From a quick google search. Makes me think genuine Americans are the only folks following the law. Joe Schmoo can go get an ITIN: An illegal immigrant cannot qualify for a legitimate Social Security number to use to file income tax returns or for any other purposes. Thus, a major facilitator for illegal immigrant access to income tax-based welfare benefits is the nine-digit Individual Tax Identification Number (ITIN) established by the IRS in 1996. It was initially established for people like foreign investors, who are required to file U.S. income tax forms but can not legally obtain a Social Security number. However, the IRS has allowed illegal immigrants to apply for and use the ITIN for filing income taxes returns related to income earned in the United States. Consequently, the ITIN quickly became a vehicle for illegal immigrants to obtain refunds of part or all of income taxes withheld (if any) from their pay and for obtaining refundable tax credits above and beyond any withholding. All but a small minority of people using ITINs today are illegal immigrants. Since Congress did not explicitly limit the Child Tax Credit (CTC) and the Additional Child Tax Credit (ACTC) to holders of Social Security numbers, the IRS has allowed ITIN filers to obtain billions of dollars of refund checks related to these tax credits. If the CTC results in negative total tax due, it may be converted into an ACTC, which is the vehicle that the ITIN filer (or Social Security number filer) may use to collect the negative tax in the form of a check from the IRS. By IRS rules, the ACTC is a refundable credit available to individuals with no tax liability. A Treasury Inspector General for Tax Administration report dated March 31, 2009, “Actions Are Needed to Ensure Proper Use of Individual Taxpayer Identification Numbers and to Verify or Limit Refundable Credit Claims,” indicates that, for the 2007 tax year, Child Tax Credits (774,000 filings for $0.62 billion) and Additional Child Tax Credits (1,220,000 filings for $1.78 billion), together totaling $2.4 billion, were given to ITIN filers.3 By definition, none of the 1,220,000 filers who received the ACTC refunds had any tax liability, and as a group they received IRS checks totaling at least $1.78 billion. The report goes on to say: “While the law also prohibits aliens residing without authorization from receiving most Federal public benefits, IRS management’s view is that the law does not provide sufficient legal authority for the IRS to disallow the ACTC to ITIN filers. Nonetheless, as it now stands, 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 to remove such incentives.”
Posted on: Tue, 01 Jul 2014 01:11:57 +0000
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