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Illegal Aliens Steal Billions Via Tax ID #s

Tucked discreetly away in the ‘Economy’ section of the New York Times:

Thousands May Incorrectly Be Using Stimulus Tax Breaks


December 22, 2009

Thousands of American taxpayers incorrectly claimed more than $500 million in tax benefits under the Obama administration’s tax break for first-time home buyers, a government watchdog report said Tuesday.

That finding was one part of a report by the inspector general for tax administration that said the Internal Revenue Service does not know whether the majority of the $312 billion in tax breaks available through the American Recovery and Reinvestment Act are being claimed legitimately.

The report said that for businesses and individual taxpayers claiming tax relief under the 2009 act, “the IRS is unable to verify eligibility for the majority of Recovery Act benefits at the time a tax return is processed.”

The report said that as of July 25, 73,799 taxpayers had incorrectly claimed $504 million in credits in the program for first-time home buyers

The watchdog agency also said Tuesday in a separate report that an I.R.S. program that has issued more than 14 million taxpayer identification numbers to immigrants is plagued with fraud that costs the government billions of dollars in improper tax refunds.

The report found that nearly 70 percent of such numbers should not have been issued because their applicants provided murky documentation. The numbers, called individual taxpayer identification numbers, are typically used by immigrants who are not American citizens or by permanent residents who have entered the United States legally.

The identification numbers are valuable because they can be used to claim federal tax refunds and certain child tax credits. They cannot be used to claim social security payments or the earned income tax credit, a $49 billion federal program to low-income workers.

The numbers, first issued in 1996, do not change an immigrant’s legal status or permit employment.

The I.R.S. has said that between 1996 and 2003, the number holders reported owing taxes of $50 billion, though it has not disclosed the size of refunds claimed.

Based on nearly 1.2 million federal tax returns filed over 2008 and 2009, the report estimated that the fraud would cost the government more than $2 billion over five years.

In a written response to the report, the I.R.S. disputed its findings, saying that the sample base used was not indicative of the overall program.

What a lesson this is. As if we needed another.

Every single thing the federal government touches becomes encrusted with fraud and thievery.

So let’s put them in charge of still more.

This article was posted by Steve on Wednesday, December 23rd, 2009. Comments are currently closed.

8 Responses to “Illegal Aliens Steal Billions Via Tax ID #s”

  1. BillK says:

    Recall also the Colorado Supreme Court ruled just a few weeks back that searching for illegal immigrants via tax return is a violation of their “expectation of privacy.”

    • wardmama4 says:

      Yes, BillK and yet, and yet buried in this Obamination of a healthcare ‘reform’ bill is the very ‘right’ for the IRS to search everyones tax return.

      These people are liars, corrupt and unethical. They must be stopped.

  2. 64dodger says:

    This is just the tip of the iceberg. Billions have been stolen with illegal aliens and citizens claiming the earned income tax credit. Groups of Nigerians come to the US and scam millions from the earned income tax credit and when the IRS gets close they flee back to Nigeria. This could be stopped but there is no one attempting to do anything. All government programs are rife with fraud and theft.

  3. proreason says:

    “Every single thing the federal government touches becomes encrusted with fraud and thievery”

    Too kind Steve.

    The federal government is the FOUNTAIN OF FRAUD AND THIEVERY. It is a crime family of the highest order.

  4. Right of the People says:

    The only difference between the fed, particularly the IRS, and the mob is the mob will only break your legs, the IRS will ruin your life.

    God I need a drink!

  5. everettday says:

    If you really want to know what’s going on with illegal immigration, read the book “EWI Entry Without Inspection” by Fortuna Testarona Valiente. A good read that pulls no punches on the whole border mess.

  6. Liberals Demise says:

    ……….and the people in Washington want us to trust them with our health care?
    This and everything else is sealed with the “Kiss of Death.”

    Can you find a Witch Doctor in the yellow pages?

  7. wardmama4 says:

    I have always believed that most of the social ‘problems’ and ‘crisis’ in America would be almost nill if the Illegal Aliens were simply deported when found (and make the ‘finding’ a daily occurrence).
    What really gets me, is that these Illegals are willingly coming here to be the next version of Democrat slaves.

    This just proves it.

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