Skip to comments.The Federal ID that Pays Illegal Aliens Billions a Year
Posted on 11/28/2011 7:06:21 AM PST by safetysign
Established 15 years ago, the Individual Taxpayer Identification Number [ITIN] is a seemingly innocuous administrative requirement that the Internal Revenue Service assigns to anyone who is employed and pays taxes. According to the IRS website, the numbers are used for federal tax reporting only. But since ITINs, as they are commonly known, are issued to wage earners regardless of immigration status, theyve frequently been abused by the aliens who hold them.
Although the real estate crisis is fading from our memory, its important to recall that the ITIN was the vehicle used in lieu of Social Security numbers, which then legitimized the disastrous lending policy of providing home mortgages to unqualified illegal aliens. With bankers as their willing abettors, and while the Federal Deposit Insurance Corporation purposely looked the other way, aliens took out home loans using ITINs as their major form of identification. Bankers, only too-eager to accommodate poverty-level applicants with balloon financing for homes they could barely make the first payment on, raked in big money. To the bankers, aliens represented the new market. Today, five years later, the nation is still reeling from the avalanche of foreclosures that followed.
For aliens, the ITIN is an extremely useful vehicle. Since the IRS isnt required to share its information with any other federal agency, including immigration authorities, the promise of intra-agency confidentiality allows aliens to file tax returns without fear of deportation. At the same time, holding an ITIN enables aliens to authenticate their presence in the United States and prove that they have paid taxes. This information could be crucial if Congress ever enacted an amnesty.
The ITINs improper use is once again in the news. The Federation for American Immigration Reform, in its recent analysis entitled Treasury Department Says Illegal Aliens Collection Billions in Tax Credits, revealed that according to the Department of Treasurys Inspector General, more than $4.2 billion in additional child credits were paid out in 2010 to illegal immigrants. In 2005, the pay outs totaled $924 million. This program allows low income earners to claim a $1,000 per child credit. If the household ends up with no additional tax obligationas most alien families do notthen $1,000 is paid to them.
Pursuant to the IG report, 72 percent of tax returns filed by ITIN users claimed this credit compared to just 14 percent of returns filed with social security numbers. The generous payment of these benefits represents yet another incentive for aliens to enter, reside and work in the United States without permission. Providing incentives to aliens, financial or otherwise, is against the law.
The ITIN is a sham that should be eliminated. The federal government knows that many ITIN users are illegally in the United States. Automatic acceptance of the ITIN without additional identification is tantamount to endorsing illegal immigration.
At a time when Congress and the president are struggling to find ways to cut trillions of dollars from federal spending, and while more than 14 million Americans are unemployed, its unconscionable for the IRS to ignore abuse of its ITIN program that results in billions of dollars in payments made to illegal aliens.
That includes the one which writes the Tax Code. So all they have to do is revise the EITC instructions to read that anyone using a ITIN for filing their income taxes is not eligible for the EITC.
Make it explicitly clear that this pertains to anyone and everyone. If your name is Chang, Wang, Gomez, Courvoisier (pardon my French), Murphy, Wardinski, Solinsky, Tojo, Von Steuben, or Obangabunga -- if you use a ITIN instead of an SSN you do not meet the qualifications for a EITC.
And let Barry try to veto it. He can't claim 'racism' as it pertains to everyone. So in vetoing it he'd be openly abetting Tax Fraud via a loophole. Even the Senate Rats would have a hard time sticking with him during these times.
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That's one point of the article...the ITIN is a legal substitute for the SSAN. Louis Freeh of the FBI tried to get Congress not to allow this to happen, They didn't listen to him.
Why aren’t you in Congress?
"If a primary taxpayer, spouse, or both have ITINs, they are ineligible to receive the Earned Income Tax Credit (EITC), even if their dependents have valid SSNs.
It's just the Child Tax Credit......
Question: Can I claim the child tax credit for a child who has an ITIN, rather than a social security number?
Answer: Yes, you can claim the child tax credit for a child with an ITIN (individual tax identification number) if you otherwise qualify.
I'm no Cain cheerleader, but he has never indicated he is for amnesty. And even if someone wants to twist his simple words to indicate he does support it, his tax plan would end this kind of abuse.
I noticed it just in time to call off my posse who were about to burn a cross on your lawn (if we could get our pick-up started.)
BTW, I believe you should use the English variant of that parish's name:
The Roman Catholic Clergy of America is apparently all for illegal Mexican immigrants as long as they can continue to tell Polish jokes.
Iglesia ... Church
that’s spanglish? either something is called an iglesia in spanish or a church in english. never seen both used in a name in the same written passage.
Our Lady of the Workers...
Actually "Our Lady of Menial Trades" is a very very old stand-up line used by George Carlin. Richard Conte was reportedly the principal of the school. Or was it Aldo Ray?
Ph ... Because of my High School 'permanent record'
(I didn't like kill anyone. But I didn't back down from anyone either. And yes I graduate on time and near the top of my Class, B+ Avg. But I was a bit 'naughty')
But in any case the House can change the Tax Code and stop the 'loophole fraud'. They do write the Law.
Seems like it would be. Wouldn't any tax "credit" require some amount of "earned income"?
It's this kind of silliness that creates such a distrust in the English language.