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The Federal ID that Pays Illegal Aliens Billions a Year
Western Journalism ^ | 11/26/2011 | Joe Guzzardi

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, they’ve frequently been abused by the aliens who hold them.

Although the real estate crisis is fading from our memory, it’s 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 isn’t 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 ITIN’s 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 Treasury’s 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 obligation—as most alien families do not—then $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, it’s unconscionable for the IRS to ignore abuse of its ITIN program that results in billions of dollars in payments made to illegal aliens.


TOPICS: Crime/Corruption; Culture/Society; Front Page News; Government; News/Current Events
KEYWORDS: aliens; border; corruption; criminalaliens; federalid; fraud; heartless; illegals; immigration; irs; itin; magnet; perry; taxes; taxfraud; waste
Your tax dollars at work.
1 posted on 11/28/2011 7:06:31 AM PST by safetysign
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To: safetysign
How DARE you post drivel like this on Free Republic! How insensitive, anti-diversity and racist!

Don't you realize that some of these people have been in the USA for over 25 years or more, are members of their community, may be attending faithfully Iglesia Nuestra Madre de Sanctuario por Los Trabajadores Church, have family here from which they cannot be separated, even if their status of immigration is non-existent, ie illegal?

To post such an article with facts showing how this unfairly impacts us, is a little bit "heartless" and anti-family of you, now, isn't it!!???

/sarcasm

2 posted on 11/28/2011 7:15:27 AM PST by AmericanInTokyo (Free Republic is HERMAN CAIN COUNTRY....or will be in a short period of time. Just be patient.)
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To: safetysign; ding_dong_daddy_from_dumas; stephenjohnbanker; DoughtyOne; calcowgirl; Gilbo_3; ...
RE :"For aliens, the ITIN is an extremely useful vehicle. Since the IRS isn’t 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 ITIN’s 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 Treasury’s 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 obligation—as most alien families do not—then $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. "

This is how it's done.

3 posted on 11/28/2011 7:25:49 AM PST by sickoflibs (Cain :"My parents didn't raise me to beg the government for other peoples money")
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To: safetysign

The root problem is the Government has broken its own rule - your SSN (or ITIN, or EIN) was never supposed to be used for identification purposes. See your Social Security card - it’s not for ID purposes at all. Yet it has become de-facto ID for who you are.

Eliminate the ability to use an SSN (or ITIN or EIN) for identification purposes - leave it only for SSN/tax purposes - and this whole issue goes away. No need to try to decode which 9 digit number is valid or not, none of them can be used to show/track who you are.


4 posted on 11/28/2011 7:32:08 AM PST by FromTheSidelines ("everything that deceives, also enchants" - Plato)
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To: safetysign

Subprime mortgages that went into foreclosure were mostly issued to illegal aliens or exploiting landlords housing illegal aliens. http://www.humanevents.com/article.php?id=33821

The ITIN was the vehicle used by the likes of Countryside, Wachovia, and Bank of America to issue these loans to illegals, knowing they would be selling off these mortgages to others or using them as collateral for the intrinsically corrupt derivatives game.

Let’s face it - illegal aliens are the chosen people for all democrats and establishment Republicans. The effect on the rest of us is of little concern to them as long as they get cheap labor and democrat votes.

Just look at the lineup of Republican candidates - save for Bachman and Santorum, and this week Romney, they are all for amnesty for illegals in some form.

Elections are about choices - about selecting differences. Americans by majorities of 65-85% want illegal immigration stopped and no amnesty of any kind. The Republicans have a winning issue that the majority of voters would support them on, and they are squandering it to get the approvals of the Wall Street Journal, the Chamber of Commerce, Grover Norquist, Karl Rove, and the MSM.

The Tea Party started not as some rant by a CNN stock gadfly, but in 2006-2007 when Bush/McCain/Rove/et ilk tried to jam amnesty down our throats and we melted the switchboards and servers on Capitol Hill.

Now they are again telling us to go to hell. Actually, we will go to our homes, and stay there, when they come looking for us on election day.


5 posted on 11/28/2011 7:40:27 AM PST by oldbill
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To: sickoflibs
72 percent of tax returns filed by ITIN users claimed this credit compared to just 14 percent of returns filed with social security numbers.

why not ??? its not like they have alot to fear in being caught...claim 10-12 kids each, so what, its free money, and if they get caught, whats gonna happen ??? deportation ??? to an open border to start it all again...

now i, OTOH, play even a little bit fast and loose with tax 'law' or falsely claim credits then Im lookin at financial ruin at best, or serious jail time...

i wonder if bambam would hook me up with the guy that supplied all his SS#s ???

6 posted on 11/28/2011 7:43:04 AM PST by Gilbo_3 (Gov is not reason; not eloquent; its force.Like fire,a dangerous servant & master. George Washington)
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To: Gilbo_3

Worse yet this is the stuff excluded from the trigger cuts.


7 posted on 11/28/2011 8:05:53 AM PST by sickoflibs (Cain :"My parents didn't raise me to beg the government for other peoples money")
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To: safetysign; AuntB; Tennessee Nana; South40; napscoordinator; TADSLOS; raybbr; JDW11235; ...

And you can bet the cunning “impoverished” illegals are riding the US gravy train under multiple identities.

Despite vote-crazed, illegal worshipper Ricky Perry’s demeaning Americans who disagree with giveaways——these lawbreakers are cunning connivers——sucking the US taxpayer dry.

The Washington state rapist, Jose Madrigal, had some 30 identities. At least one illegal collected over $3 million UI benefits using faked identities.

It is Big Business forging and mfg fake identities, and selling them TO “IMPOVERISHED-LOW WAGE” ALIENS for several thousand dollars each.


8 posted on 11/28/2011 8:05:56 AM PST by Liz
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To: safetysign

Another example of government complicity in destroying America. Between this and allowing publication of dead people’s SSNs on the internet, no wonder we have an immigration policy.

Just once, I would love to hear somebody to respond to the open borders and amnesty emotion with this: “Why is America the ONLY COUNTRY in the world that is not allowed to enforce its borders?”


9 posted on 11/28/2011 8:10:27 AM PST by NTHockey (Rules of engagement #1: Take no prisoners)
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To: Liz

Amnesty is a government growth hormone.


10 posted on 11/28/2011 8:10:29 AM PST by cripplecreek (Stand with courage or shut up and do as you're told.)
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To: safetysign

“the problem” is a lawless and out of control central government...


11 posted on 11/28/2011 8:11:54 AM PST by mo
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To: NTHockey
Why is America the ONLY COUNTRY in the world that is not allowed to enforce its borders?

Coincidentally, almost all majority-white (not for long) countries are forced to keep open borders while most non-white countries are allowed to have border control. It would be racist for majority-white countries to practice border control.

12 posted on 11/28/2011 8:21:16 AM PST by mas cerveza por favor
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To: mas cerveza por favor

Funny thing is that whites are a global minority.


13 posted on 11/28/2011 8:22:55 AM PST by cripplecreek (Stand with courage or shut up and do as you're told.)
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To: oldbill
Now they are again telling us to go to hell. Actually, we will go to our homes, and stay there, when they come looking for us on election day.

That is not punishing anybody. The financiers of RINO-Dems would just as soon rule through D-puppets as through R-puppets.

14 posted on 11/28/2011 8:30:11 AM PST by mas cerveza por favor
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To: cripplecreek

LOL——good one.


15 posted on 11/28/2011 9:02:16 AM PST by Liz
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To: sickoflibs; AuntB; Tennessee Nana; Condor51; TADSLOS; safetysign; ding_dong_daddy_from_dumas; ...
......a recent analysis entitled, “Treasury Department Says Illegal Aliens Collection Billions in Tax Credits,” revealed that according to the Department of Treasury’s 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.

ANOTHER SCAM IRS payments/EITC claims---can run up to over $3000 per claim. $20 billion is estimated to have been paid out to these cunning "impoverished" illegals. Most of them are collecting over and over again-----using multiple identities-----falsifying apps---claiming children they do not have and/or falsely stating kids are back in their homelands.

Imagine the giveways vote-crazed, illegal worshipper Senor Perry is planning.

16 posted on 11/28/2011 9:21:36 AM PST by Liz
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To: cripplecreek
Amnesty is a government growth hormone.

ROFL

This is why securing our borders, enforcing immigration law, and no amnesty under any name or guise is essential to cleaning up the morass in DC
17 posted on 11/28/2011 9:55:20 AM PST by algernonpj (He who pays the piper . . .)
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To: safetysign

Wait a minute.....

Doesn’t each child have to have a SS# for that credit?


18 posted on 11/28/2011 10:05:44 AM PST by moehoward
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To: safetysign; Berlin_Freeper; Hotlanta Mike; Silentgypsy; repubmom; HANG THE EXPENSE; Nepeta; ...
Image and video hosting by TinyPic

. . . . Check out article.

19 posted on 11/28/2011 10:17:42 AM PST by LucyT
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To: safetysign

Our un-elected Federal Reserve, our elected Judicial, Executive and Legislative Branches spend trillions on themselves and their friends to gain and keep power. ITIN numbers are a problem, but Government is above the law it writes.


20 posted on 11/28/2011 10:21:30 AM PST by wac3rd (Somewhere in Hell, Ted Kennedy snickers....)
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To: Liz
There's a very simple solution to this ITIN give away to illegals via the EITC -- just change the qualifications. The Republicans control the House, last time I checked anyway, so they control all the Committees.

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.

Problem solved.

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.

21 posted on 11/28/2011 11:39:08 AM PST by Condor51 (Yo Hoffa, so you want to 'take out conservatives'. Well okay Jr - I'm your Huckleberry)
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To: safetysign; 1_Inch_Group; 2sheep; 2Trievers; 3AngelaD; 3pools; 3rdcanyon; 4Freedom; 4ourprogeny; ...
Ping!

Click the keyword Aliens to see more illegal alien, border security, and other related threads.

22 posted on 11/28/2011 12:36:39 PM PST by HiJinx (I can see Mexico from my back porch...)
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To: moehoward; safetysign
Doesn’t each child have to have a SS# for that credit?

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.

23 posted on 11/28/2011 12:39:46 PM PST by HiJinx (I can see Mexico from my back porch...)
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To: Condor51

Why aren’t you in Congress?


24 posted on 11/28/2011 12:43:39 PM PST by Liz
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To: Condor51
"There's a very simple solution to this ITIN give away to illegals via the EITC"

From irs.gov
"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.

25 posted on 11/28/2011 1:47:06 PM PST by moehoward
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To: sickoflibs
I am sure you as well as many others at this site and like minded individuals have spoken about various aspects of this scam for a number of years. I can go back into the mid eighties and remember how my neighbor, a Muslim from Lebanon literally bragged about how he would get his family members including his father who was not exactly poor, a electrical engineer who ran a electric installation business in Lebanon, green cards, social security cards, how the father to name one ended up getting total free health care services and eye surgery etc.. all paid for by the US tax payers. Then he would at another time laugh at me indirectly saying how stupid Americans where.
The system(s) all need large overhauls. As the article and your post amplify on, the problem extends well beyond this particular issue. The waste and abuse has been such for so long it is pathetic.
26 posted on 11/28/2011 1:48:20 PM PST by Marine_Uncle (Honor must be earned.)
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To: HiJinx

Amazing.


27 posted on 11/28/2011 1:49:45 PM PST by moehoward
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To: oldbill
"Just look at the lineup of Republican candidates - save for Bachman and Santorum,"

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.

28 posted on 11/28/2011 1:56:19 PM PST by moehoward
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To: AmericanInTokyo
Thank you, thank you for the "sarcasm" tag!

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:

Our Lady of the Menial Trades

The Roman Catholic Clergy of America is apparently all for illegal Mexican immigrants as long as they can continue to tell Polish jokes.

29 posted on 11/28/2011 3:03:19 PM PST by Kenny Bunk (So, you're telling me Scalia, Alito, Thomas, and Roberts can't figure this eligibility stuff out?)
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To: safetysign
and America takes another one in the........


30 posted on 11/28/2011 3:15:07 PM PST by Chode (American Hedonist - *DTOM* -ww- NO Pity for the LAZY)
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To: AmericanInTokyo

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.


31 posted on 11/28/2011 3:15:51 PM PST by HiTech RedNeck (bloodwashed not whitewashed)
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To: Kenny Bunk

Our Lady of the Workers...


32 posted on 11/28/2011 3:16:59 PM PST by HiTech RedNeck (bloodwashed not whitewashed)
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To: HiTech RedNeck
Absolutamente gracias intensivísimas por las redacción, traducción, y sobretodo la confundación de mi español. En el provenir, nunca me olvidaré incluir para tí la etiqueta "sarcasmo."

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?

33 posted on 11/28/2011 3:30:15 PM PST by Kenny Bunk (So, you're telling me Scalia, Alito, Thomas, and Roberts can't figure this eligibility stuff out?)
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To: safetysign

Bump


34 posted on 11/28/2011 4:22:23 PM PST by Tribune7 (Perry, Newt, Cain or Santorum)
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To: HiJinx

bttt


35 posted on 11/28/2011 8:12:40 PM PST by Dante3
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To: Liz
*** Why aren’t you in Congress? ***

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')

36 posted on 11/29/2011 4:15:26 AM PST by Condor51 (Yo Hoffa, so you want to 'take out conservatives'. Well okay Jr - I'm your Huckleberry)
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To: moehoward
Well, that is what I meant. iirc the Child Tax Credit is part of the EITC. Or they're figured together or dependent on each other? I don't get either so I don't go through that paperwork, or computer screens.

But in any case the House can change the Tax Code and stop the 'loophole fraud'. They do write the Law.

37 posted on 11/29/2011 4:21:16 AM PST by Condor51 (Yo Hoffa, so you want to 'take out conservatives'. Well okay Jr - I'm your Huckleberry)
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To: Condor51
" iirc the Child Tax Credit is part of the EITC."

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.

38 posted on 11/29/2011 9:10:34 AM PST by moehoward
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