SR 56 Audit the IRS

This guy misses the boat. There's nothing fraudulent about the ITIN. Obviously, it's not legal for an illegal alien to be in the country, but it is legal for him to file a tax return with an ITIN and even to collect a refund.

The real crock is that the IRS doesn't share its information with ICE. They should be turning over all of their information (the alien's alleged identifying information, contact information, where he works, etc.) to ICE, and ICE should be coming after both the alien and most of all, his crooked employer.
 
Deez, the main point is that the additional child tax credit is a refundable credit, and much of it is fraudulent. Illegals are not eligible to receive EIC, why should they be eligible to receive the additional child tax credit; especially when the children on the return do not qualify and don't even reside with them?
 
Illegals use stolen identities until they are caught and then they get a new one. When they receive their checks they go the people that help them get the stolen identities and cash their checks at the local ACE Cash Express or similar store.

It is racket and the illegal immigrant is taking full advantage of every tax loophole, credit or welfare program in existence.
 
But the child must reside in the country. Many of the so-called dependents reside in Mexico. It's ironic, but you supposedly have to prove the child is here illegally in order to receive the credit. If the child is in Mexico, you aren't suppose to receive the credit.

By the way, I work at the IRS center in Austin - not in the ITIN processing department - but I've seen thousands of returns over the past decade and I guarantee, the statistics on the video coincide with what I've seen.
 
Somebody explain this to me. Are these people, and some aren't just illegals, getting refunds over and beyond what they actually paid in federal income taxes? This has been brought up before and I still don't quite understand it....b/c I thought you could receive a tax credit but if the total credit is more than you paid in taxes then you would receive only a refund for that portion.

It would be great if there was an example of such a tax return form everyone is talking about.
 
Here's an example. Refer here to view Form 1040

Suppose you earned $24,000 in wages and have two dependents. You file head of household. After deductions ($8,500 for head of household & $11,100 in exemptions), your taxable income is $4,400. You are taxed at 10% which is $440.00 (Line 44). Any of the credits from Line 47 to Line 52 can reduce your tax to zero. Let's say you only claim the child tax credit and input $440 on line 51. At this point, you pay zero tax.

Lines 64-71 are refundable credits. That is, even if your tax is zero, you can take these credits and receive a refund. In our example, the filer could claim $1,560 on line 65 (additional child tax credit). This would be the refund. If the filer was eligible for EIC (Line 64a), another $3,567 could be claimed. In this example, the person would not only pay zero income tax, but would receive a refund of $5,127. This is common place. The illegals cannot receive EIC, but they are entitled to the additional child tax credit.
 
Thank you Musburger for the explanation. These credits should be certainly be voided or capped at a total $ amt, say 2 or 3k, and then eventually phased out.

I know everyone wants to rail on illegals but I have heard some of our own posters say they are getting these refunds as well. So I know it is not isolated to just illegals. Your walmart employee is a great example of that. These illegals may just be jobbing the system a bit more than others.
 
Good point. But seems like if legislation were introduced to remove these refundable tax credits then we would get to see the pinworms.
 
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