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


    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….?

  • http://aol leonard jones

    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!