$4.2 Billion in Tax Credits for Illegal Aliens



If there’s one government authority, the very mention of which, sends chills down the spines of most Americans it is the Internal Revenue Service (IRS). Most Americans would sooner submit to a root canal than face and IRS audit. However, to many illegal aliens, the IRS is just one more government agency that turns a blind eye to their illegal behavior.

According to the report released today by the Treasury Department’s Inspector General (IG), tax filers using Individual Taxpayer Identification Numbers (ITINs) milked the Additional Child Tax Credit (ACTC) for $4.2 billion last year (up from $924 million in 2005) thanks in large measure to advocacy groups that counsel illegal aliens. The vast majority of ITIN filers are illegal aliens. The ACTC is a tax credit intended to help low income working Americans with dependent children.

The IG report finds that illegal aliens disproportionally benefit from the ACTC, even though, in the IG’s opinion, ITIN filers should not even be eligible for the credit. Fourteen percent of tax filers using Social Security numbers claimed the ACTC, while 72 percent of ITIN filers claimed the credit. The IRS has no real way of verifying claims that ITIN filers have dependent children in their home countries.

“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,” states the report. Moreover, the IG report notes numerous examples of the IRS refusing to take action against ITIN filers who claim tax credits to which they are not entitled.

The same report also faults the IRS for failing to notify and protect citizens who have had their Social Security Numbers and identities stolen by illegal aliens. Even when the IRS has found compelling evidence that Social Security numbers are being used fraudulently, the IRS has failed to act, or even make unsuspecting Americans aware that their identities have been compromised.

About Author

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Ira joined the Federation for American Immigration Reform (FAIR) in 1986 with experience as a journalist, professor of journalism, special assistant to Gov. Richard Lamm (Colorado), and press secretary of the House Defense Appropriations Subcommittee. His columns have appeared in National Review, LA Times, NY Times, Washington Post, Newsweek, and more. He is an experienced TV and radio commentator.

10 Comments

  1. avatar

    I’M AN AMERICAN CITIZEN, MARINE VETERAN OF WWII AND KOREA. SERVED TO PRESERVE THE PEACE AND DIGNITY OF OUR COUNTRY. NOW WE ARE FACED BY ILLEGAL ALIENS, CRIMUNALS IN FACT, WHO ARE FISCALLY RAPING THE AMERICAN PEOPLE, WHO NOW BARELY MAKING IT. CRIMINALS SHOULD BE TREATED AS CRIMINALS! FOREIGN CRIMINALS SHIPPED BACK TO WHERE THEY RUINED THEIR COUNTRY! SEMPER FI!!

  2. avatar

    I am not surprised that groups advocating for illegals would also be showing them how to rip-off the system. What is the difference between these people and home invasion robbers? Americans who advocate for illegals are essentially traitors to their own country and should be prosecuted.

  3. avatar

    The Illegals are always protesting, union folks protest, and others from the left. Why don,t we the real American people organize and make ours signs and march on our Capitols and Washington and make our voices heard and let them know we have had enough!!.We are just nice folk, we don’t rock any boats and we sit back and take what ever and let them walk all over us. Lets take back our country. AMERICA THE BEAUTIFUL11

  4. avatar

    This is total lunacy! I work very hard and have since I was a teenager. I hate seeing my tax dollars going to any type of benefit for these people. This is free money to them. Another incentive to come to America and continue to drop anchor babies! We must at every opportunity, call & write to our government officials and let them know that we will not stand for this. Please take the time to hand write a letter. The e-mail can be deleted so easily, but the letter will sit on someone’s desk after it’s opened, and will get passed around for others to view, and may just catch the right eye. We’ve got to keep our fight against these and other UN-American acts in the forefront of the minds of these worthless politicians. No to Amnesty! No to future benefits, no to Sanctuary Cities!!!

    Stand up America…Let your voices be heard!!! We are still the majority!

  5. avatar

    It keeps on getting worse and worse. will we ever get a true accounting of the cost of these illegals? Bet its staggering and someone knows.Oh yes, all those pencil pushers and think tanks know the entire cost.I think they are afraid to tell us as we might rise up and throw out the bastard pols who have and continue to ruin us. Wake up folks. We need to throw em out! The illegals that is, we can vote out the ilegal loving pols easily enough.

  6. avatar
    Ana Zuniga-Maus on

    It will end when we the American people and the ones paying for all this madness, unite and stand together to say, WE GOT ENOUGH. This illegals that use ITINS also declare maximum number of dependent, to avoid paying any taxes and use to the max any window open to get extra money. This is reality, you can heard the Hispanic media, like Univision, having forums and letting them know how to do it, they actually instruct them how to cheat the system, and our elected officials just look the other way and let them do it.

  7. avatar

    And if we’re not getting the short end of the stick already, now this! Thanks to the ongoing ineptness & spinelessness of our government, American taxpayers get SCREWED AGAIN!!