First, this matter involves the largest money collection organization I believe on earth. The Internal Revenue Service (IRS) aside from being a fraudulently mismanaged institution has entered the world of politics and practicing maneuvers that are unconscionably against the law. Two specific issues have been brought before congressional committees however, just as with the 8-minute video tape that Susan Rice openly misrepresented to the people of the U.S., so to the IRS the institution that holds taxpayer funds and further dispersed to congress based on budgetary concerns, has two readily identifiable legalese concerns that have all but been politically quashed or outright covered-up.
In this matter of the IRS has really mismanaged billions of dollars. The Federation for American Immigration Reform (FAIR), a conservative group opposed to amnesty, once estimated that the 2010 annual cost of illegal immigration at the federal, state and local level was about $113 billion – nearly $29 billion at the federal level and $84 billion at the state and local level. The study noted that tax receipts from illegal immigrants “do not come close to the level of expenditures” by federal and state government on behalf of undocumented workers.
The question of whether to legalize illegal aliens and put them on a pathway to citizenship may be the most controversial legislative issue facing the U.S. Congress this year.
But, according to the Treasury Inspector General for Tax Administration (TIGTA), seventeen years have already passed since the Internal Revenue Service made its own “policy decision” to “’legalize’ illegal aliens.”
That policy, made those many years ago, not only determined that the IRS would treat illegal aliens the same as legal immigrants and U.S. citizens, but also that the IRS would not hand over to federal immigration authorities information about employers who appeared to be hiring large numbers of illegal aliens and about illegal aliens who filed false documents with the IRS.
As a result of the IRS’s policy, by 2010, according to TIGTA, the service was paying out $4.2 billion in refundable “Additional Child Tax Credits” to illegal aliens. In 2011, according to TIGTA, the IRS would pay more than $46 million in tax refunds to what theoretically were 23,994 illegal aliens who all used the same address in Atlanta.
This regulation said the IRS would grant what it called Individual Taxpayer Identification Numbers (ITINs) to aliens who did not qualify to work in the United States and did not qualify for Social Security Numbers. The IRS had three basic requirements for people receiving these numbers: 1) they had to be an alien, 2) they could not be qualified to work in the United States or have a Social Security Number, and 3) they owed taxes in the United States.
In issuing this regulation, the IRS said Section 6103 of the Internal Revenue Code would apply to the aliens it granted these ITINs. Section 6103 says the IRS must keep tax information confidential and, with a few exceptions, may not share that information with other government agencies.
In September 1999, the Treasury Inspector General for Tax Administration, which has oversight over the IRS, published an audit report on the ITIN regulation. It was titled, “The Internal Revenue Service’s Individual Taxpayer Identification Number Program Was Not Implemented in Accordance with Internal Revenue Code Regulations.”
The IG pointed out that the IRS’s claim that it could issue ITINs to illegal aliens and then decline to provide information about those illegal aliens to the federal immigration enforcement agency—then called the Immigration and Naturalization Service (INS)—contradicted the terms of the 1996 immigration reform law.
“The IRS provides disclosure protection to illegal alien applicants,” said the IG. “The Congress has clearly stated how the federal government is to communicate between agencies concerning illegal aliens. The Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (the Illegal Immigration Reform Act) states that information concerning illegal alien status should be provided to the Immigration and Naturalization Service (INS) notwithstanding any other law.
“However, in the ITIN regulations issued on May 29, 1996, the IRS states, ‘Generally, tax return and tax return information are confidential, as required by 26 USC 6103,’” said the IG. “Therefore, the IRS assurance of anonymity seems to be in conflict with a federal statute.”
In sum, the IG concluded, despite the 1996 immigration reform law, the IRS had made its own policy decision to simply “legalize” illegal aliens.
“The Social Security Act provides that whoever, with the intent to deceive, falsely represents a number to be his or her SSN when, in fact, that number was not assigned to that person, shall be guilty of a felony and subject to a fine,” said the report.
“Unauthorized residents submitted to the IRS an estimated 309,000 people filed tax returns with an estimated 354,000 SSNs on Forms W-2,” said the report. “These Forms W-2 included 265,000 SSN that are assigned by the SSA to other individuals.”
The report also said they included 89,000 Social Security Numbers that the SSA had never assigned to anyone.
On July 7, 2011, TIGTA published yet another audit report revealing that President Obama’s economic stimulus law had made the ACTC more generous and that the IRS had paid out $4.2 billion to illegal aliens through this refundable credit in 2010. The title of this audit report: “Individuals Who Are Not Authorized to Work in the United States Were Paid $4.2 Billion in Refundable Credits.”
In July 2012, TIGTA published a report on an audit it had initiated because two IRS employees had alleged “that IRS management was requiring employees to assign Individual Taxpayer Identification Numbers (ITIN) even when the applications were fraudulent.”
[In this report, TIGTA revealed that in 2011 the IRS had sent $46,378,040 in tax refunds to what theoretically were 23,994 unauthorized aliens using ITINs and all sharing a single Atlanta, Ga., mailing address. Similarly, the IRS sent $10,395,874 in refunds to what theoretically were 2,507 unauthorized aliens using ITINs and all sharing a single address in Oxnard, California.]
The same IG report said the IRS also sent $7,319,518 in refunds to 2,706 theoretical unauthorized aliens who all shared the same bank account. More next time!