Senior IRS Officials Ignored Reports on Illegal-Alien Tax Fraud
Friday, August 10, 2012, 9:53 AM EDT – posted on NumbersUSA
IRS supervisors reportedly ignored employees who warned against possible tax fraud being committed by illegal aliens.
Earlier this year. WTHR in Indianapolis did an investigative report exposing a loophole that allows illegal aliens to request Individual Tax Identification Numbers (ITIN) that can then be used to claim the child tax credit on their income tax forms. The IRS currently pays out $6.8 billion in refunds to tax filers using ITINs.
A study by the Treasury Department’s Inspector General said that the IRS focused too much on getting refunds out quickly instead of making sure they were sending refunds to qualified taxpayers. Auditors also found that new procedures took away measures that could help tax processors identify fraudulent returns.
“[The Treasury Inspector General] found an environment which discourages employees from detecting fraudulent applications,” said J. Russell George, the inspector general.
According to the Washington Times:
Investigators said the IRS issued 23,994 refunds to one address in Atlanta, totaling $46 million in refunds.
And one single bank account was issued 8,393 refunds totaling $236,747, while another account was issued 2,706 refunds totaled $7.3 million in 2011.
“This report is shocking,” said Rep. Charles W. Boustany Jr., Louisiana Republican and chairman of the House subcommittee that oversees the IRS. “It’s one thing if the IRS tries to catch fraud and fails, but it’s quite another when management apparently takes steps to weaken program integrity.”
Multiple bills have been introduced in Congress to close the loophole, including one by Rep. Sam Johnson of Texas. Rep. Johnson has called for the resignation of the IRS Commissioner over the matter.
For more information, see the Washington Times.