Refunds for undocumented workers bilks taxpayers

Laura Tennant, Special to the Mason Valley News 9:05 p.m. PDT April 3, 2015

If President Barack Obama's executive order that gives amnesty to selected illegal immigrants is upheld by the courts, this nation's undocumented workers could receive large tax refunds, although they have never paid income taxes or filed a tax return.

The Obama amnesty proposal would allow undocumented immigrants to remain and work in the United States if they have lived in the country for at least five years and have children who are citizens or are legal permanent residents.

I assume that the words "undocumented immigrants" includes immigrants who have come to America from all over the world.

Although the U.S. tax code and system is conflicting and confusing, I am going to try to explain what I understand about how undocumented workers could get back tax refunds three years before they had Social Security numbers.

Under the president's new amnesty order, after illegal immigrants are registered and pass a background check, they can obtain Social Security numbers, which could make them eligible for Earned Income Tax Credit and tax refunds.

The Internal Revenue Service code gives "citizens" three years to amend previously submitted income tax filings, allowing them to spread out their earnings for taxable purposes over a three-year period.

And, the IRS says their codes permit noncitizens, who were issued Social Security numbers today, to go back three years to amend a tax declaration of earning that they did not formally file.

So, if Obama's plan becomes law, millions of formerly undocumented workers will receive Social Security numbers and be eligible for Earned Income Tax Credit refunds for three previous three years, although they had no legal citizenship status in America.

Earned income tax credits are managed like income tax withholdings from a citizen's paycheck and mainly apply to citizens who earn low incomes and is also determined by the number of people in a household.

No W-2s issued without SS numbers

As is known, illegal immigrants do not receive W-2 forms from employers because they do not have Social Security numbers, but if Obama's amnesty plan becomes law, millions of workers who made unreported wages will be allowed to claim tax refunds for the three years they did not have a Social Security number and paid no taxes. They will be asked to provide proof of their earnings.

Although the IRS says these workmen's records will be carefully scrutinized, how will it be possible for this already overloaded agency to efficiently review millions of new filings for tax refunds when no employment records exist?

I wonder how illegal immigrants can possibly prove they have been American residents for five years, let alone prove past undocumented earnings.

However, I have learned, finding paperwork to prove whatever is needed to bilk the American taxpayer will not be a problem because the false document publishing business thrives today.

Closing the loophole

The Washington Post recently reported that U.S. Sen. Charles Grassley, R-Iowa, is drafting legislation that opposes giving undocumented workers Earned Income Tax Credits before they had Social Security numbers.

"The tax code should not reward those who broke our immigration laws," said Grassley, noting the IRS should amend their code that benefits legal workers.

Sen. Ben Sasse, R-Neb., feared "amnesty bonuses or rewards would just increase the burden on law-abiding taxpayers."

Conservatives and liberal congressional delegates generally support the Earned Income Tax Credit program because it is an incentive for American citizens earning low wages to stick with their jobs.

http://www.rgj.com/story/news/local/...yers/25269611/

Just more of the intelligence displayed by college graduates in Congress. They have known since 2012 that aliens were bilking the IRS for billions. Now they want to do something to correct this nightmare. Well, I've seen many governmental promises never fulfilled, so folks, don't count on this one either.