This is as stunning to me as it ws to the US congressman who was gven the results of this investigation
from link
""Why in the world are we doing this?" he asked. "Are you kidding me? The cost to the American tax payer is huge!"
The veteran lawmaker is responding to what 13 Investigates discovered all across Indiana: illegal immigrants getting big tax refunds from the Internal Revenue Service thanks to a loophole in federal law.
MORE: Tax loophole costs billions
The loophole allows undocumented workers to collect what's called an additional child tax credit. The credit – up to $1,000 per child – can be claimed even by families who pay nothing in taxes, in many cases resulting in a cash payment from the IRS. It is intended for working families with children who live in the same home.
But a local tax preparer came to Eyewitness News to blow the whistle on millions of people who, he believes, are taking advantage of the system. He says many illegal immigrants are claiming the tax credit for children who've never lived in this country, and he showed 13 Investigates
and
'Exposing the loophole
An undocumented worker in southern Indiana told 13 Investigates just how easy it truly is.
He said four other illegal immigrants file tax returns using his address, even though none of them actually lives there. And he said this year, those four workers filed tax returns claiming 20 children live inside his small trailer home. As a result, the IRS sent the illegal immigrants tax refunds totaling more than $29,000.
But none of the 20 children listed as dependents on the tax returns lives in Indiana – or even in the United States.
"No, they don't live here," admitted the undocumented worker, who lives with his young daughter. "The other kids are in their country of origin, which is Mexico."
The IRS granted tax credits for the 20 children anyway, even though the agency's own policy states they are not eligible. (Children are eligible for additional child tax credits only if they are US citizens or minor resident aliens who live in the US with a tax filer for more than half of a calendar year.)
"Eyewitness News obtained US Treasury Department audit reports that show illegal immigrants now get additional child tax credits totaling $4.2 billion dollars each year. The department's Inspector General for Tax Administration has repeatedly warned the IRS that undocumented workers are abusing the additional child tax credit.
"Millions of people are seeking this credit who, we believe, are not entitled to it," said inspector general Russell George. "We have made recommendations to [IRS] as to how they could address this and they have not taken sufficient action in our view to solve the problem. It's very troubling."
Why has the IRS done nothing?
Despite phone calls, emails, even a visit to IRS headquarters in Washington to get answers, no one at the IRS would meet with WTHR.
much more atThe Link
A bill to stop this will likely pass the House in May but is expected to die in the Senate.
from link
""Why in the world are we doing this?" he asked. "Are you kidding me? The cost to the American tax payer is huge!"
The veteran lawmaker is responding to what 13 Investigates discovered all across Indiana: illegal immigrants getting big tax refunds from the Internal Revenue Service thanks to a loophole in federal law.
MORE: Tax loophole costs billions
The loophole allows undocumented workers to collect what's called an additional child tax credit. The credit – up to $1,000 per child – can be claimed even by families who pay nothing in taxes, in many cases resulting in a cash payment from the IRS. It is intended for working families with children who live in the same home.
But a local tax preparer came to Eyewitness News to blow the whistle on millions of people who, he believes, are taking advantage of the system. He says many illegal immigrants are claiming the tax credit for children who've never lived in this country, and he showed 13 Investigates
and
'Exposing the loophole
An undocumented worker in southern Indiana told 13 Investigates just how easy it truly is.
He said four other illegal immigrants file tax returns using his address, even though none of them actually lives there. And he said this year, those four workers filed tax returns claiming 20 children live inside his small trailer home. As a result, the IRS sent the illegal immigrants tax refunds totaling more than $29,000.
But none of the 20 children listed as dependents on the tax returns lives in Indiana – or even in the United States.
"No, they don't live here," admitted the undocumented worker, who lives with his young daughter. "The other kids are in their country of origin, which is Mexico."
The IRS granted tax credits for the 20 children anyway, even though the agency's own policy states they are not eligible. (Children are eligible for additional child tax credits only if they are US citizens or minor resident aliens who live in the US with a tax filer for more than half of a calendar year.)
"Eyewitness News obtained US Treasury Department audit reports that show illegal immigrants now get additional child tax credits totaling $4.2 billion dollars each year. The department's Inspector General for Tax Administration has repeatedly warned the IRS that undocumented workers are abusing the additional child tax credit.
"Millions of people are seeking this credit who, we believe, are not entitled to it," said inspector general Russell George. "We have made recommendations to [IRS] as to how they could address this and they have not taken sufficient action in our view to solve the problem. It's very troubling."
Why has the IRS done nothing?
Despite phone calls, emails, even a visit to IRS headquarters in Washington to get answers, no one at the IRS would meet with WTHR.
much more atThe Link
A bill to stop this will likely pass the House in May but is expected to die in the Senate.
