Illegal Immigrants Granted ‘Extra’ Tax Refunds By IRS

Illegal immigrants will now be receiving “extra tax refunds” from the IRS. On Tuesday IRS Commissioner John Koskinen confirmed that President Barack Obama’s new immigration policies, which have been dubbed amnesty by opponents, allow illegal aliens to garner tax refunds for money they earned while working illegally in the United States. In 2010, the government paid out $4.2 billion to illegal immigrants who claimed the child tax credit, the IRS’s inspector general found.

IRS tax refunds for illegal immigrants who were granted “amnesty” under executive orders by President Obama, will be given Social Security numbers. Once a number has been issued, the illegal immigrant can go back up to three years and amend tax forms in order to claim the Earned Income Tax Credit. Allowing illegals to claim the tax credit designed to aid low income families, the IRS (i.e. American taxpayers) could be on the hook for billions of dollars in refunds, according to a Washington Times report.

Commissioner Koskinen said that illegal immigrants will have to have already filed IRS forms for the back years in order to get the enhanced tax refund. The IRS commissioner added that there is a statute of limitations on how far back the federal agency can go when it comes to amending or filing returns, the “agency’s current interpretation” such laws would permit them to retroactively permit the Earned Income Tax Credit (EITC) refund immediately.

“This is the problem you get into, is the IRS’s interpretation of the EITC eligibility requirements undermines congressional policy for not rewarding those working illegally in the United States,” Senator Charles Grassley, an Iowa Republican who is demanding a solution to the tax loophole, said.

The tax loophole Senator Grassley is referring to pertains to the way the IRS handles illegal immigrants working in the United States overall. According to Grassley, the IRS wants to be paid taxes on the wages of those who work regardless of their legal status. To accomplish this tax the IRS reportedly issued millions of Individual Taxpayer Identification Numbers, ITINs, to illegal immigrants. If the illegal alien earned enough money to pay taxes he or she would be legally liable to do so, but if the worker did not reach such a fiscal threshold, a tax refund would be issued.

What do you think about the IRS tax loophole which allows refunds to be issued to illegal immigrants?

[Image via: Chameleons Eye/]