Illegal aliens receive $Billions Yearly via IRS Loophole

As part of National Tax Burden Month WDW –  Florida presents this column with videos of well known and documented tax fraud.

NBC Eyewitness News 13 in Indiana reports on a massive IRS tax loophole which provides over $4 billion per year in tax credits to millions of illegal aliens. In many cases recipients of American taxpayers’ misused monies have never set foot in the United States.

Watch this exposé put together by News 13 investigative reporter Bob Segall. He spent three months looking into this tax loophole:

Indiana is approximately 1700 miles northeast of the Mexican border.

A device known as the Additional Child Tax Credit is being used to pay for children living in Mexico — who have never lived here. One illegal admitted through an interpreter that his address is being used to file tax returns for numerous children, including multiple nieces and nephews. “If the opportunity is there and they give it [to him] why not take advantage of it?” he asked in Spanish. As a stunning example, thousands in tax credits have been awarded to an illegal alien who claimed 20 children live in a single trailer, that actually housed just one little girl.

“Our tax code should not reward those who enter the country illegally,” said Rep. Vern Buchanan (FL-13). “This is unacceptable, which is why last year I voted to immediately end the abuse of the Child Tax Credit by requiring those filing a claim to provide a Social Security number – a requirement that would save taxpayers $10 billion over the next decade.”

The IRS is aware of the magnitude of this fraud yet has done nothing to rectify it. In fact, this is the IRS website giving ten tips on how to apply. The application forms are easily downloadable.

J. Russell George, Treasury Inspector General for Tax Administration says report after report sent from his office has been ignored by the IRS. 

Watch the below video as the Honorable J. Russell George, Inspector General, Treasury Inspector General for Tax Administration, delivers his opening statement at an oversight hearing on Administration of the First-Time Homebuyer Tax Credit. October 22, 2009.