Bill introduced to end child tax credits to illegal aliens
Immigration Reform Examiner
Rep. Sam Johnson (R-TX) has just introduced legislation (The Refundable Child Tax Credit Eligibility Verification Reform Act (HR 1956))which would block illegal aliens from receiving any further child tax credits from the Internal Revenue Service.
Rep. Johnson told reporters: “Last year illegal immigrants bilked $4.2 billion from U.S. taxpayers due to a loophole with the refundable child tax credit…That’s just wrong.”
“It’s time to close this loophole. With the dire need to cut government spending, I hope this simple fix gets a serious look as a way to stamp out waste, fraud and abuse,” Johnson said/
According to the Congressional Joint Committee on Taxation, HR 1956 would save taxpayers at least $10 billion by 2012, and at least $24 billion by 2021.
On September 1, the Treasury Inspector General for Tax Administration released a report revealing that the Internal Revenue Service doled out $4.2 billion in refundable tax credits to illegal alien in 2010.
The refunds were given in the form of the so-called ‘earned income child tax credits,’ which are designed to alleviate the tax burden on low income wage earners with children.
The problem has arisen through the use of individual taxpayer identification numbers which many illegal aliens use as they are not authorized to work in the United States and do not have legitimate Social Security numbers.
In fact, the audit showed that 72 percent of tax returns filed by those using taxpayer identification numbers, rather than Social Security numbers claimed the child tax credit.
The report states: “The payment of federal funds through this tax benefit appears to provide an additional incentive for aliens to enter, reside and work in the United States without authorization, which contradicts federal law and policy.”
The Inspector General said that the IRS should require those claiming the credit to prove that they are actually eligible to work here legally.
However, IRS management claims that they have no legal authority to ask for such proof when processing individual income tax forms.
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