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Thread: Millions Of Illegal Immigrants Are Using A Massive Scam To Get Bigger Tax Refunds Than You

  1. #1

    Millions Of Illegal Immigrants Are Using A Massive Scam To Get Bigger Tax Refunds Than You

    Millions Of Illegal Immigrants Are Using A Massive Scam To Get Bigger Tax Refunds Than You Are

    Michael Snyder
    The American Dream
    Friday, May 11, 2012

    Did you know that illegal immigrants all over the United States are using a massive scam to receive tax refunds from the federal government that are often in excess of $10,000? It is estimated that 2 million illegal immigrants are filing fraudulent tax returns each year and that they are pulling in more than 4 billion dollars in tax refunds every year that they are not entitled to. They are doing this by abusing the additional child tax credit and the IRS knows all about it and yet they refuse to do anything to stop it. Illegal immigrants are filing tax returns that sometimes claim 10 or 12 nieces and nephews as dependents, and most of the time those nieces and nephews do not even live in the United States. So while you and I are being taxed into oblivion, many illegal immigrants are often pulling in tax refunds that are well into five figures. At a time when the federal government is absolutely drowning in debt, this is the type of fraud that desperately needs to be cracked down on, and yet the IRS refuses to take action.

    Posted below is the shocking investigation by WTHR in Indianapolis that broke this story wide open. If you have not seen this yet, it is definitely worth the 6 minutes that it takes to watch it. Please share it with as many people as you can. It boggles the mind to think that this kind of fraud can be committed right out in the open and yet the IRS will not take action. You can watch this shocking investigation right here….



    So how in the world can illegal immigrants file tax returns without a Social Security number?

    Well, the IRS says that everyone must file a tax return – even people that are making money illegally.

    So illegal immigrants are given an Individual Taxpayer Identification Number (ITIN).

    Like a Social Security number, it contains nine digits and it is used by U.S. employers to withhold taxes and it is used by illegal immigrants to file their tax returns.

    You might be thinking that this sounds completely insane considering the fact that it is illegal for them to have jobs in the United States, and you would be right.

    But this is how the system works.

    And it turns out that illegal immigrants have been exploiting the additional child tax credit to receive absolutely huge tax refunds.

    Recently, a tax preparer up in Indiana blew the whistle on this whole thing. A WorldNetDaily article about this scam contained some absolutely mind blowing quotes from this whistleblower….

    “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.”

    Last year, the whistleblower alerted the IRS to dozens of examples of illegal immigrants using this scam.

    So what happened?

    Absolutely nothing.

    The IRS took no action.

    But they seem to have plenty of time to come after you and I, don’t they?

    The WTHR investigation mentioned above discovered one instance in which it was claimed that a total of 20 children lived in one trailer in Indiana.

    Because of tax credits for those children, a total of $29,608 was paid out to several illegal immigrant workers.

    But when a reporter from WTHR went to the trailer, he found that only one girl actually lived there.

    What makes all of this even worse is that the IRS has known about this problem for years.

    In fact, the IRS has not taken action on this problem despite report after report from the Inspector General.

    Amazingly, the IRS seems to believe that there is not even a problem. The following is from a statement that the IRS issued to WTHR….

    “The law has been clear for over a decade that eligibility for these credits does not depend on work authorization status or the type of taxpayer identification number used. Any suggestion that the IRS shouldn’t be paying out these credits under current law to ITIN holders is simply incorrect. The IRS administers the law impartially and applies it as it is written. If the law were changed, the IRS would change its programs accordingly.

    “The IRS disagrees with TIGTA’s (inspector general) recommendation on requiring additional documentation to verify child-credit claims. As TIGTA acknowledges in this report, the IRS does not currently have the legal authority to verify and disallow the Child Tax Credit and the Additional Child Tax Credit during return processing simply because of the lack of documentation.

    “The IRS has procedures in place specifically for the evaluation of questionable credit claims early in the processing stream and prior to issuance of a refund. The IRS continues to work to refine and improve our processes.”

    Can you believe that?

    So next year millions of illegal immigrants will once again rake in billions of dollars that they are not entitled to and the IRS will continue to look the other way.

    This is yet another example of how the federal government has different rules for illegal immigrants than they have for the rest of us.

    In fact, the Obama administration has now instructed government officials to use “prosecutorial discretion” in deportation cases. In essence what that means is that if an illegal immigrant has not been convicted of a crime, it will now be highly unlikely that he or she will be deported.

    Over the past several decades, we have seen tens of millions of illegal immigrants come pouring into our country. They have taken our jobs and they have terrorized our communities. There are now 1.4 million gang members in the United States, and that number has increased by 40 percent since 2009. Most of that increase is due to illegal immigration.

    Illegal immigration is one of the biggest national security threats that we face, and yet the federal government continues to look the other way.

    Has the federal government gone completely insane?

    article here:
    http://www.infowars.com/millions-of-...-than-you-are/

    originally here:
    http://endoftheamericandream.com/arc...s-than-you-are
    I am the spoon.



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  3. #2
    so $#@!ing past being pissed off

  4. #3
    Amazing isn't it? But don't worry folks, our economy is in a recovery.
    I am the spoon.

  5. #4
    And yet the IRS continues to rip off law-abiding, actual citizens.
    RON PAUL 2012

    LIBERTY FOR LIFE

  6. #5
    Quote Originally Posted by Eisenhower View Post
    And yet the IRS continues to rip off law-abiding, actual citizens.
    Of course.
    I am the spoon.

  7. #6
    this actually isn't that big of a deal, and is a tiny drop in the bucket compared to EIC and adoption credit fraud. i've seen fraudulent returns come through our data warehouse with 6 digit refunds because of the adoption credit being abused, and it's VERY common for low income folks to mysteriously add a 'cleaning' or 'construction' business that makes a couple of grand with no expenses just to bump them into the peak income bracket to max out EIC (which for 3 kids is like almost 6k alone). if you think this is a big deal, do a little more research... lol. the IRS knows about this $#@!, and they try to do crap here and there to catch people who abuse the system. but the entire scheme is fundamentally broken, as long as there is a criminal income tax system there will always be people abusing the hell out of it. it needs to go away completely.

  8. #7
    I would be willing to bet that there are very significantly higher number of people exploiting that loophole who are citizens or in the country legally than those here illegally.

    I would also bet that this is a tiny percent of all filers- in both the legal resident and illegal resident categories.

    It is estimated that 2 million illegal immigrants are filing fraudulent tax returns each year and that they are pulling in more than 4 billion dollars in tax refunds every year that they are not entitled to.
    2 million would be about 20% (there are an estimated 10.6 million in the country illegally) and sounds way to high.

    The government does not track what tax returns are from legal or illegal residents so the number has to be made up.
    http://www.usatoday.com/money/perfi/...ntstaxes_N.htm
    NASHVILLE — The tax system collects its due, even from a class of workers with little likelihood of claiming a refund and no hope of drawing a Social Security check.
    Illegal immigrants are paying taxes to Uncle Sam, experts agree. Just how much they pay is hard to determine because the federal government doesn't fully tally it. But the latest figures available indicate it will amount to billions of dollars in federal income, Social Security and Medicare taxes this year. One rough estimate puts the amount of Social Security taxes alone at around $9 billion per year.

    Paycheck withholding collects much of the federal tax from illegal workers, just as it does for legal workers.

    The Internal Revenue Service doesn't track a worker's immigration status, yet many illegal immigrants fearful of deportation won't risk the government attention that will come from filing a return even if they might qualify for a refund. Economist William Ford of Middle Tennessee State University says there are no firm figures on how many such taxpayers there are.

    "The real question is how many of them pay more than they owe. There are undoubtedly hundreds of thousands of people in that situation," Ford said.

    But some illegal immigrants choose to file taxes and write a check come April 15, using an alternative to the Social Security number offered by the IRS so it can collect income tax from foreign workers
    The agency estimates that for 2005, the last year for which figures are available, about $9 billion in taxes was paid on about $75 billion in wages from people who filed W2 forms with incorrect or mismatched data, which would include illegal immigrants who drew paychecks under fake names and Social Security numbers.

    Spokesman Mark Hinkle says Social Security does not know how much of the $9 billion can be attributed to illegal immigrants. The number is certainly not 100%, but a significant portion probably comes from taxes paid by illegal immigrants.

    Nine billion dollars sounds like a lot of money, and it is, but it is only about 1.5% of the total $593 billion paid into Social Security in 2005.

    The impact on Social Security is significant, though, because most of that money is never claimed by the people who pay it but instead helps cover retirement checks to legal workers.

    Federal law prohibits paying Social Security to illegal immigrants, but the administration factors in both legal and illegal immigration when projecting the trust fund's long-term solvency.
    Last edited by Zippyjuan; 05-12-2012 at 11:24 PM.

  9. #8
    Quote Originally Posted by Eisenhower View Post
    And yet the IRS continues to rip off law-abiding, actual citizens.

    Law abiding citizens are fools.
    “One may come to the aid of another being unlawfully arrested, just as he may where one is being assaulted, molested, raped or kidnapped. Thus it is not an offense to liberate one from the unlawful custody of an officer, even though he may have submitted to such custody, without resistance.” (Adams v. State, 121 Ga. 16, 48 S.E. 910).



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  11. #9
    Why are they getting tax returns to start with? And why the Dick are they getting more than they payed in taxes? I'm beyond pissed, I'm confused.
    "Corruptisima republica plurimae leges."

    ---- Tacitus

    I love von Mises and Emma Watson

  12. #10
    Quote Originally Posted by KingRobbStark View Post
    Why are they getting tax returns to start with? And why the Dick are they getting more than they payed in taxes? I'm beyond pissed, I'm confused.
    because with the crackdown on employers, most aren't hiring them under the table anymore. so they file to get an ITIN or buy a stolen SSN so the employer can file their withholding taxes for them... then they file and load up on dependents using the stolen SSN or ITIN. the stolen SSN thing is a really big problem too that's been ongoing for a while...

  13. #11
    Has the federal government gone completely insane?
    Long since - and the sooner you come to terms with that, the better off you will be in dealing with what is to come.

  14. #12
    So how does this fit in with some stereotypes of illegal aliens- that they come here to be lazy and collect welfare and make babies? This seems to indicate that they have jobs and file taxes.

  15. #13

    keep your eye on the problem

    You could take every illegal alien, put him on a truck, haul him across the border, build an impregnable wall so that he can never get back in, and you would not have slowed the runaway train of economic catastrophe by any measurable amount. Illegal aliens are not the cause of our problems. Runaway government is the cause of our problems.
    The proper concern of society is the preservation of individual freedom; the proper concern of the individual is the harmony of society.

    "Who would be free, themselves must strike the blow." - Byron

    "Who overcomes by force, hath overcome but half his foe." - Milton

  16. #14
    But...you can't ever speak out against illegal immigration...if you do you're anti liberty and racist!

  17. #15
    Quote Originally Posted by Traditional Conservative View Post
    But...you can't ever speak out against illegal immigration...if you do you're anti liberty and racist!
    No.

    You would be considered anti-liberty in most libertarian circles, though.

  18. #16
    Good for them, I hope millions more do the same.
    Quote Originally Posted by Ron Paul
    Perhaps the most important lesson from Obamacare is that while liberty is lost incrementally, it cannot be regained incrementally. The federal leviathan continues its steady growth; sometimes boldly and sometimes quietly. Obamacare is just the latest example, but make no mistake: the statists are winning. So advocates of liberty must reject incremental approaches and fight boldly for bedrock principles.
    The epitome of libertarian populism



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  20. #17
    Quote Originally Posted by bluesc View Post
    No.

    You would be considered anti-liberty in most libertarian circles, though.
    Probably. That's way I don't call myself a libertarian.

  21. #18
    Quote Originally Posted by Traditional Conservative View Post
    Probably. That's way I don't call myself a libertarian.
    You made your views very clear with your choice in username.

    You must remember that you're in the "liberty forest", though, so many here will understand what liberty is and will strongly disagree with you on most things.

  22. #19
    Quote Originally Posted by bluesc View Post
    You made your views very clear with your choice in username.

    You must remember that you're in the "liberty forest", though, so many here will understand what liberty is and will strongly disagree with you on most things.
    I probably agree with you guys on at least 90% of the issues, but I like to debate issues where we disagree, so it seems as though we disagree on more issues than we actually do. I just don't like spending time agreeing with people on message boards.

  23. #20
    I probably turned 50 shades of purple the first time I saw that article. I don't give a damn whether legally or "illegally" immigrated to this country. The bottom line is that fraud is being committed, which is a crime, and it should be punished. And, rather than jailing these people, I believe they should be deported. Why victimize the US taxpayer further by jailing them and adding more debt? Additionally, unless the money could be easily seized for repayment of the fraud, then don't waste any resources trying to collect.
    The ideas of economists and political philosophers both when they are right and when they are wrong are more powerful than is generally understood. Indeed, the world is ruled by little else. Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist. Madmen in authority, who hear voices in the air, are distilling their frenzy from some academic scribbler of a few years back.



  24. #21
    LadyB, please delve further into Bastiat's writings... if men have no right to restrict the movement of individuals, from where does government derive such a power?
    Quote Originally Posted by Ron Paul
    Perhaps the most important lesson from Obamacare is that while liberty is lost incrementally, it cannot be regained incrementally. The federal leviathan continues its steady growth; sometimes boldly and sometimes quietly. Obamacare is just the latest example, but make no mistake: the statists are winning. So advocates of liberty must reject incremental approaches and fight boldly for bedrock principles.
    The epitome of libertarian populism



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