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Friday, May 4, 2012

Tax Loophole Pays Out Billions in Tax Credits to Illegal Aliens *vid*

Indiana NBC affiliate WTHR’s Bob Segall does an exposè that shows illegal immigrants have found a loophole in filing taxes, and the IRS knows about it. 

Even without a Social Security Number, illegal immigrants are able to file tax returns and some are claiming children that live in Mexico, getting refunds bigger than $10,000.

Ultimately this is costing American taxpayers $4.2 billion a year.

The loophole, called the Additional Child Tax Credit, offers fully-refundable tax credits of up to $1000 per child. But millions of illegal immigrants are now filing the credit for up to 12 dependents, often identified as nieces and nephews, according to a whistleblower tax consultant in central Indiana. "There is not a doubt in my mind there is huge fraud taking place here," the whistleblower, who asked not to be identified for fear of reprisal, told WTHR.

"I can bring out stacks and stacks. It's just so easy it's ridiculous." "The magnitude of the problem has grown exponentially," said Russell George, the United States Department of Treasury's Inspector General for Tax Administration (TIGTA). "We have made recommendations to [IRS] as to how they could address this, and they have not taken sufficient action in our view to solve the problem."