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The inside story of how illegal immigrants have taken billions because of tax loophole - and what your government is going to do about it
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The think just how much four point two billion dollar says.
And about this -- 24 point two billion dollars each year.
Now we saw that money going -- -- to illegal immigrants.
Undocumented workers are cashing in tax loop -- lower tax provision that the IRS knows all about but also -- is a treasury department's inspector.
General for tax administration he joins us nice to see you sir thank you for having me okay explained they -- this refundable credit.
Yes before approval credit is something that is an efficient method of providing benefits to people who are working families who are vulnerable.
Two shortfalls in their income and the problem is that this type of credit is very vulnerable to.
Being violated to abuse.
Okay so let's say that died that I've had I've -- -- undocumented worker and I make 101000 dollars a year and I have ten children.
And I take 101000 dollars and a tax credit.
You -- it depends on how you do it the bottom line is anyone who burns and -- in this country whether or not they're here legally or not.
They're required to file taxes and have to pay taxes depending upon the threshold of the amount of money that there are.
And so in order to facilitate this the Internal Revenue Service.
Had devised -- kind of write something called the fight to end the individual taxpayer identification number.
And that is used in lieu of a Social Security number in the event that the person who's not here legally.
Doesn't have a Green card or into that have been the other reason for being in this country.
And so what is occurring is that people are learning that there are terrorists is not really checking out -- how those iTunes are being used.
And are issuing refunds.
-- amount of a thousand dollar per child.
And -- we found five instances of individuals receiving over 101000 dollars in refunds for children who.
Are not even in the United States of America.
I've -- the -- knows about this.
So I mean I -- in the first month.
The IRS isn't doing anything wrong right they're just implementing that the policies of the congress is given them right -- You know very -- is that fair to say.
What we -- to disagree with the iris is interpretation of the lord.
In 1996.
The exact same issue -- rules as it relates to their current income tax credit.
And congress in its wisdom passed legislation clarifying.
Who was eligible for that.
And meeting that it was only someone who had a Social Security number or what was otherwise legally in this country.
We subsequently been looking at this issue for now for almost ten years have determined that eight.
That more of that -- to -- the ITC also applies to be additional child tax credit.
The iris has taken a different position on that.
They claim that the war and -- really clear and unless and until congress clarifies that they're going to implement the more the way they've been interpreted it.
So four point two billion dollars in credits went out near forty test -- they did have to know keep in mind that when we first -- -- this problem in 201.
That it was only a 160 million dollars and in 2524.
Night and this is undocumented -- these -- people who who -- -- Social Security -- undocumented workers with those numbers you know -- catch with certain say they're undocumented but.
At the result of not having Social Security numbers or Green cards or another form of bill documentation proving that there are American citizens.
We have to assume that's the case Atlanta city taking some heat forum essentially blowing the whistle on us well my job as an inspector -- who should point out shortcomings in the way the system of tax administration.
Is affected.
And so on.
You know I -- that he.
Is as is -- anyone appalled by -- on Capitol Hill.
Yes actually a number of member of -- congress have introduced legislation to address this problem and fortunately it hasn't been an -- think this is stunning.
Thing you'd think that the American music there's so much fighting on capital -- we have a situation of four point two billion dollars to people who live with these identification numbers -- -- workers -- unless there's some of the -- -- -- undocumented workers with kids in other countries to get -- -- -- find it hard to believe.
But that they can't work together -- collect.
Four point two billion dollars this year 124002005.
Who knows -- to be next here.
It's a growing problem.
Now keep in mind.
There's no question that people don't believe that children should suffer because their parents may or may not have done something legal or illegal but at the same time.
It's my job to point out when the iris is doing what -- supposed to do and and there's just not doing when it does something it is not supposed to do and that's what we've done here.
Instead -- just thank you sent this my pleasure thank you for having.
