Talk about a tax loophole!

Posted on Saturday, September 3, 2011 by Post Scripts

Undocumented workers collected $4.2 billion in a certain tax credit last year, up from less than $1 billion five years ago, according to a new audit.

The report from the Treasury Inspector General for Tax Administration looked only at a tax benefit known as the Additional Child Tax Credit, a refundable credit meant for working families. The audit found that as a result of vague U.S. law — as well as an expansion of the tax credit in stimulus legislation and other measures — the number of illegal workers collecting the money has skyrocketed.

Read more: http://www.foxnews.com/politics/2011/09/02/undocumented-workers-pocketed-42-billion-in-tax-credits-audit-shows/#ixzz1Wwk6XFLm

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5 Responses to Talk about a tax loophole!

  1. Libby says:
    Saturday, September 3, 2011 at 9:09 pm

    An illegal worker filed a tax return? with what? his phoney SS number?

  2. Tina says:
    Saturday, September 3, 2011 at 10:55 pm

    Follow the link for the answer Libby:

    The report from the Treasury Inspector General for Tax Administration looked only at a tax benefit known as the Additional Child Tax Credit, a refundable credit meant for working families. The audit found that as a result of vague U.S. law — as well as an expansion of the tax credit in stimulus legislation and other measures — the number of illegal workers collecting the money has skyrocketed.

    “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,” the report said.

    The report highlighted a quirk in U.S. law. Even people who are not authorized to work are supposed to pay the IRS taxes on their income. Many of those people cannot obtain a Social Security number, so to facilitate this the IRS hands out what are known as Individual Taxpayer Identification Numbers — so illegal workers can file returns. However, in doing so many of those workers are claiming tax benefits like the Additional Child Tax Credit. For some, it’s a way of making even more money.

    “Refundable credits can result in refunds even if no income tax is withheld or paid,” the report noted.

    Sounds like law in the stimulus was written to redistribute wealth to (illegal) undocumented workers through the treasury…and to encourage them to come on over!

  3. Toby says:
    Sunday, September 4, 2011 at 9:02 am

    Libby, you mean like Obama’s illegal DUI uncle?

  4. Libby says:
    Sunday, September 4, 2011 at 6:38 pm

    Well, I had to go find back up, because I don’t believe anything Rupert tells me.

    What has to happen is, I have to be made dictator. And then (after I have recruited my Imperial Guard, so’s I won’t get assassinated right off) … I will burn the federal tax code.

    What utter nonsense?!?

  5. Post Scripts says:
    Sunday, September 4, 2011 at 6:45 pm

    Libs, need a match?

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