Latest Scam: Illegal Aliens Getting Bigger Tax Refund Checks


Your bloated government at work–
Not only are illegal aliens getting bigger tax refunds this year… They’re claiming the tax credit for kids who live in Mexico – lots of kids in Mexico.
WTHR reported, via Free Republic:

Millions of illegal immigrants are getting a bigger tax refund than you.

Bob Segall, of WTHR reports finding a massive tax loophole that provides billions of dollars in tax credits to undocumented workers and, in many cases, people who have never stepped foot in the United States. And you are paying for it.

Inside his central Indiana office, a longtime tax consultant sits at his desk, shaking his head in disbelief.

“There is not a doubt in my mind there’s huge fraud taking place here,” he said, slowly flipping through the pages of a tax return.

The tax preparer does not want you to know his name for fear of reprisal, but he does want you to know about a nationwide problem with a huge price tag.

He came to 13 Investigates to blow the whistle.

“We’re talking about a multi-billion dollar fraud scheme here that’s taking place and no one is talking about it,” he said.

The scheme involves illegal immigrants — illegal immigrants who are filing tax returns.

How it works

The Internal Revenue Service says everyone who is employed in the United States – even those who are working here illegally – must report income and pay taxes. Of course, undocumented workers are not supposed to have a social security number. So for them to pay taxes, the IRS created what’s called an ITIN, an individual taxpayer identification number. A 9-digit ITIN number issued by the IRS provides both resident and nonresident aliens with a unique identification number that allows them to file tax returns.

While that may have seemed like a good idea, it’s now backfiring in a big way.

Each spring, at tax preparation offices all across the nation, many illegal immigrants are now eagerly filing tax returns to take advantage of a tax loophole, using their ITIN numbers to get huge refunds from the IRS.

The loophole is called the Additional Child Tax Credit. It’s a fully-refundable credit of up to $1000 per child, and it’s meant to help working families who have children living at home.

But many undocumented workers are claiming the tax credit for kids who live in Mexico – lots of kids in Mexico.

“We’ve seen sometimes 10 or 12 dependents, most times nieces and nephews, on these tax forms,” the whistleblower said. “The more you put on there, the more you get back.”

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  • mg4us

    So help me understand. . .how do these illegals get this check? Is it mailed to them or do they pick it up?

    In either case, lets enact an “On the spot audit”. . . verifying the information, where they live and how they get money.

    Oh and did I say, we check them out from the comfort of our INS cell BEFORE sending them back to wherever they come from? Or do we send them to federal prison for committing tax fraud? Decisions decisions. . .

    Perhaps rather than sending illegals home where they try again to come back, we take them on a one way trip to Afghanistan. . lots of land there for them to start a new life. . .

    Time to enforce our laws, our borders and our rights. . .

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  • Sickofobama

    This is so maddening!

    There are probably also getting ballots with their checks saying if you fill out this ballot for all Democrats you can cash that check.

    ABFO 2012!

  • Finncrisp

    What will it take to end this nonsense? These boobs need to go…

  • Mark1957

    It happens hundreds of times a day. Working as a chef for a national restaurant chain I have hired plenty of kitchen staff. It is all too common to hire to a young hispanic worker that would list 8 to 10 dependents on thier tax forms. Some as young as 17 yrs old claiming to have 8 kids. They ALL do it, and the corporate heads did nothing when I would question it.

  • Greg

    In febuary note the retail tax preparation booths set up in large dept stores with lots of nonwhite transient looking persons in line to process their tax returns with little to no documentation in hand. The retail tax preparers are a tool to getting the tax credits.
    When I file my taxes I have to have a SS number for myself and for each dependent named as a deduction which is computer sorted by the IRS to catch multiple claims. A divorced person that trys to file for a sibling that is claimed by the ex can be tied up by the IRS for years and salary garnished.

  • Kelly Britton

    OMG! You said the “I” word! Shame on you! ugh

    Personally, I’m offended by the letter P, so no using it folks. Oh, and the letter Q is a little iffy to me, so let’s not use it either.

    As for Illegals (I’m so bad) getting tax refunds…in the Libs world, the more children you have the more benefits you get. Why do you think that so many people stay on welfare? It’s much easier to just have child after child when you know it’s bringing in more money on a monthly basis. Illegals who receive tax refunds is just par for the course. And they wonder where our money is going…please. This has been allowed for so many years it’s not even funny any more. This is one reason I think we need to go to the fair tax, abolish income tax and put the IRS on the unemployment line. Make it less profitable for Illegals and they’ll head to a country that is willing to let them sit on their butts all day long and have child after child.

    Don’t get me started on social security.

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  • Cee

    I hope any immigration benefit (for legal as well as illegals) would include checks on tax forms for the duration the individual lived in the country. An often discussed issue on the South Asian forums (often sponsored by attorneys) is for guest workers (H-1B and L1 visa holders) to obtain ITIN numbers for visiting parents. They not only claim them for the year of their visit but use them to obtain Head of Household rates and claim them after they return to their home country with the excuse that the guest worker is sending home money to support their family there.

    There is also fraud discussed by the guest workers where they are paid a minimum possible salary and a per diem (not taxed) rather than the proper fully taxable (to worker and employer) salary.

  • Blacque Jacques Shellacque

    This is the kind of crap that happens with an overly-complicated tax code that is constantly altered and massaged to give breaks to favored constituencies. It’s time to dump all the credits and deductions and set ONE rate for everyone.

    As for the issue of illegal immigration, that problem is easily addressed – our current immigration laws need to be enforced. NO EXCUSES.

  • Little David Puddy

    TAX REVOLT!

    The 50% (those of us who actually pay taxes) just need to stop paying all at once.
    Someone needs to coordinate this.
    It’s the only way to stop the out of control spending, corruption, and fraud.

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  • NeoKong

    You know…the sad part is that at the IRS they know what the scam is and do nothing to stop it.
    Don’t tell me that those returns do not get flagged and reviewed.
    Of course they do.
    Why the preferential treatment….?

  • Went to dentist in Dalton, Ga. several weeks ago and and the lady cleaning my teeth was very upset and told me that she had gone to the bank during lunch to cash a $5.00 check to get money to eat. The teller told her I hope you are not cashing a big tax refund as the 2 previous customers, Hispanics, had done. Both driving new SUV’s with many children had just cashed for $16,000 and $18,000. The lady was divorced, in her early 60’s, under water with no help in sight. I am sick.

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  • olm

    Wow. Just wow.
    As someone else said, with ss numbers the IRS catches every single child claimed.
    It might be cheaper to give all workers a SS number and require that all dependents have SS numbers, legal or not.
    Ha………….can you imagine the revolt? It would make the occupiers look peaceful. What an incredible mess this country is in.
    The Mexicans won’t have to fight to get control of the SW. They’ll just buy it with the money we gave them. CA ought to be pretty cheap soon enough.

  • SelfEmployeedMomof3

    This sounds about right. If I wasn’t getting screwed by the government/IRS for being a small business owner something would seem wrong. How sad is that? Why do illegal aliens get a tax credit anyway? Don’t their anchor babies have SS#s? Can’t the track them? I get penalized for working for myself. The IRS audited me because of bad tax advice. Now I owe them an extra $32k. Makes me want to say to them fix the loophole and you’ll save what I owe you.

  • Tee Dub

    This is just the most disgusting aspect of the atrocity called Earned Income Credit (EIC). For millions, it’s a direct handout from the government. They file their Income Tax Return and get MORE money back than they ever paid in taxes. For what? Having children they can’t afford.

    Yes, YOUR tax money is given to people, not as a refund, but as a government handout. I’m surprised at how many people don’t know this.

  • imtired

    Okay…so, if by law, they don’t need to check SSN on the dependents and there is no law that requires them to verify the child credit is for a legitimate child living in the U.S., then why do they verify it for Americans? Does this mean I can start listing my neices and nephews and not provide a SSN? Hell, I am going to apply to be an illegal alien!

  • imtired

    I work part-time in a self-employed capacity; I earned $28,000 this past year; I paid in taxes on that money at the end of the year. You mean that an ILLEGAL immigrant (first law broken) commits fraud on a tax form for children who don’t live here and gets back more tax free cash than I made working? I am already sick of paying for their free healthcare, their free education, the free groceries, the free cell phones, and now I should just start sending them my money. Americans are their slaves! We work for them! What the hell……….

  • xiphos

    And I know of people who are being audited going back 4 and five years, who ‘owe’ $100.00 or less.

  • Here is specific evidence

    REPORT: United States Treasury Inspector for Tax Administration, United States Treasury
    Individuals Who Are Not Authorized to Work in the United States Were Paid $4.2 Billion in Refundable Credits
    http://www.treasury.gov/tigta/auditreports/2011reports/201141061fr.html

    Ironically, this is roughly the amount that would have been generated had the Congress passed the so-called “Bufftett Rule.” Meanwhile, Rome continues to burn.

  • Then there’s the tragic tale told by this poor woman. She came to the United States illegally but now lives in taxpayer-provided housing and receives taxpayer-provided medical care. Meanwhile, she avoids deportation because her nephew is a highly-placed elected official in the Obama Administration who made over $700,000 last year. Boston TV station WBZ-TV did an expose but it was never widely reported.

    Naturally, she feels completely entitled to the generosity of the American and Massachusetts taxpayer and deserves to be here.

    Part 1: http://youtu.be/t3NfIlw8xjE

    Part 2: http://youtu.be/9xeCsGrnudc

  • TJ

    Where in the US Constitution does the Federal government get the authority to give money out to people? I thought they had the authority to levy taxes.. but this does not include paying back more than those taxes to individual (here legally or not!).

  • tommy mc donnell

    this is another example of the enslavement of the american worker by the american politican. the money this colonizers are getting was looted from the paychecks of american workers by politicans claiming they need the money to pay for the services they provide you. the politicans dole this money out to the colonizers to buy the votes that keep them in office permanently. anybody here think this is a service for the taxes you pay? the politicans have billions to give away to people they brought here illegally, but every year they have to raise taxes. and the union leaders cheer!! anybody think lindsey graham would do anything to stop this.

    the american politican doesn’t have a clue about what is happenning to the money they have now but they do know they have to raise taxes.how long is the american worker going to put up with this tyranny. “the power to tax is the power to tyrannize.”

  • TheDefLeprecon

    Here in Illinois this is commonplace. Just about every town and city is a sanctuary city and an enabler. I’m sick of them cashing the checks, living in free housing, getting free medical care, using our schools, LINK, WIC, first ones in line at every food pantry and clothes giveaway, etc. They are also the first ones and the most, that have no problem appraching every sports team, league, park etc. and demanding a scholarship for their 4, 5, and 6 children to participate in activities and sports. While I have to make payment arrangement if I want mine to do anything. And if I say anything to anyone I’m shunned and called a racist. All while they talk on their cellphones and drive their Escalades. (I use a prepaid TracFone for emergencies only and have never owned a new vehicle). They are very demanding and expect everything to be given to them. If those in Congress would just have the cajones to do something about ALL of this fraud and abuse and vote buying schemes, we’d actually have money in this country for what we really need it for and maybe the taxpayers who pass for this folly would actually have more money in their pockets.

  • TheDefLeprecon, here in California, our politicians have turned entitlement into an art form in order to gain political advantage. See anything out of the ordinary.

    CHART: Percentage of Temporary Aid to Needy Families (TANF) Recipients Compared to State’s Percentage of U.S. Population
    http://www.twitpic.com/7emp1f/full

    In a complete coincidence, of course, the Democratic Party holds nearly 2-to-1 majorities in both Houses of the California Legislature and holds EVERY major statewide office.

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  • randyinrocklin

    the EITC was expanded as a compromise with the Dems to get his tax cuts through congress. you can blame GW Bush for that one. he was a wimp of a president and a wobbly RINO like his dad. what a shame. just as his dad enacted the ADA, bad law, now lawyers are making a ton of money and they are expanding more diablities to the list. think Romney will be conservative??? well look who’s endorsed him GHWB.

  • TheDefLeprecon

    @28 I have a niece and nephew who live in California w/ 7 kids. He’s a county employee. Bought a house they coudn’t afford, took out a huge loan on it, deaulted when the rates increased, and left the bank…taxpayers…holding a 600k debt owed! Where’s the money? Noone knows. They just spent it on crap. And they don’t care. Left the house, rented another one, he continues to fight left and right against any cutbacks in his job, the adult children are on disability etc….ya know….ADD, overweight, free community college, can’t work etc…they don’t care a wit about anyone or anything, all living in the same house w/ their out of wedlock grandkids, raking in the checks. My kids can’t pay for gas to school and his 7 year old grandkid has a free cellphone courtesy of mom’s freebie one. He sees his job as a golden parachute and counts down the days to retirement and when he can begin double dipping. California like Illinois is screwed. We’re all screwed w/ so many people thinking and living like them!!!! I don’t want to pay for people like this anymore! I never did and now more and more of them are demanding more from us!!!

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  • FACE-IT

    EITC http://bit.ly/foyBWO

    Illegal Aliens Getting Bigger Tax Refund Checks? http://bit.ly/IEst9r

    Depriving Illegal Immigrants of ‘Child Tax Credit’ http://bit.ly/zyMlHp

    2.3 million illegals received $4.3 billion in EITC tax refunds,
    in 2010…CONGRESSIONAL TESTIMONY……..
    ILLEGALS HAVE TO GO………NOW

  • ths DOESNT surprise me at all!!! they are also good at getting welfare while their husbands are out working and they also produce kids like rabbits!

  • Landru

    TeeDub
    “Yes, YOUR tax money is given to people, not as a refund, but as a government handout. I’m surprised at how many people don’t know this.”

    Yup. People are not aware of the scale of it. I went to the IRS stats site and found a summary for 2009 that showed a total of more than 100 billion paid out in the form of EIC, Make Work Pay (phased out in 2011, thank God), additional child, education and a couple other smaller ones. And to be clear, these are not refunds of taxes withheld, or reductions in taxes owed, but 100+ billion in net welfare payments going thru the fed income tax returns. Any welfare program needs to be a visible, transparent spending line item in the budget, and any recipient must get it in person and prove everything!

  • IndyReader

    The investigative piece was John Segall from WTHR in Indianapolis, not WTHI. A tax local tax preparer did the unthinkable and took redacted tax returns in to the local NBC affiliate. He has tapes of illegals admitting to the fraud because “someone needs to support all of” their relatives. This story needs to be blown wide open. Glad to see it reported here.

  • IndyReader

    *Bob* Segall, not John.

  • Delaware Bob

    When we get rid of all the illegal aliens, we will get rid of all the problems that go with them. THAT IS A FACT!

    When we see what the Supreme Court will allow states to do to enforce immigration laws, every state is going to have to pass the Arizona law. When is enough enough with these illegal aliens? The one who don’t have out jobs are using tis country as a welfare country. Look at all the anchor babies we paid for. 4.2 million over the last 18-20 years at the cost of $4,500 per anchor. When is going to end? Read first sentence again.

  • JACK SMITH

    THEY KNOW THE DOJ IS NOT GOING TO PROSECUTE OR DEPORT THEM SO WHY NOT FILE A TAX RETURN WHEN THEIR NOT WORRIED ABOUT GETTING CAUGHT. IF THE I.R.S. GO AWAY AND WE HAD A FAIR TAX THIS WOULD SAVE THE COUNTRY AND ALL PEOPLE ILLEGAL OR RESIDENT MILLIONS . OUR TAX CODES ARE SO STUPID.

  • AAHaNGTTIAM

    Ridiculous. Yet, it isn’t unusual to see a dozen kids in a Mexican family, or 15-20 Mexicans living in a 2-room house with only one bathroom. I’m surprised, though, that you haven’t caught on that it is now cosidered HATE SPEECH to call one of these lawless illegal aliens “illegal aliens”.

  • bobNnorthcarolina

    this report is also on Blaze.com with more detail—–After reading the full report, it should be the final straw for the IRS–get rid of the the IRS, and prohibit Obama and the rest from running for any public office until all of this wasted money is fully paid back to each and ever legal US tax payer via a Gov Check. This is a sham, fraud, morally criminal, and a slap in the face of every hardworking American. ENOUGH is ENOUGH. What the hell does these government servants thank they are doing.

  • ChillytheAlaskan

    Why should law abiding AMERICANS pay taxes when this BS is allowed? We should throw this in Obama’s face every time he opens his mouth asking us to pay more taxes.

    http://www.wthr.com/video?clipId=7054149&topVideoCatNo=103348&autoStart=true

  • bweezy

    @Tee Dub I’ve been aware of Earned Income Credit for a few years. Never even knew about it til I started helping a few friends (single moms) with their tax forms. So this mom I know, with 4 kids works 40 hours a week, making $10.00 an hour, no benefits. At tax time, she, of course, pays no taxes, but then is awarded $9,000.00 in EIC. She uses the money to pay bills she couldn’t keep up with during the year, medical bills, the kids need new clothes cause they’ve grown out of or worn out the old ones, she buys a whole side of beef to last the year (hopefully,) and gets her car (that she bought “used” with a previous EIC check) tuned-up, new tires, etc., ready to slug through another year. That’s one story. then another mom, uses her money to buy a new TV, all of her kids Ipads and/or cell phones, high name-brand shoes and clothes, eats out instead of cooking. You get the picture. Why does the govt do this? So the mom will work all year and they won’t have to provide welfare checks, food stamps and free medical for the whole family. (which would be a lot more expensive.) Personally, I’m torn because I’ve seen both sides.

  • Deanne

    CA and the usa is now Mexico. It was given to them along time ago. We just sat around and let it happen.

  • Mike

    Hey people we need to circle the wagons and vote. Because Obama has 240,000,000 dollars for his re-election. He has done more campaiging then the pass 35 president put together have. And you know that all the Illegal’s ,muslims, African americans and democrats will vote for him. And you know Ancorn will have all the cartoon characters voting twice. God help us.

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  • zc9658764

    Four different hispanic families, used the same address,in Indiana. A total of 29 thousand dollars was mailed to this one trailor. We are being leached by Mexico and the democrats make sure that no one interfers, they will call you racist and hate mongors if you speak up about the fraud.
    You have to wonder, what is the Agenda between the Democrats and Mexico? Why did Obama and Eric Holder dump 2,500 guns into Mexico, into the hands of the Drug Cartel.
    Billions and Billions of dollars is extorted from the American People and sent to Mexico, Mexico is becoming rich while we are going bankrupt. Mexico doesn’t have to have a welfare system because they have the Americans who are thier cash cows and they have the democrats who makes sure that no one interfers with the flow of money that finds it’s way into Mexico.

  • M. George

    These are refunds? On money paid in to the IRS by IPIN types?
    Refunds paid in, how can money be paid out that was not
    paid in to the system? Refunds suggest that money was collected
    by IRS.

  • Cathy

    Don’t expect Obama to do anything about this. He’s already pandering for LAH-TEENO votes with the Dream Act. If you try to bring it up in polite conversation, you will be labeled a racist teabagger. It is maddening indeed, yet some of our fellow Americans are still willing to entrust the government with their healthcare. Go figure.

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  • Davev Francis

    No discrimination or racial profiling from the Constitutional TEA PARTY, but are against the illegal immigration occupation from any person, from any country who came here without permission. The TEA PARTY comprises of small and large chapters throughout America of every nationality, every race and every religious denomination? Replace all lawmakers, Governors, Mayor, police chiefs and all elected administrators in every federal, state and municipal agency that doesn’t have the same judgment of the Tea Party leaders. If you cherish your freedoms from the corruption in Congress that will benefit all of us, we need a balanced tax code with no subsidies, loopholes for corporations, sugar industry or anybody else; a right to drill on the Peoples public lands and sea with its massive reservoirs of oil, natural gas for the consumer and to alleviate our out-of-control 16 trillion dollar deficit. No more government bail outs for the friends of the Oval Office. Begin ‘Attrition through Enforcement’ by enacting E-Verify to eject illegal aliens from the workplace. Complete coverage of ‘Secure Communities” for every state to locate the foreign criminals. Throw out all the profiteering lawmakers and clean house; put familiar TEA PARTY leaders in their place. Introduce a waste and reduction law, which begins the process of shrinking the size of government. Then according to a recent study by the Heritage Foundation another Comprehensive Immigration Reform package, better known as AMNESTY, would cost taxpayers an estimated $2.6 Trillion dollars to process and complete. Another giant price tag we cannot accept. Currently the 50 states have unfunded mandates of supporting foreign nationals of $113 billion dollars annually and counting.

    Voters need to insist from Congress, specifically from GOP House speaker, John Boehner of Ohio and Dave Camp of Michigan, as the Chairman of the powerful Ways and Means Committee to stop blocking the 50-state E-Verify bill. Call the Washington switchboard at 202-224-3121 Washington, DC. For further truth, not propaganda on this crisis matter, check with NumbersUSA website, where even Congress consults on immigration matters. Arizona dared to go up against the feds, who are a controlling mega-monster that are to blame for not enacting strict immigration laws. If entry by stealth as visa overstays are or just slipping past the agents at the border was classified as a felony, they numbers of people coming here would have been minimal. Now the U.S government has 20 million plus to contend with and so the best they can do, is antagonize individual states trying to protect their citizens from unfunded mandates. Arizona and a very few other states are ‘carrying the can’ for states as with Sanctuary States like California, Nevada, Colorado who have too much of a mushy backbone to join the fight? Also in the news are illegal aliens stealing $4-2 billion dollars in taxpayers’ money, owing to a gaping loophole in the child tax dependency credit.

  • M Shaw

    I really don’t blame the rich for taking their money out of this “GD-COUNTRY”, and placing it
    somewhere else. Because the Federal Government of this Country sit back take away all your interest on personal loans, car loans, and they downside the amount you can be allow on your mortgage. Don’t let your family get sick and have a fatal diease (cancer) our government will whole back on the disability check until his or her life has ceased. Money you have worked sick, injured, and also when you retire and you get I say $500 to $600 a month
    I’m hearing stories about they will only let you have $20, $30, or $40 on food stamps. Money we have work bleed, went to work injured, this government is no friend of ours. I’m so angry I can’t think straight. These illegal immigrants President is happy and laughing at
    America, so is everyone else. We the tax payers with our hands tied can’t do “anything but curse him, and talk about”. “EVERY COUNTRY SHOULD TAKE CARE OF THEIR OWN!!!!

    This been happening for years. Not when President Obama took office, and the IRS knows about it, with their ………………!!! That’s the whole reason why America Medicare & Medicade will soon be depleted. We are working and taking care of another country!!!!!

  • kkhmermetro2 .

    I understand about working, wither it legally or illegally but many of SSI and SSD beneficiary still claim their refund through SSI and SSD as a personal income. now that a scams.
    in this topic, it’s look like the IRS is trying to get more money into the government but end up illegal alien cheating taxes. no wonder, many legal and illegal immigration making a fortune on this scams and the government is doing nothing to stop them – just hurting the hard-working American.
    If that is not stupid, I don’t know what is.

  • tasharina1

    I wonder what would happen if millions of American’s start filing EIC for children they don’t have. I’m afraid as an American, they would catch me and come after me. Illegals don’t have to fear that. The government is not representing me, but foreign illegals that they force me, as a taxpayer, to pay for. I am now living in a foreign country being treated as an illegal alien, having my money taken from me and illegally given to illegals. I am tired of it and want my taxes back, as long as they keep using it for illegal purposes instead of helping Americans and America, which is what we pay taxes for.