Tax System Allows Illegal Aliens to Collect Billions from the IRS Every Year

Nearly one half of all Americans pay no income tax at all each year. Most of us have learned that fact recently through the extensive debt ceiling debate and the debate over just how much the “rich” should be paying in income taxes. Not only do many Americans pay no income taxes, many actually get money back from the government in the form of child care payments.

Did you know that many, if not most, illegal aliens pay no income taxes. That’s because they have no Social Security numbers and so do not normally file tax returns. However, wages earned illegally in the United States are still taxable, and the IRS makes available a special tax identification number used by illegals called Individual Taxpayer Identification Numbers (ITIN). These ITINs are provided so that people working illegally in the United States can file tax returns. How many illegal aliens do you think are going to cough up taxes to the IRS for working illegally in the USA?

Well, it turns out quite a lot of illegal aliens are filing tax returns. They do this not to pay taxes but to get a generous payment back from the IRS. It turns out that there is a quirk in the tax code called the Additional Child Tax Credit (ACTC), which reduces taxes owed by people with children. If the tax credits exceed the other taxes owed, the difference is then refunded to the tax filer. If illegal alien tax filers have their taxes drop below zero because of tax credits for children, the IRS sends a check to these individuals for the amount below zero. Illegal aliens are claiming children not only in the USA, but all of their children living in foreign countries!

According to the most recent numbers, these ITIN filings have resulted in an increase of ACTC payments from $924 Million in 2005 to $4.2 Billion last year. Payments of this magnitude are just one more incentive to attract the millions of poor illegal aliens to the Unites States. Why does the IRS continue to make these obviously fraudulent payments? Because it’s the law and the IRS has to make the payments. More information on this topic can be found in an excellent article written by Michelle Hirsch at The Fiscal Times.

How do illegal aliens know how to scam the system?

There are plenty of organizations in the country, like the National Council of La Raza, who are advocates for illegal aliens. They do everything in their power to attract and keep the illegal alien population growing in the United States, and have no problem ensuring that all illegal aliens have access to these phony payments from the ACTC.

Can Anything be Done to Prevent the Illegal Alien IRS Scam?

This is one more argument for a complete overhaul of the United States Tax Code. A lot of discussion has occurred on this topic, and now is the time to start doing something.

Please send this article to your Congressman and Senator in Washington, D.C and let’s get this provision of the tax code fixed. No matter what one’s position is on illegal immigration, there is no basis for giving them extra money from the US Treasury for child credits. This is a complete scam!

I hope and expect this might come up at tonight's Republican Presidential Debate. Let’s hope the candidates have a good response to this particular issue.