IRS doling out Billions to Illegals now they are being investigated.. Every part of the government is just as bad some even worse.. and Congress just investigates Ball players for doping

iamnothere 2012/07/04 14:28:05
And finally, the IRS gets audited!
Federal agency that strikes fear into U.S. taxpayers getting dose of own medicine
Published: 15 hours ago
author-image by Chelsea Schilling Email | Archive
Chelsea Schilling is a commentary editor and staff writer for WND, an editor of Jerome Corsi's Red Alert, and a proud homeschooling mother. Schilling joined the Army at age 17, receiving the exceptional designation of expert marksman three times. In addition to WND, Schilling has worked as a news producer at USA Radio Network and as a news reporter for the Sacramento Union.

The federal agency that strikes fear into many U.S. taxpayers is getting a dose of its own medicine – as it is now the focus of a year-long audit for allowing illegal aliens to scam the system and bilk taxpayers out of billions of dollars every year.

Federal employees are blowing the whistle on the Internal Revenue Service, according to a report by Indianapolis television station WTHR-TV.

The scam involves the use of an Individual Taxpayer Identification Number, or ITIN –a nine-digit tax-processing number assigned by the IRS to individuals who are obligated to file a federal tax return but do not have or are not eligible for a Social Security Number. Illegal aliens may obtain an ITIN by sending the IRS documents such as original or notarized photocopies of birth certificates, driving records, voter ID cards, school records and vaccination records – all documents that are easily forged or falsely notarized.

The Center for Immigration Studies reports that in the 2010 tax year alone, more than 3 million returns were filed with ITINs. Approximately 2.3 million paid no federal income taxes and also collected a cumulative $4 billion in tax refunds.

According to the news station, which conducted a four-month investigation, “the ITIN system is plagued by abuse and fraud.”

Howard Antelis, a tax examiner at the IRS’ ITIN processing center in Austin, Texas, explained: “We were being told by upper management to ignore fraud, to assign ITIN numbers and … pay out refunds to people who are lying. It’s a license to steal when you allow that.”

A half dozen tax examiners from the Austin office blew the whistle on the IRS and told WTHR-TV the same story: Every one of them says IRS managers told them to “look the other way” when they processed ITIN applications that appeared to be fraudulent or raised suspicion of criminal activity.

As one example, Antelis explained that he had been given a stack of ITIN applications indicating that dozens of dependent children had been attending a South Carolina school.

But he discovered one major problem: The school didn’t exist.

Antelis said he told his managers about the false information, but they told him to approve the applications anyway.

“C’mon. This is fraud! Those kids weren’t even real and I’m supposed to give out [ITIN] numbers?,” Howard said he asked his bosses.

He told the news station, “We’re tax examiners but the truth is we’re not supposed to look into anything. We’re not supposed to examine anything. It’s like an assembly line. It’s just ‘Get it out of here. Boom. Boom. Boom. Get it out of here and don’t worry about the fraud. Fraud slows us down.’”

Antelis said he reported the scams regularly to his managers – for years – with no result.

Frustrated with the inaction, he called the Inspector General’s office in Washington, D.C.

“I’ve been working for the federal government for 23 years and I signed an ethical standard of conduct when I went to work that says if you see fraud, you need to report it,” he said. “I tried and tried and tried, couldn’t get anywhere so … I went into a quiet room and started making phone calls.”

According to the report, the IG’s office sent auditors to Texas to interview Howard and dozens of other tax examiners.

The auditors made a shocking discovery: IRS employees were, in fact, encouraged to overlook indications of fraud.

The IG’s final audit report is expected to be released this summer.

WND reported in May when one Northern California Internal Revenue Service employee described revelations that millions of illegal aliens are claiming and receiving billions of dollars in tax refunds for alleged family members in Mexico using a loophole in the tax code.

Then, a WTHR-TV report documented illegal aliens filing the IRS Additional Child Tax Credit form for children – often nieces and nephews – who have never lived in the United States. To legally qualify, a child must be present in the filer’s U.S. residence for over half the year.

“We’ve seen sometimes 10 or 12 dependents, most times nieces and nephews, on these tax forms,” a tax preparer-turned-whistleblower told WTHR News. “The more you put on there, the more you get back.”

“Here’s a return right here: we’ve got a $10,300 refund for nine nieces and nephews.”

“We’re getting an $11,000 refund on this tax return. There’s seven nieces and nephews,” he said, pointing to another set of documents. “I can bring out stacks and stacks. It’s just so easy it’s ridiculous.”

Of course, the problem was not a revelation to the Northern California IRS field-office worker who viewed the report: “The fraud has been going on for years,” he told WND. “Business as usual.”

“As the video indicates the Service does nothing,” he said, asking WND not use his name to avoid reprisal.

As a result, illegal aliens who are defrauding the system not only manage to pay no federal income taxes, their abuse of the credit means they get back everything they paid into Social Security and more.

On May 23, 2011, dozens of House Republicans co-sponsored H.R. 1956 “to amend the Internal Revenue Code of 1986 to require individuals to provide their Social Security number in order to claim the refundable portion of the child tax credit.”

But Democrats resisted, and the legislation stalled after only one hearing before the House Ways and Means Committee.

Ironically, IRS Commissioner Douglas Shulman said in April that paying taxes should be considered one of the pathways to citizenship for illegal aliens.

Based on what comes across the Northern California field-office agent’s desk, he has seen the problem burgeon in tax returns filed by Spanish-language tax preparers. Calling them “the enablers and catalyst of this fraud,” he noted their clients are more comfortable working with preparers who speak their language. The preparers educate their clients about greater returns they can receive the following year if they qualify family members for the Additional Child Tax Credit refund. It’s a win-win-lose – the client learns how to get more money back from the IRS, the preparer generates good will and repeat business, and the U.S. taxpayers get soaked. Knowledge of the scam then spreads by word of mouth.

While agreeing the Additional Child Tax Credit was a major problem, he said it should not be the primary focus.

“When reviewing the big picture of this fraud, always remember and never forget that it is the ITIN that opens the portal to obtaining the credit,” he said.

The requirements for obtaining the ITIN for a worker includes submitting original official documentation from the country of origin to the IRS processing center in Austin, Texas, for validation.

But, as WTHR-TV reports, the Texas office has many of its own mismanagement issues, providing more cause for concern.

“It’s pure negligence by management and they’ve been trying to keep it quiet,” Antelis said. “There is a criminal element that is defrauding the U.S. government by filing mountains and mountains of these fraudulent applications. We see them in piles in bulk every day that are obviously not legitimate documents and not legitimate tax returns and not legitimate wages … and [IRS managers] don’t want to deal with it. That’s where all the fraud is. The fraud is in the fake notary stamps and fake documents which we’ve been accepting.”

IRS Deputy Commissioner for Services and Enforcement Steve Miller reportedly met with 100 tax examiners and said he would address the issues reported by workers and the news station.

According to the report, tax examiners will be given additional training and tools to help spot fraudulent paperwork, including ultraviolet lights and magnifying glasses. According to new procedures, illegal aliens will be required to submit original, certified documents – not notarized copies, which are often forged.

“That’s a huge step in the right direction,” Antelis told the station. “Because of the Inspector General and all of the media attention, things are finally starting to change. For the first time in a long time, I feel like this might get fixed.”

But Antelis said the IRS is retaliating against him for exposing the fraud.

The agency reportedly cut his job-performance rating from “exceeds fully successful” to “minimally successful,” reducing the size of his paycheck and causing him to wonder whether he will lose his job for speaking out.

“I’m a little nervous, but not really. I guess they could try to fire me, but I don’t think they will,” he said. “I just want to see things fixed. We’ve been allowing the U.S. taxpayer to get robbed for years now and those days appear to be over.”
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Top Opinion

  • Tasine 2012/07/04 14:37:00
    Simple question to scholars out in the hinterlands: Why do average Americans have to obey the laws of the land while the politicians, news media, and all progressives do not have to? In MY book, laws are for EVERYONE OR for NO ONE. Is this Administration hinting that we are no longer a nation of laws, but instead are a nation of lawlessness???

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  • bpf 2012/07/06 21:46:55 (edited)
    Spend the Billions stolen by these diseased infested low-lives and build a "real wall across our borders..around 50' High - 50' thick (maned with armed watch towers every 1000 yards) and about 75' deep with motion sensors. And remember it takes BOTH the Congress & Senate to pass any bill, if the Senate under Harry's (Democrats controlled) blocks everything coming out of the House (Republican Controlled) yell at the correct group of people.
  • ed 2012/07/04 21:19:55
    congress needs to get off their worthless ass and do their job or they could be easily replaced with some true AMERICANS.
  • Don Leuty 2012/07/04 21:05:27
    Don Leuty
    Left hand knows not what the right hand is doing. The larger the network, the greater the noise. Oft times, one cannot hear above the noise.
  • Calm down! 2012/07/04 18:45:02 (edited)
    Calm down!
    Illegal's got paid out $4.2 Billion dollars in tax refund checks last year! What a joke! It's bad enough they flood here and steal our jobs from us, drain all the free state programs, free health insurance, free food stamps, they drive with no insurance, police won't do anything, ICE won't do anything. What a joke this is! American's want our towns and cities back! We want stronger immigration laws, a good fence built, and massive deportation! People are getting sick of our leaders being so soft on immigration just so can get their votes and get re-elected! That's another thing. Why in the hell are they allowed to vote anyway!!!

    Mexican illegals
  • Maddog 2012/07/04 18:26:08
  • dubbie 2012/07/04 18:09:12
    Pure out Embezzlement for redistribution purposes . This one way govt. road with our money has no U turns 10 to .16 Trillion in 3 years Imagine 4 more years Take that back dont imagine it ,DONT EVEN THINK ABOUT IT, Fire em all ( liberals)
  • Patriot Unit 2012/07/04 17:46:34
    Patriot Unit
    Well, as the old saying goes, Never send the fox to check the hen house. The Government Department of Injustice always picks and chooses what it investigates, that is the fallacy of the Department. It is not Independent, it is the direct arm of the Executive Branch of Government. So how do you expect it to investigate anybody with an independent outlook. They take their orders from the President do they not. And whoever the President is, He has the power to control what DOJ does. They work for him. The House has oversight but it can do nothing that the President or the Attorney General approve.
  • Ozzyboy 2012/07/04 17:01:49
    Why would the tax examiners be given additional training and tools to help spot fraudulent paperwork when they already are doing that and are told to ignore their findings and pay the illegals anyway? Everyone should not allow the deductions from their paycheck. Yes, you can legally do that but you would have to pay it by April 15th.
    Perhaps by then, when the feds have no revenue for the year, they might listen to the taxpayers and stop giving the workers money to those who defraud the government. The only way things will change is if the people demand it. It's time.
  • Kane Fernau 2012/07/04 16:53:33 (edited)
    Kane Fernau
    We need a flat tax and put the IRS in the ash heap of history! We need term limits, even at the Supreme Court. We need to make government smaller and less intrusive. We are civilized human beings and we don't need a Nanny telling us how to live.
  • Mary Philliber 2012/07/04 16:23:33
    Mary Philliber
    When this president is booted out of office I have a feeling we are going to find out
    about so much corruption that we won't even believe it.
  • Striker 2012/07/04 16:21:57
    U.S. Government Accountability Office (U.S. GAO), http://www.gao.gov/
    For those who wish to study more on US audits, Search "Federal Government audits" - one could probably spend weeks on all that!

    This article deserves a full read. My sense is that either the GAO has breached it's duties as regards the IRS. This is less a matter of "audit" and much more should be the target of a full-fledged Congressional hearing which would result in many charges for fraud and dereliction of duty.

    FTA: "Howard Antelis, a tax examiner at the IRS’ ITIN processing center in Austin, Texas, explained: “We were being told by upper management to ignore fraud, to assign ITIN numbers and … pay out refunds to people who are lying. It’s a license to steal when you allow that.”" And yes, other similar items, MANY!

    Thus what we learn here is that obviously from SOMEWHERE upstairs have come orders to "ignore the law" yet again. Add in the fraud, and we'll see another herd of our Rulers who must be rounded up and jailed or hanged.

    Without intending to distract from this excellent post, our entire GOVERNment is operating in the same manner, both illegal and immoral. When do we say "ENUF!"?
  • Mr. T 2012/07/04 16:12:22
    Mr. T
    WOW...imagine that. An agency dealing directly with the government being inefficient and out-of-control. And yet threaten us when they "THINK" we are wrong. With the IRS, as with many government-run agencies, you are guilty until proven innocent.
  • Bill in Niantic 2012/07/04 15:51:23
    Bill in Niantic


  • belle 2012/07/04 15:45:30
    The federal government needs to disappear. They are more trouble than they are worth these days. We should give our income taxes to the individual states and let them run what the government thinks they run. Keep our military with the states being in charged.
    No money for any illegals to live on here in the USA, just money to be spent sending back to ehwre they came. Couldn't be any worse with the DC mentality we have today.
  • Ken 2012/07/04 15:14:40 (edited)
    Thank God for responsible employees of the Government, more should respect their oath to the people.
  • william raggett 2012/07/04 15:11:43
    william raggett
    WOW...alot of heads should roll on this one but I bet it just gets swept under the carpet
  • wtw 2012/07/04 15:04:45
    And the crooked Obama regime does zero to cut waste, fraud and abuse and instead focuses on how to create more.
  • maggiemay 2012/07/04 14:46:56
    If they would go to a flat tax that would eliminate a lot of these abuses. If we would get rid of the Federal Government that would be even better.
    The Government has been overflowing with corruption for years, and years. The only way to stop it is to close em down, and send everyone home. Let the states decide what is best for it's people where at least they are easier to watch, and control.
  • Striker maggiemay 2012/07/04 15:38:37
    I agree with every word of your comment. And, while I agree with a flat tax, I do wonder how that might eliminate these abuses?
  • maggiemay Striker 2012/07/04 17:08:57
    Flat tax would eliminate all the loop holes that these people use.
  • Striker maggiemay 2012/07/04 17:13:59
    LOL - I am FOR all the loopholes the People can get! Even with a flat tax there will be sacred cow deductions.
  • maggiemay Striker 2012/07/04 17:19:01
    Well Striker since you refuse to file I guess that leaves you out doesn't it?
  • Striker maggiemay 2012/07/04 17:24:30
    I remain a citizen, so not exactly LOL
  • maggiemay Striker 2012/07/04 17:26:46
  • Kat ♪ ~ ♪ 2012/07/04 14:38:50
    Kat ♪ ~ ♪
    The whole federal government needs audited. Waste, fraud and abuse are rampant.
  • Tasine Kat ♪ ~ ♪ 2012/07/04 14:45:51
    I think the whole federal government needs to be defunded. We can do without all this crap - every department, every agency is totally out of hand, and piecemeal repairs will not work. We need a total do-over!
  • maggiemay Tasine 2012/07/04 14:47:44
    I so agree. Send them all home.
  • iamnothere Kat ♪ ~ ♪ 2012/07/05 03:54:27
    audits are fine.. what we really need is an across the board 50% reduction is the budget.. When things get squeezed like that.. the waste fraud and abuse get taken care of
  • Kat ♪ ~ ♪ iamnothere 2012/07/05 03:56:21
    Kat ♪ ~ ♪
    Agree, reduce the budget and personnel. Redundant jobs and departments are a huge waste. Line item budget would make them pay closer attention to how they spend.
  • iamnothere Kat ♪ ~ ♪ 2012/07/05 03:58:14
    the government is on auto pilot with built in budget increases for ever and ever and ever.. even though they have no real need
  • Kat ♪ ~ ♪ iamnothere 2012/07/05 04:18:35
    Kat ♪ ~ ♪
    You'd never convince them of that, but it's time for some tough parenting, take away the credit limit and the cards, make them realize that they are hurting people and businesses with their stupidity.
  • iamnothere Kat ♪ ~ ♪ 2012/07/05 04:35:42
    everyone with a brain that works knows that... to bad that the brains of those in DC seem to go on hiatus as soon as they get there
  • TasselLady 2012/07/04 14:37:34 (edited)
    GOOD. And still others on these pages insist that the illegal aliens are not getting food stamps and other government aide. What a load bull. They certainly are and this audit definitely proves it. It's about time they got caught with their pants down the insufferable bastards. They screw everybody and go after everybody who is behind on taxes, but think they are entitled to do whatever they want to other people and then give money to crooks instead of legal citizens. Maybe NOW things will start to change. I hope their gonads get nailed to the wall and that they're made to pay all that money back to where it belongs, to the American people who are LEGAL and were born here and who deserve it.
  • Tasine 2012/07/04 14:37:00
    Simple question to scholars out in the hinterlands: Why do average Americans have to obey the laws of the land while the politicians, news media, and all progressives do not have to? In MY book, laws are for EVERYONE OR for NO ONE. Is this Administration hinting that we are no longer a nation of laws, but instead are a nation of lawlessness???
  • Kat ♪ ~ ♪ Tasine 2012/07/04 14:41:28
    Kat ♪ ~ ♪
    They think we are a nation of sheeple just paying our taxes quietly so they can waste them as they see fit and come back for more. They believe they can do whatever they want to us and if they get their way, they will.
  • Striker Kat ♪ ~ ♪ 2012/07/04 15:48:52 (edited)
    Well, we don't ever really know what another thinks. Still, yes the sheeple (strike that and replace with most people) do certainly pay their taxes without complaining about the abuse and downright fraud like this! This is good reason for NEVER filing a 1040 and thereby waiving one's 4th Amendment rights.

    If we really want to put a stop to these games, Starving the Beast is the only way. I'm not just blowing smoke with this, as I became a non-taxpayer more than 2 decades ago, and at least a couple of other SH'ers are ditto.
  • TasselLady Tasine 2012/07/04 18:00:03
    Well if there is any lawlessness, the government is more guilty than all of America's citizens combined. They abused their power and continue to do so because WE let it happen. It has to stop and has to stop now.
  • Tasine TasselLady 2012/07/04 18:13:01
    Agree 100%!! applause

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