IRS Encourages Illegal Immigrants to Commit Identity Theft and Refuses to Inform Victims

Screen shot 2016-03-09 at 12.56.18 PMAnother tax season has arrived and with it comes the annual soaking of the American taxpayer. Every year, the Internal Revenue Service doles out billions of dollars in tax credits and other funds to illegal immigrants and their families, some of whom do not even live in the United States. Despite the wonderful work a few years ago by the Eyewitness News team at WTHR in Indianapolis, led by chief investigative reporter Bob Segall, the story gained widespread attention on Capitol Hill, but the situation remains unchanged.

Then, late last year, Segall identified another incredible scenario: even though the IRS is able to easily identify undocumented workers who are using fake Social Security numbers, the agency chooses to look the other way – even when a valid Social Security number belonging to an American citizen is used to file a tax return and wreaks havoc on his or her life.

The secret IRS policy is so damaging to American citizens whose Social Security numbers are surreptitiously used by illegal aliens – 1.2 million fraud victims last year alone – that two whistleblowers came forward to WTHR to reveal the problem.  “I love my country,” said one. “That’s why I’m here. It’s a crime. I don’t care what you call it, it’s a crime,” said one, who chose to remain anonymous for fear of retaliation.

Everyone who earns money must file a tax return, even if in the country illegally. The IRS actually issues illegal aliens an Individual Taxpayer Identification Number (ITIN) to facilitate tax filing, but one needs a Social Security number to get a job. Thus, tax returns from illegal aliens often have two numbers associated with them, the ITIN and the Social Security Number on the W-2 earnings statement. If they don’t match, that’s a pretty clear indication of identity theft.

But not only does the agency refuse to do anything about it, their policies encourage the practice. The IRS even knows where the perpetrators live and work, since they are filing forms with the information, but refuses to crack down.

WTHR found two victims of identity fraud, singled out by the IRS for under-reporting their income, since the agency received two W-2 forms with the same Social Security number. Legal taxpayers, who have no idea that their Social Security numbers are being used illegally, only report one income. One victim, Albert Allen, lost his family’s health insurance due to the snafu: “I had to go months hoping that my kids didn’t get hurt because they didn’t have the insurance,” he said.

The rub is that the IRS knew all along that Allen was the victim of the identity fraud. Yet the agency chooses to keep victims like him in the dark and protect the criminals. And, they made him file papers to prove that he had no knowledge of the situation, a matter that is still unresolved, since his Social Security number continues to be used by an illegal immigrant – and why not if there’s no penalty?

The IRS calls illegal immigrants who use another’s Social Security number a “borrower,” rather than a thief. The policy manual directive to workers is clear: “Do not disclose to the taxpayer that the Form W-2 containing their Social Security number was reported on an ITIN return.” Allen expressed shock, saying that this “would cause more people to do it.”

When asked if it would be acceptable for an American citizen taxpayer to borrow someone else’s Social Security number, one whistleblower replied: “Hell no. It’s stealing. You’re taking something without that person’s consent.” His colleague said that “every day you see this over and over and over and over again.”

Identity theft by illegal immigrants is rampant and the Obama administration is complicit. Despite constantly complaining about budget restrictions, the IRS holds up applications for tax-exempt status for organizations whose political views the administration opposes, and goes after the under-reported income of individual taxpayers – even for as little as a few dollars in back taxes.

It is unconscionable that the agency encourages illegal immigrants to continue working without authorization, refuses to punish identity thieves and allows citizen taxpayers to be victimized.

Recommended Reading:

White House Report Confirms President Obama’s Executive Actions Will Harm American Workers, Taxpayers

Amnesty: Breaking the Social Security Bank

About Author


Content written by Federation for American Immigration Reform staff.


  1. avatar

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  2. avatar

    We need to have term limits. Two terms of four years for the house and senate just like the President. Tell the reps and senators to steal all they can in eight years because then they are out. The Supreme Court judges should serve one term of eight years. Most of them are older than dirt and have dementia. Lifetime appointments should be served in a federal prison by known criminals like Bill and Hillary, Al Gore, and most of the aforementioned elected officials above from both parties.

    • avatar

      U should have left long time ago….I don’t think you grasp reality well…..still rhe same people in Congress…minor changes…the way you expressed yourself ….requires a new country for you…

  3. avatar

    Is it really policy of the Obama administration? I remember that this situation of identity theft was decided by some jurist on one of the appellate courts, maybe the 5th or 8th circuit, that identity theft isn’t a crime or more specifically a felony and could not be used for deportation purposes. I’m not a lawyer so my information may be a little off.

  4. avatar
    Clivus Multrum on

    This makes me laugh. I’ll bet that Mr. Allen is one of the millions of dumbasses who voted in Obama out of White Guilt. I have no sympathy for quivering craven quim like him. These cowards deserve everything that they are getting from “their” government since they are the idiots who continue to vote in the same scum election after election. To hell with him and the rest of the brainwashed morons they deserve whatever befalls them.

  5. avatar

    Obama and his IRS is just trying to be helpful. After all, Obama packs a Conn. SS number that his grandma dug up from a Conn. man who died in Hawaii who didn’t show up on the SS death index.
    The dictator servants do as they are told.

  6. avatar

    Why don’t you find out the truth about taxes and all of this becomes blase’…
    Just google Pete Hendrickson…..Cracking the Code…..Losthorizons…..
    IRS is a joke as is our entire government…..
    Proof is in the pudding…as they say…and that is why you will see how the dept of treasury writes people checks for all back taxes paid when they become educated about the REAL way taxes work…

  7. avatar

    It’s embarrassing but my old mom, who I always considered somewhat politically naïve, told me over and over again, that as far as the illlegal immigration I was complaining about, “The government wants this”……She is a lady who worked like an Ox, her whole life in a meatpacking plant and never had a formal education, but she educated me once again. LOL

  8. avatar

    Just one more thing that this administration has allowed to happen. There was an illegal alien that went on a crime spree in Lake County Ohio that ended with a woman being murdered in her own home. This particular alien had been apprehended twice and released according to the news report afterward. This whole thing is disgusting!

    • avatar

      Americans, are now getting the fruits of their totally disinterested in their nation, attitude, that has been with them for years and years. While they worked and slaved and raised families, their government, the Congress, Senate, has been shafting them 24/7/365 with outrageous taxes and fees. And they wondered why the never get ahead??

    • avatar

      Couple this with the press conference thisnweek in AZ with sheriff Paul Babeau, border patrol agents and their union leaders. I dont think anyone other than a few local outlets and some alt. Media. You can probably find more info online,but one thing they said agents were moved from high traffic areas to low traffic areas, allowing people to cross un-impeded. This is just one of the claims made and ignored by every major news organization in the country.

  9. avatar

    I have yet to verify if my SS is being used by someone else but I am going to do it. My question is simple, if I find that someone else is using my SS, can I get an attorney, tell him to sue the IRS for a couple of Billion $$, tell him to keep 75% for him and create a stir so big that the entire government takes notice? I am sure that there has to be a Law Group big and powerful enough to go through with this based only on facts and common sense. I am only one citizen, and I love my country, but one is all it takes to create havoc.

    • avatar
      United snakes of America on

      Do you think they care about you or me? God only knows what else they do with our SSN, They maybe using bitcoin to sell them, Damn the IRS. The only unconstitutional part of the government that can do whatever they want even if they cost me my life. SHAME ON YOU I.R.S

  10. avatar

    it is worse than you think. Someone just changed the disability part of the Social security which means those under 30 can collect disability after a 1.5 out of there first 3 years of working – not the 4 quarters or 10 years!
    Who is doing this? What are they doing. maybe Congress needs to close down the IRS and hire forensic accountants to find out who is making these decisions and keeps moving the goal post to cover the slackers and the thieves.
    How much is lost. not only to illegal child tax credits but all refundable credits, Social security scams –
    Evidently, this is a buddy system inside these organizations that do not believe in American values and honesty.
    We are becoming a third world country right inside our Washington programs and we need someone to stand up and find away to pay for auditors and track down where these changes are originating.
    Also Congress needs to write a policy that will not allow any refundable credits to anyone who is not a citizen born in the U.S., and no credit for any work that is not a legitimate I.D. number.
    How many people have to be subsided for each illegal who brings family members in.
    Time to end it or become a third world country over a relatively short time.

  11. avatar

    The illegals pay into social security, but claim income credits on their tax forms for lots of kids that don’t exist
    and get all that money back plus some, so the system is still in deficit.

      • avatar

        Are you kidding? 4.25 billion dollars were lost to the additional child tax credits for children who lived outside the U>S>, and were not legally allowed any tax status.
        Corner tax offices open up every tax season filing false tax returns and using false information. Congress and Senate are a big part of this because they keep weakening the laws as far as these credits or changing every year for the worse!
        And what about the “single” parents, one claiming Head of Household, the other Single status, who live together but claim these credits and split the children for more refundable credits.
        And what about the “head of Households” who report Schedule C – self employment income or loss to increase or reduce their income to allow much larger refundable credits. Or lives with the undocumented parent who works and doesn’t report their income. This bending of the laws is estimated to result in the 20 billions of dollars of false credit payouts. Not to mention many other refundable credits!
        As a Presidential candidate would say – “This is HUGHHHHHHHHHHHHHHH!

  12. avatar

    The first duty of any government is to protect its citizens from the depredations of foreign invaders. Any government that cannot or will not do that for it people has lost any legitimacy that it may have had.

    • avatar

      You are exactly correct. I’m 73 and have been following our government closely since my sophomore year in high school. My Dad got me started with the ‘Spotlight Newspaper’. OUR government set them up and got a reason to shut them down. However, they reopened as the AFP (American Free Press), who has a web site. Our government has always operated ‘behind the scenes’, BUT this is ridiculous!!! Obama should answer for this, immediately!!! Should we attempt to bypass our laws, we are expected to pay the price for doing so. Everyone reading this information should write a letter to the “Letter to the Editor’ section of their local paper and express their disgust and request that legal action be taken.

    • avatar

      you forgot to mention that “the invaders you refer to” are actually agreed upon and invited by The People……

  13. avatar

    This is just another example of our government breakdown on protecting it’s citizens. Too much work to go after the criminals a lot easier to target law abiding citizens for small infractions. Just like our representatives in DC they look the other way when it comes to solving issues and instead emopwer themselves. We’re are in big trouble.

    • avatar

      I think Ted Cruz has the right idea! You can’t just close IRS right away but he can certainly stir up Congress to do an audit of the IRS and possibly a lawsuit. They need forensic accountants and need to hold funds and close down IRS until they get to the bottom of this (after April 15th.)
      Tax laws and protections of citizens need to be the number one priority of the government. Not protecting the criminals and shuffling off the citizens. This government is becoming as bad as any third world country.

  14. avatar

    No change your head is in the sand or you are obumer fan the great you don’t care about the law, or getting a kickback you are. Turning america in a third world country, why , you must hate us a lot you almost sound like a terrorist

    • avatar

      Ridge runner you are the typical ignorant below average citizen that cannot handle the truth….you must be either or both,,uneducated and above 50 years old……I did state facts a per the law study our country…..youa re standing in my land, the land of my ancestors who gave birth to what you enjoy npw….and you are the kind of terrorrist whose mentality is bringing down our country: IGNORANCE.

  15. avatar

    Well if I were to find a ******* using my SS# he would never be found in the hole he was taking an extended nap.

    • avatar

      How kind of you Richard. You have a real heart.

      On another note…..all the money paid into SS by undocumented individuals is being held by SS to the tune of Billions. It’s actually helping to prop up SS.

      The undocumented are happy to give our government this money. They know they will never collect any SS when they reach SS age. This is yet another example of the money that the undocumented community puts back into our country.

      • avatar

        Are you SURE that they are paying one cent into the system? Knowing how Obama(the Commie Plant) has done things, they quite possibly have different numbers and pay nothing back. WE legal citizens have no way of knowing the truth about what is going on. The laws for our government have become much different for “We the Sheeple’! It should have never gotten this way.

      • avatar

        No, the government will try to give them credit for the bit some of them pay (many work for cash) but hopefully any type of Immigration policy will not give any credit but also deport anyone who has claimed false credits and Idenity fraud and never allow them back in the country.

      • avatar
        Not Politically Correct on

        Too bad they collect a lot more than they put in. That illegal working as a motel maid, dishwasher, landscaper comes over and has an anchor baby or two or eight. They then collect food stamps, that baby is eligible for government health care benefits and then gets a free education for twelve years.

        • avatar
          United snakes of America on

          What about American scam artists? Look at eBay and Amazon, Many people use fake info and get credit cards to buy expensive crap then resell it and start dealing with drugs and weapons. It’s everybody not illegals only

          Stop going after people that have no rights in the country of FREEDOM

          • avatar

            Those people are criminals too. This story is about the IRS knowing these people are stealing innocent people’s identities, yet doing nothing about it at all. Identity theft can destroy your life. It can take years to sort out. Spending years trying to prove yourself innocent because some ******* used your info.

            Technically , rights are granted to “citizens” of a country. However, illegal residents not only are granted certain rights, they are granted privelages and even benefits for themselves and their children. We cant take care of all of our current citizens many who have served this country and paid taxesbut we can foreigners who have done niether and broke our laws on top of that? A person can cross illegally today and immediately receive public assistance in form of food stamps(snap card) medical assistance for themselves and their children and even get a drivers license. Try getting caught in any other country and see how they treat you. People wait years to come here legally and still cant get those benefits so easily.

            Why do you think Donald Trump won the Latino vote in Nevada? It is because of his stance immigration and jobs. These two things are not independent of one another.

          • avatar

            joe that is debatable until final elections…..he got kick out of Chicago…….so what? the fact is that if he wins the nomination he will lose it to a democrat…….

      • avatar
        Actually Uses Brain on

        Cry me river Susan, and then go jump in it. You’d be whistling a different tune if it took you 5 years and thousands of dollars trying to undo the damage one of these lying scumbags has done to your credit.

  16. avatar

    If the IRS issues ITIN number to illegals… isn’t that in itself against the law? How can a gvt have a law that makes being in the U.S. illegally and then provides them a number so they may follow a law of paying taxes on an income they gained illegally? How FREAKING ABSURD is this gvt? ABOLISH THE IRS and their CRIMINALS! That would probably be the entirety of congress but whatever – get rid of them all.

    • avatar

      It is most definitely illegal and must be topped. OUR News Media system is government controlled and they intentionally keep information from ‘We the Sheeple’. IF you check, there are laws AGAINST illegals remaining in OUR country, yet they are being ‘overlooked’!!! Personal letters to local papers under the ‘Letters to the Editor’ topic, if printed … would tend to inform the public.

    • avatar

      Michina educate yourself…..the IRS will never issue an ITN illegally ……you are barking and peeing the wrong tree…STUDY our laws and see how it used to be , how it is.. and the reason we have this since you do not want immigration reform…you must e a Mexican that hates his comrades…….

  17. avatar

    this is what obumer and hts band of criminals has done to our country thats why we need a real american president not a criminal like obumer and killary clinton throw the bums out.

      • avatar

        glenn398 ,,,,rewarding?…really!!!>>they work harder than you and the day they become Americans the will be better citizens that contribute to our country more than you do and anybody in your family,,,,,

        • avatar

          Yes that is why Mexico and South American countries are countries to behold because they work so hard. Most of them start having a bunch of kids they minute they get here and live off the tax payer while their boyfriend works under the table.

          • avatar

            wrong……not all of them come here to have children… I said some or most will be better citizens than you…and there are millions of people in South American and Mexico that are smarter. wealthier and more beautiful than you are……the same goes for me…….but that is true….

    • avatar

      This went on long before Obama and “Killery.” The refundable credits came out of the Reagan Administration, the free medical in emergency rooms out of the same administration and the lax Immigration laws that allowed 3 million plus illegals to stay, without additional Border control same administration.
      The Democrats are very good about manipulating these laws when they gain control!
      I think Ted Cruz might try do what he says if he is elected when it come to immigration. He certainly can’t have taxpayers filing their taxes on a post card, (If you think Identity theft is bad now, can you imagine the entire country
      s people Identification floating around on a post card!.)
      The good news, the establishment is taking a beating this election – so big change may come for Americans – slowly but surly!

      • avatar

        Liz the refundable tax credit was forced on Reagan by the democrats because they wouldn’t pass his tax reductin program unless he included it. Reagan said these people don’t pay in any taxes and the democrats said don’t care would pass your programs unless you include the refundable credit program. So don’t lay that one on Reagan. Democrats also promised Reagan if he would legalize those here illegally at the time they would build the fence at the Mexican border. He signed the bill to legalize and then the democrats refuse to pass the bill for the money to build the fence.

  18. avatar

    Absolutely correct. Legal citizens have been denied mortgages, passports, insurance, all because illegals “borrowed” their SS number. Just further proof that our government cares more about illegals. Even when the legit owner of the number knows someone else is using it, the IRS refuses to let them know who’s doing it.

    • avatar
      Bill Richardson on

      I worked in a Social Security Office until last year… Illegals using an American’s social security number to take an American job (not working in the fields… We are talking construction, mechanics and many other decent paying jobs) is very common. And our government DOES look the other way… It’s a matter of policy. As it works now, illegals work for sometimes decades, using stolen SSNs – Then if they finally become citizens (which should not happen, since they’ve been violating our law for years), they come into the Social Security Office with proof that they were working under a stolen number(s), and the SSA policy is that the employee MUST convert the illegal work over to the now legal SSN and CANNOT report the illegal activity involved. Then this new citizen can use all of the time working illegally to start collecting Social Security Retirement, as soon as they are age eligible. The end result, Americans get screwed out of good jobs and taxpayers pay for those that can’t find work… Illegals get benefits, especially if they have anchor babies (which are no accident)… And then they collect retirement based on illegal work, out of a system that is failing over the long term. The stupidity of our government can seriously lead to depression.

      • avatar

        And we’re supposed to believe these people should be given citizenship when their life here has been one illegal act after another. Yeah, exactly what we need, a bunch of criminals.

        • avatar

          Leland an example………there is surgeon now that is famous….I don’t have his name at this moment….crossed the border in his teens now leads some type of brain research….result…..made the USA ahead of the rest of the world…….better citizen than you are… come as per you standards a criminal became a doctor and model scientist and citizen and you did not?

    • avatar
      Barbara Ortega on

      exactly.. a woman in Texas got her’s stolen and she tracked down who stole it and had the name and address of the illegal alien .. called the IRS and their response to her was
      “Better hope the person don’t retire before you do”

      they do NOT care about the citizens.. the illegals get a free pass to do as they please.. we citizens must follow the laws or go to jail

      • avatar

        If I had their address, “someone” would pay them a visit and I promise it would change right then and there.

        • avatar

          willymae that is the difference between you and the innocent people that come to work….you are the real criminal!!!

  19. avatar

    1.2 million out of 20 million illegals……then out of those 1.5 how many are really not them and how many the IRS issued……also how is that they get tax does that work if haters already int he case of the SS that has a citizen works?…….also how many of those must be dead people already…etc……also how many are given tax credit to citizens born from illegals……

    Looking at the above observation and questions there is one thing good out of all of it……taxes are still being collected….so that is the main fact out of any technicality in the eyes of the Law……….

    Based on the above the rest of the 20 million do work off the books……….wow……so 18.2 give or take are in the shadows of the IRS, employment numbers…….etc etc

    Then what is that 18.8M comprised off? low skills, doctors, lawyers, engineer, tx drivers, construction nannies, criminals, etc etc etc

    So far all of the above are facts and conclusions based on the article above. If we could quantify this we would really know what is going on instead of listening to the politicians lie about it…….what a scam!

    • avatar

      Isn;t possible some of them or the majority are US Citizens? which in case if majority then no harm…………well it is a complex issue. So far all of the above observation and questions about it……if somebody answers attacking that means that person already prejudges situations and already a threat as a voter to our future.

      • avatar

        You’re going to try and put a positive spin on people stealing SS numbers and causing problems for the legit owners?

        • avatar

          You said it I didn’t….the only positive thing here is at least the money is with Uncle Sam. Now, if we have all that information……..the money people got will also go to the Uncle Sam NOT the person with the SS#…since even though it was illegal to do that the citizen never worked to earn that money and therefore deserves none of it.

          Tell me what kind of problems and how many and what happened? please give me numbers and all details not just what you think you read it is.

          • avatar
            Bill Richardson on

            As per my post above, I worked in a SSA office until last year… MANY illegals work under illegal numbers and if they become citizens decades later, they are credited with the illegal work and then can collect SS Retirement. The first time I saw this, was when one of them came into our office and got loud, shouting about how many of his friends had the conversion of their SS credits from illegal numbers to their new legal number, processed more quickly. So of course, I asked that senior rep about it… She told me she was fed up and that his paperwork was sitting on her desk, since she was in no hurry to process it and explained the SS policy to me – That not only did she have to process it, but the illegal activity cannot be reported… We’ve got to protect the privacy of the individual who was breaking our law for years lol.

          • avatar

            I believe the SS was created of anybody that came to the US to receive what is earned………….so that nobody could take that away from its inception…….there are laws older than us……and have been this way …..if you become legal…then it is yours……nothing wrong with it…..NOW if you abuse is…that is a different story…….if the person became legal that means there was no criminal or legal issues for that person to become legal therefore it is his/her money……..people have been crossing this land since 300 years or so ago….and the way of staying has changed………of course if these guys are being wanted by the law that is a different matter….

          • avatar
            Barbara Ortega on

            No Change: IF they stole someone’s SS# and worked.. the person who’s number they stole will be contacted by the IRS about unclaimed income.. then you as a legal person holding that SS# has to prove that you didn’t hold that job…
            A woman in Texas who got her SS# stolen, reported it to the IRS. She tracked down who the person was who stole it.. the IRS remark to her was….
            “Better hope that the person don’t retire before you do”

            EXCUSE ME!!! how would you like to be ready to retire and collect your SS and find out some illegal alien is already drawing YOUR SS…

            A lot of these illegal aliens with ITIN numbers are also getting back in Refunds thousands of dollars .. much much more than they ever paid in.. one in Texas got back $26,000 by claiming 26 dependents on his return.. they lived IN MEXICO.. another one got back $40,000 the man who received the $26,000 was asked by a reporter about it .. he told the reporter that as long as our government was stupid enough to give it to him, he was going to keep on taking it…

            this is OUR tax dollars they are stealing… there is NO way they should get this much money

          • avatar

            Barbara I don’t have the details of your claims BUT nowadays you can do a monthly check of your credit and there are avenues to do this…it happened to me and I fixed it fast…….

            As to the big families I would like to see first how many of our own do that so that the reason they don’t care;…besides that is not your tax dollars…….that belongs to the government you hardly paid for anything it was The People there….I just get a kick when individuals get entitled//”My tax dollars”…….

        • avatar

          I tell you why it is BS…..if you call the IRS and you tell them who you are…with dates and place of birth…they will change your address back. It happened to me and I got the money the guy worked for a year.

          We all get our yearly IRS letter….so where is the problem if the citizen is stupid enough not to care…..

          • avatar

            Another fairy tale. If the government knew you didn’t earn the money they wouldn’t give you a dime.

          • avatar

            Leland what is the fairy tail…the fact you are dumb and are not able to hold a normal average feedback conversation or you below average reality comprehension?

      • avatar
        Barbara Ortega on

        does it matter if they are citizens or illegally here… THEY STOLE THE NUMBERS.. THAT IS ID THEFT..!!!
        Do NOT try and justify it… whoever they are.. if they stole that SS#, they are criminals.. PERIOD

        • avatar
          United snakes of America on

          If our nation cares why don’t they change our SSN’s into something more complicated? You know why? Cause who’s protecting us are the masters añd nobody cares.

          • avatar
            United snakes of America on

            If our nation cares why don’t they change our SSN’s into something more complicated? You know why? Cause who’s protecting us are the masters añd nobody cares. It’s all about money