Rubenstein described the EITC scams as common, well-organized, and massive. According to the General Accounting Office, one-quarter to one-third of all EITC claims are improperly paid. That amounts to at least 6 million households receiving at least $12 billion fraudulently (2007 numbers).
Rubenstein blames this gaming of the system, not so much on the illegal immigrants, but on their enablers: the IRS (which does not verify Social Security numbers or eligibility criteria and which publishes Spanish-language materials about the EITC); tax preparation and filing services, such as H & R Block; and advocacy groups, such as the left-wing Center on Budget and Policy Priorities. The latter, for example, offers outreach programs designed to hook immigrants into the EITC entitlement culture.
If IRS kept the auditors and dispensed with the audits of the EITC filings, these additional resources could be thrown against the high dollar value earners and income tax proceeds would skyrocket.
Audits of EITC waste $100 for every $1 earned.