More babies=more $$$! (whether your own or a borrowed baby!)….
That is it in a nutshell—and the IRS says it doesn’t have the authority to check the immigration status of those using the ‘Additional Child Tax Credit’ to often times get more money back from the federal treasury then they put in!
Here is the story from the Washington Post on Friday. By the way, when you read this keep in mind that the Maryland Dream Act proponents say that, in order for the illegal alien to obtain taxpayer support for college tuition, the parents or the student must be filing a tax return (well, actually they say “paying” taxes). We now see more clearly that they are already filing tax returns in order to get extra goodies from you!
WaPo (emphasis mine):
The Internal Revenue Service allowed undocumented workers to collect $4.2 billion in refundable tax credits last year, a new audit says, almost quadruple the sum five years ago.
Although undocumented workers are not eligible for federal benefits, the report released Thursday by the Treasury Inspector General for Tax Administration* concludes that federal law is ambiguous on whether these workers qualify for a tax break based on earned income called the additional child tax credit.
Taxpayers can claim this credit to reduce what they owe in taxes, often getting refunds from the government. The vagueness of federal law may have contributed to the $4.2 billion in credits, the report said.
Wage earners who do not have Social Security numbers and are not authorized to work in the United States can use what the IRS calls individual taxpayer identification numbers. Often these result in fraudulent claims on tax returns, auditors found.
Their data showed that 72 percent of returns filed with taxpayer identification numbers claimed the child tax credit.
The audit recommended that the IRS seek clarification on the law and check the immigration status of filers with taxpayer indentificaion numbers.
IRS officials, in response to a draft of the report, agreed to consult with the Treasury Department on the law. But they said they have no legal authority to demand that filers prove their legal status when the tax agency processes returns.
Adding insult to injury!
First, young AmeriCorps workers help the ‘po folks’ fill out their tax returns. CASA de Maryland gets AmeriCorps volunteers through the Maryland Governors Office on Service and Voluntarism (here) but I don’t know if they use the “kids” for this purpose—Corps members do tax returns elsewhere in the country, so they may do them in Maryland as well.
That is bad enough, but get this! The IRS gave CASA de Maryland grants to TEACH IMMIGRANTS HOW DO DO THEIR TAX RETURNS! Here CASA received $50,000 in 2011 from the IRS to run tax prep clinics! Amazing!
For enterprising Maryland legislators, how about a similar audit of Maryland’s Child Tax Credit!
* See the whole Inspector General’s report here.