Posted by: Ann Corcoran | December 3, 2011

FAIR: Child tax credits entice immigrants to enter the country illegally

I’ve written about this issue before, here, but since the subject of how illegal aliens can file tax returns (and why they do!) keeps coming up, this bears repeating.

The first misconception many people have when they hear about the provisions of the Maryland Dream Act (which is continuously misinterpreted) is that it supposedly says that the student wishing a taxpayer subsidized education must have “paid taxes” or his or her parent must have “paid taxes.”

They do not need to have “paid” taxes only have filed a tax return.    O.K. so then how does an illegal alien, without a social security number, file a tax return?   Incidentally, that was one of the earliest questions asked in the Poolesville debate between Del. Patrick McDonough and PJ Hogan (here).

This article from FAIR’s Immigration Report that I  had in my reading pile from October (and just got around to reading) gives a pretty good explanation of what is going on with this—filing a tax return and dipping into the federal treasury (and your pockets).

Basically an Individual Taxpayer Identification Number (ITIN) is a way for non-citizens to have an ID through which they ostensibly will pay taxes.  However, as FAIR (Federation for American Immigration Reform) reports, and the Treasury Department Inspector General confirms, it’s a way to access benefits without paying any taxes.    Thus it’s bogus when anyone says of the Maryland Dream Act—well they have to pay taxes.

Redistribution of wealth to illegal aliens?  Sure looks like it!

From FAIR (emphasis mine):

People filing tax returns using Individual Tax Identification Numbers (ITINs) collected $4.2 billion in Additional Child Tax Credits (ACTC) in 2010, according to the Department of Treasury Inspector General (IG). The vast majority of people filing ITIN returns are illegal aliens who are ineligible to receive Social Security numbers (SSNs). The ACTC allows low-income earners to receive a credit of $1,000 per child, and if they owe no taxes, like virtually all illegal alien households, they get that $1,000 per child paid to them.

According to the IG report, 72 percent of tax returns filed by ITIN users claimed the ACTC, compared with just 14 percent of returns filed by people using SSNs. The report, which was issued September 1, states, “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.”

The IG’s hypothesis is borne out by the sharp increase in payouts from the Treasury under the ACTC program, rising from $924 million in 2005 to $4.2 billion last year. One of the likely reasons for the dramatic increase in ACTC claims by ITIN filers is the influence of illegal alien advocacy groups (some of which receive government funding). These groups counsel illegal aliens to file returns because doing so would be beneficial to them if amnesty were to be enacted, and to take advantage of provisions and loopholes in the tax law that allow them to receive billions of dollars from the government. In addition, it is virtually impossible for the Internal Revenue Service (IRS) to verify or disprove the existence of a dependent minor who resides outside the U.S.

There is more, read it all!

You can see now why filing a tax return is not a big deal for illegal aliens (the IRS does not coordinate with ICE!) and the benefits are lucrative.  You have given illegal aliens $1000 per kid annually through a tax credit, educated the kids through high school (never mind other bennies like food stamps) and now CASA de Maryland wants you to support the “kids” college educations.

And, as I reported here, they even get a grant from the IRS to teach illegal aliens how to file tax returns (a ticket to benefits)—what a racket!



  1. Ann,

    During the effort to stop SB 167 (MD Dream Act) last April, we contacted the Comptroller’s office to determine how an illegal alien could produce tax returns on income they were not eligible to earn. The Comptroller’s office sent us the following email, which led to the introduction of an amendment to mandate that the illegal alien sign an authorization to cross-reference the tax report filed against the SSN that was used to earn the income. As you know, the tax ID number is NOT an authorization to work.

    If the alien was found to have participated in fraud, or the theft of the SSN, then that alien would be subject to prosecution, not be enrolling in college. And, we fully intended to turn over the information to ICE.

    Here is the letter we (Pat McDonough’s office) recieved from Franchot’s office on March 30, 2011. I am going to leave out the name of the person who sent us the letter, but be assured that it has become part of the lawsuit.


    Ms. Payne,

    This is a follow-up to our telephone conversation this morning regarding individuals filing Maryland Individual Tax Returns using ITIN’s (Individual Taxpayer Identification Numbers).

    Based on my experience with the tax returns filed using ITIN’s the individual will have a W2 that has a social security number (obviously not belonging to them) so the employer may not be aware that the employee is not “legal”.

    Due to our social security/ITIN validation process we will not allow a return with an “invalid SSN”, therefore, the individual will obtain an ITIN with the IRS for tax filing purposes, if the ITIN “validates” the income and withholding from the W2 are allowed.

    Regarding your questions about how the SSN/ITIN is validated, the process is done through the IRS.

    Regarding your question “could we verify a return was filed using an ITIN and a W2 with a SSN” the answer is yes, if the individual has signed an authorized disclosure form and this is done through our Disclosure Officer.

    Let me know if you have any questions or need additional information.

    Special Projects
    Revenue Administration Division
    Office of the Comptroller

  2. […] taxes.  How do you get a tax credit when you don’t pay taxes?   LOL! or is it like those child tax credits illegal aliens are reaping—getting money back without putting any […]

  3. […] That is what a Texas Congressman says as he leads the charge to change how illegal aliens can get child tax credits.  They need only file a return using an Individual Taxpayer Identification Number (ITIN), not even owe any taxes, but get a redistribution of your money.   I told you about this shocking program here and here. […]

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