Democrat Congress ignored warnings on payout of billions to illegals

Speaker Nancy Pelosi (D-Calif.) preened for TV cameras on Thursday, proud of her efforts to enable a tax increase on what she and her fellow Democrats call the “wealthy.” But Pelosi and Senate leader Harry Reid have ignored a series of warnings from the U.S. Treasury Dept. about the payout of billions in tax refunds to illegal aliens. Many Americans believe you have to have a social security number to get such payouts—you don’t.

The Center for Immigration Studies said, “The Treasury Dept. reports that illegal immigrants filing tax returns using the Individual Tax Identification Number (ITIN) are receiving more than $1.5 billion each year from the federal government through the Child Tax Credit (CTC) and the Additional Child Tax Credit (ACTC).”

CIS explained in the November backgrounder, Child Tax Credits for Illegal Immigrants by Peter A. Schulkin, the ITIN was originally created in 1996 for foreign investors who have to file tax forms but can’t legally get a social security number. But CIS said the Internal Revenue Service has permitted illegals to “apply for and use the ITIN for filing income tax returns related to income earned in the U.S.”

CIS also noted, “All but a small minority of people using ITINs today are illegal immigrants.”

Congress has never changed the law to require a social security number to get refunds based on the number of children listed on a tax form. Individuals who have no tax liability and earn less than $50,000 a year can get up to $1,000 per child. United Way is one agency that helps everyone get these refunds that can be deposited directly into a bank account. United Way sponsors public service ads about such refunds and provides information about documentation needed on websites.

In 2009 a Treasury Report warned that “Actions are needed to ensure proper use of Individual Taxpayer Identification Numbers and to verify or limit refundable credit claims.”

In 2007 ITIN filers got checks totaling $1.78 billion.

In 2008 a Treasury Inspector General for Tax Administration report indicated “total refunds due for new ITINs issued in the January 1, 2008-November 21, 2008 period were projected to amount to $1.929 billion based on statistical sampling.”

The paperwork used to obtain these refunds often contains errors. CIS said Treasury reported that, “based on a statistical sampling, 87 percent of ITIN applications submitted by Certified Acceptance Agents contained errors, primarily in supporting ID documents being missing or illegible and that, in addition more than 55,000 ITINs were used multiple times on approximately 102,000 tax returns, with refunds totaling more than $202 million.”

While Pelosi praised her own political skills in taxing the so-called “rich,” she and her colleagues in the Democrat Congress ignored repeated warnings from Treasury. Meanwhile billions continue to be paid by American taxpayers to people who are citizens of a foreign country.

Considering climate change policy, President Barack Obama’s ban on offshore drilling by the U.S. and a refusal to address critical issues in US immigration policy, it appears Democrats have a de facto policy of redistributing US wealth to foreign citizens.

Some call this final politically frenzied session of the Democrat controlled Congress the Lame Duck. A more appropriate term might be the Daffy Duck.

[Commentary by Kay B. Day/Dec. 3, 2010]