In June, I noted that the IRS finally appeared taking steps to stop billions of tax dollars going to fraudulent claims filed by illegal immigrants. Apparently, I spoke too soon. The practice is seems to be continuing with little change (IRS wastes billions in bogus claims for Earned Income Tax Credit):
The Internal Revenue Service paid up to $13.6 billion in bogus claims for the Earned Income Tax Credit last year and as much as $132.6 billion over the past decade, according to an internal audit that already has some members of Congress questioning how the agency will be able to administer Obamacare.
IRS problems with the tax credit aren’t new. In fact, the Treasury inspector general for tax administration said it warned officials about the problems in 2011 — but two years later, the agency still hasn’t solved the situation and remains in violation of one of President Obama’s executive orders.
As noted in my June post, please see the outstanding series of investigative reports filed (all 12 reports available at linked page) by Bob Segall at WTHR in Indiana. In the latest report, denials are up but the majority of the problem remains thanks to IRS incompetence (IRS center that reviews info from illegal workers still plagued by “chaos”):
A year after WTHR aired its original investigation, senior investigative reporter Bob Segall returned to Austin to again meet with Antelis and other IRS tax examiners who work on the front lines at the ITIN Processing Center. Most of the workers are not impressed with the changes implemented by the IRS.
“It’s still a big scam going on,” Antelis said from his living room. “It’s still very easy to rip us off.”
Unsurprisingly, things don’t appear any better on the congressional level with Harry Reid blocking amendments to deal with the situation:
To make Congress’ intent clear – that only legal U.S. residents are entitled to ACTC credits — Grassley co-sponsored a clarifying amendment with Sen. Mike Enzi, R-Wy.
“Unfortunately, the majority leader (Harry Reid, D-Nev.) cut off debate, so we weren’t given the chance to offer our amendment,” said Grassley, the top Republican on the Senate Judiciary Committee.
I guess the IRS can get a crack team together to intimidate Tea Party folks and conservatives but putting an end to billions in actual fraud is a bridge to far. Guess everyone has their priorities…
Above linked WTHR video report: