The IRS Commissioner, John Koskinen, admitted that there’s a problem with taxes and illegal immigrants. He suggested that illegal immigrants should “illegally” use Social Security numbers. He made this surprising statement in reply to the question of Senator Dan Coats, R-Ind., during the Senate Finance Committee meeting. Did the IRS collaborate with taxpayers who pay taxes using fraudulent information? Well, it wasn’t exactly like that.
According to Senator Coats, “What we learned is that… the IRS continues to process tax returns with false W-2 information and issue refunds as if they were routine tax returns, and say that’s not really our job. We also learned the IRS ignores notifications from Social Security Administration that a name does not match a Social Security number, and you use your own system to determine whether a number is valid.”
Why does IRS tolerate this?
Commissioner Koskinen suggested that as long as information is being utilized to obtain jobs, the IRS was fine with it. As a matter of fact, according to him, the IRS actually helps illegal immigrants to crook their rules. Maybe this might be the problem of the IRS, but it’s very odd how an agency chief encourages illegal immigrants to steal SSNs.
The IRS chief tried to differentiate between bad uses and misuses of another person’s personal information. According to Mr. Trump, illegal immigrants get about $4.2 billion in tax credits. The 2011 audit by the Treasury Inspector General for Tax Administration shows that those who are unauthorized to work in the US were being paid $4.2 billion tax credits refundable.
Although illegal immigrants cannot really get Social Security Numbers, the IRS doesn’t seem to care. Besides, taxes can be filed using an Individual Taxpayer Identification Number (ITIN). While they couldn’t get the Earned Income Tax Credit, they can meanwhile receive the additional child tax credit. If the President’s plan on legitimizing illegal immigrants will succeed, they could be given the Earned Income Tax Credit that is said to be responsible for the billions in fraudulent refunds.
How the Earned Income Tax Credit work?
First and foremost, you need to have a Social Security Number before you can claim your Earned Income Tax Credit for the last 3 years. And then you have to wait ‘til the IRS sends you your three years of tax refunds. This actually works even if you have never filed and paid your taxes at all, or if you ever filed a tax return, and work illegally. According to the IRS, this is how Earned Income Tax Credit works.
The IRS Commissioner Koskinen explained this to Senator Charles Grassley (R-Iowa) in 2015. Illegal immigrants who were covered by the amnesty deal given by the President can actually claim tax credits that they’ve earned for work they did illegally, even though they haven’t filed tax returns during those years.
It can be noted that last year, IRS Commissioner Koskinen said that illegal immigrants may claim a refund if they have previously filed tax returns. However, the chief corrected himself saying that they can claim the refunds without filing tax returns. Per the IRS, illegal immigrants who were given amnesty and Social Security numbers may claim up to 3 years of tax credits.