka Diversity.

    “Any law that prevents us from ‘doing the right thing’ isn’t a law that the progress of social change should obey. Humanity and equality come first.”

  • Luca

    Unscrupulous tax preparers entice illegals (and others) that they can prepare their income tax returns with a promise of a large refund for a 10% cut. They establish an address in a town, receive the false refunds, hand them over for their 10% cut and then leave town. Same tactics repeated in another town, next year.. When the IRS comes calling for an audit a year later, the culprits are long gone.

  • D.B. Cooper

    Once again, the guilty party gets to hide behind the name of the organization while receiving no punishment. I say, “Ho Hum.”
    The brain dead American public will overwhelmingly reelect Obama if he could run again, and the rest will vote for any republican, even if Al Sharpton runs for the GOP.
    GOOD! The sooner it all falls apart, the sooner we can be rid of diversity.
    At least Africa has gotten that $50,000,000 that George W. BUSH promised them.

    • DaveMed

      I decided today that I feel literally no more patriotism or loyalty toward this country. I will, legally, take what I can just as all the parasites do.

      What comes after the eventual collapse cannot be worse.

  • joesolargenius

    The GOP was allegedly trying to pass laws last year limiting child tax credits to only those with a valid social security number instead of an ITN. The IRS was warned by numerous employees that fraud was being committed but were told by the Democrats to just ignore what was happening.

    • Ella

      Congress claims it would cost too much to hire IRS watchdogs who can contact ICE to trace these tax-credit scams. All IRS had to do was to sort out the fraudulent forms and refuse pay!!!!!! If the taxpayers kept filing or called to follow up on their questionable tax refunds, like any case, IRS can audit and talk with you in person. Secondly, if you don’t pay into federal taxes, then, you get NO refund!

      • What? No EITC check?

        • Ella

          If your tax liability is less than zero, “just say no way, Jose.” I like the birthing of 4 children in one year. White people need to have 4-5 babies within a year for better tax deductions! It was the IVF thing.

  • Homo_Occidentalis

    Tricking the Goyim into paying for their own dispossession and demographic replacement. How crafty!

    • Sick of it

      Reminds one of South Africa.

      • Spartacus

        Reminds one more of the 13 colonies .

  • Spartacus

    “Investigators identified one address in Atlanta where 23,994
    ITIN-related tax refunds were sent—including 8,393 refunds deposited to a
    single bank account. Mr. North said those were pretty good indications
    of fraud.”

    ———————————————————————————————————————

    • WASP

      That’s funny! When we were kids, we used to see if Negroes were around by looking for the whites of their eyes.

      • D.B. Cooper

        When I was a little kid, I used to think that while we got black eyes if punched, they got white eyes if you punched them.

  • Luca

    No blundering here, just another way to share the wealth and pander to the illegals.

  • WASP

    “But the agency in the past repeatedly has said it doesn’t believe the law allows it to deny illegal immigrants the tax credit, and also disputes that it has the legal authority to deny claims even when they aren’t backed up by documents showing that the children actually live in the U.S.”
    Illegal aliens don’t have rights; they’re breaking our laws just by being here; they certainly aren’t entitled to tax credits or benefits. What treachery by our government.

  • dd121

    As the bureaucracies increase their percentage of low IQ minorities, you’ll see more and more disfunction in their operations. Some will simply not work, like Obamacare. These are not problems that will be ironed out with the passage of time.

    • WASP

      America is a rotting fruit on the vine. How depressing.

  • Ella

    I see two problems here. 1. The government is totally incompetent, and “We the People” continue to pay these federal workers to make more fiscal problems and ruinous debts. 2. We have a government who tests the general citizens to see how far they can go to violate our Constitutional Rights, without dire consequences.

    • dd121

      The Federal government is incompetent because they refuse to hire the most competent candidates for employment. In 1973 the supreme court struck down the use of the Federal Service Entrance Examination (an IQ test, essentially). So, for the past 40 years, Civil Service has been dumbing down. You’re seeing the results now. It’s been a long slow process. It will get worse.

  • bigone4u

    Just last week Amren ran a story about the trillion dollars all the black phony “farmers” collected from the corrupt US Government. Now this. Shut this government down for good, give those responsibible a trial, and if found guilty by a jury of white persons, hang them. Just like the Founding Fathers would have done.

    • WASP

      Precisely!

      • bigone4u

        I always file for a tax extension and so my tax return was due today. October 15 is never a good day for the Federal government to fool with me or for the news media to show me how I’m getting screwed by the Feds, along with the rest of us whites.

    • Jesse James

      Just remember this isn’t incompetence, it is a massive illegal transfer of wealth to non-whites. We opened our society to them, we let them vote, we recruited them into our government, we put them into our schools and they repaid this trust and our hope for a better future with violence, petty crime, massive amounts of government corruption, rape, treachery and constant hatred. Enough is enough.

      • mikebowen55

        You mean to say we had it forced upon us but I get your point.

  • leftists are delusional

    Not an oversight.

  • John R

    The agency doesn’t believe that the law allows it to deny the tax credit to illegal immigrants? HUH???? WTF! (Not spelled out, dear moderator.) As I have read from some others: You can’t make this stuff up.

  • DailyKenn

    I wonder if it really was an error? Or an intentional giveaway.

  • MekongDelta69

    This was NO bungle.

    EVERYTHING this black muslim marxist dictator does, along with his radical socialist regime is done ON PURPOSE

    He said he was going to ‘transform America’ – and he meant it. It’s probably the only true statement he’s every uttered in his life…

  • Bon, From the Land of Babble

    Investigators identified one address in Atlanta where 23,994 ITIN-related tax refunds were sent—including 8,393 refunds deposited to a single bank account. Mr. North said those were pretty good indications of fraud.

    YA THINK?!?

    To lefties, this is an example of “social justice.” You must sacrifice and lower your lifestyle so government welfare parasites and illegal aliens can live a better life.

    Can the ☭bama regime be any more corrupt? Yeah, stupid question…

  • DaveMed

    G****** it, is there not a single day without news that raises my BP?

    • mikebowen55

      Don’t ponder too long on that one.

  • I agree with many others here so far. The title suggests “bungling” or incompetence – however, the remarks from “IRS management {who are} twisting the law” point to something quite different.

  • MartelC

    “bungling” I sincerely doubt it. Labour in Britian “oops’ ‘bungled’ “glitched’ its way to adding five million immigrants to the UK

    This is how the left operates.

    • mikebowen55

      Agreed. Bungling and treason have one major difference and that is how each is fixed.

  • emiledurk16

    “But the agency in the past repeatedly has said it doesn’t believe the law allows it to deny illegal immigrants the tax credit.”

    But it has no trouble believing the law permits them to target conservative tax exempt filers.

    When I see the smug, defiant kisser of Louis Learner I want to hurl.

    Her visage ranks right up there with Hillory’s, Obama’s and Kerry’s on the repulseivity list.

    I say the House says GFY to Obama and the leftist senators on the debt ceiling.

    No more credit for you, you white hating liberals.

    Let the system crash; I hope it does.

    Then we can secede, pick up the pieces and start anew with our own country and state.

    No illegal aliens or traitorous liberals need apply.

    Is that jerk Stuart Smalley still taking up a senatorial seat?

  • SFLBIB

    What can you expect when the attitude of the government is to shovel money into the streets?

  • withcaution

    “But the agency in the past repeatedly has said it doesn’t believe the law allows it to deny illegal immigrants the tax credit.”

    Just bizarre. I can’t even get my head around such a stupid concept.