Foreigners allowed improper tax credits by IRS
The IRS allowed foreign workers _ many of them in the U.S. illegally _ to improperly claim nearly $7 billion in child tax credits from 2004 to 2007, a government investigator said Thursday.
"As it now stands, the payment of federal funds through this tax benefit appears to provide an additional incentive for aliens to enter, reside and work in the U.S. without authorization, which contradicts federal law and policy to remove such incentives," the report said.
The child tax credit allows millions of families to cut their federal income taxes by up to $1,000 per child. It is also available to families that don't make enough money to pay any federal income taxes. Those families receive payments after they file their tax returns.
These illegal aliens have a negative federal income tax liability. It amounts to a welfare payment written into the tax code. Keep in mind that these are the illegal aliens who bother to file a tax return. The other ones simply use your SSN or mine and then let us deal with the ID theft implications.