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Latino Daily News

Wednesday September 7, 2011

Undocumented Immigrants Receive $4.2 Billion in Tax Credits

Undocumented Immigrants Receive $4.2 Billion in Tax Credits

Photo: Undocumented Immigrants Receive $4.2 Billion in Tax Credits

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An audit of the Internal Revenue Service (IRS) has revealed that undocumented immigrants were able to collect $4.2 billion in refundable tax credits from 2010, due to possession of taxpayer identification numbers.

Undocumented immigrants are not eligible for federal benefits, but they were able to reduce the amount of money owed in taxes by way of a tax break called the additional child tax credit.

Though some just have the amount owed reduced, others actually receive a refund.

Many are angry that undocumented immigrants are able to make receive money from the federal government, though they do pay income taxes.

The audit revealed that 72 percent of those using the taxpayer identification numbers (TIN) claimed the child tax credit, and claims that the government look into checking the immigration status of those filing with TINs.

The IRS is now speaking with the U.S. Department of the Treasury to discuss ways of denying the federal tax credits to the undocumented.

However, the IRS says it has no legal authority to require filers to reveal their status.