How to stop child-tax credit fraud by illegal immigrants


By:Rep. Sam Johnson | 09/18/11 8:05 PM


A recent government report revealed that illegal immigrants improperly received billions in taxpayer dollars because of an easy-to-fix loophole in the federal income tax code.

The tax benefit at the heart of the debate is the popular child tax credit, which can reduce a parent's tax bill by up to $1,000 per child.

Because this credit is refundable, parents who owe no taxes can receive cash back from the government for their children through the tax code. Because the credit has been expanded over the years to help people make ends meet in the recession, the number of people claiming the credit has skyrocketed.

Defying common sense, this refundable tax credit can be provided to an illegal immigrant as long as the immigrant is able to obtain an Individual Taxpayer Identification Number from the Internal Revenue Service.

The new report shows that in 2010, the government's award of $4.2 billion through the credit to illegal immigrants was up from $924 million in 2005. In 2010, illegal immigrants received about 15 percent of the total $28.3 billion awarded through child tax credits. That's just wrong.

Specifically, the Treasury inspector general for tax administration concluded that the tax credit provides "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."

You'll be glad to know that earlier this year I introduced common-sense legislation to prevent illegal immigrants from bilking the taxpayers billions of dollars. In May, I proposed the Refundable Child Tax Credit Eligibility Verification Reform Act, H.R. 1956, a bill to require tax filers to provide their Social Security numbers to claim the refundable child tax credit.

The nonpartisan number crunchers at the Joint Committee on Taxation studied my legislation and determined that it would save $10 billion if the expanded child tax credit expired in 2012 or $24 billion if the expanded benefit were extended as the Obama administration has proposed.

With the dire need to cut government spending, I have a hunch that my common-sense proposal will get a serious look as way to stamp out waste, fraud and abuse. If you think illegal immigrants should not bamboozle taxpayers for billions of dollars every year by fraudulently claiming the child tax credit, then call the White House at 202-456-1414. Tell them that you support H.R. 1956 and that this should be a top priority for the president.

My tenure on the tax-writing Ways and Means Committee helps me better serve the great people of the 3rd Congressional District, Texas and America. Introducing and advocating the Refundable Child Tax Credit Eligibility Verification Reform Act, H.R. 1956, is one more way to do that. After all, the federal government works for the people -- not the other way around.

Rep. Sam Johnson is a Republican who represents the 3rd Congressional District in Texas.

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