IRS remains in Obama's back pocket.

• Author: Emord, Jonathan W.
• Position: Life in America

REPORTER Bob Segall of NBC affiliate WTHR in Indianapolis, Ind., aired an investigative report on April 26,2012, explaining that hundreds of thousands of illegal immigrants fraudulently were obtaining the additional child tax credit, listing as relatives people who actually lived outside the U.S., south of the border. Some $4,200,000,000 per year in U.S. tax dollars are going to illegals as refunds under this credit. Claimants can receive up to $ 1,000 per child listed.

In Segall's report, a tax preparer, whose identity was masked, explained, "We've seen sometimes 10 or 12 dependents, most times nieces and nephews, on these tax forms. The more you put on there, the more you get back."

Almost two years after Segall's report, illegals still are obtaining the credit fraudulently. A bill passed the House to stop the fraud, but Senate Majority Leader Hany Reid (D.-Nev.) refused to let it come to a vote in the Senate, as all but a few Democrats stood with him opposing the measure. The Internal Revenue Service takes the position that it is powerless to end the disbursements because "current law entitles them to receive it."

The IRS is not undertaking a major investigation to uncover the fraud and penalize the perpetrators, who frequently list people as relatives who either are not actual relations or do not live with them.

Segall interviewed Treasury Department Inspector General for Tax Administration Russell George, who said that "millions of people are seeking this tax credit who ... are not entitled to it" and, despite recommendations from him to the IRS, the agency has "not taken sufficient action ... to solve the problem."

In George's report, he explains that "the payment of Federal funds through this tax benefit appears to provide an additional incentive for aliens to enter, reside, and work in the United States without authorization, which contradicts Federal law and policy to remove such incentives."

Illegal immigrants are required to file tax returns. Returns must be filed even if they report no taxable money earned--and it takes a mere $3,000 in annual income for them to be eligible for the additional child tax credit. To enable illegals to file returns, the IRS has created an Individual Taxpayer Identification Number (ITIN); this is employed in lieu of a Social Security number. Almost any amount can come to them simply by listing people as nieces and nephews. Some have received more than $9,000 from the IRS. A few have received as much as $40,000 or more.

The children are supposed to be no older than 17 and either U.S. citizens, nationals, or resident aliens. The IRS appears not to do any serious investigation to ensure compliance with the law before dispensing funds, and the amount of money pouring out of tax coffers to illegal immigrants continues to skyrocket.

Neither the IRS, Obama Administration, nor Congress has stopped this massive fraud. George's report urges the IRS to require individuals filing with ITINs and claiming the additional child tax credit to provide specific verifiable documentation to support that their dependents met each of the qualifications for the credit, including residency. He wants the IRS to flag questionable claims on ITIN returns and investigate every one before refunds are distributed. Once refunds leave the IRS, there is little, if...