Tags: Barack Obama | Immigration | Charles Grassley | illegal immigrants | IRS | refund

Sen. Grassley: Tax Code Rewards Illegal Immigrants With Refunds

Image: Sen. Grassley: Tax Code Rewards Illegal Immigrants With Refunds
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By    |   Monday, 02 Mar 2015 03:09 PM

The nation's tax code "shouldn't reward those who broke our immigration laws," says Sen. Charles Grassley, who says he may file a bill prohibiting illegal immigrants from collecting back income tax refunds.

According to the IRS, immigrants can claim refunds for up to three years, even if they did not pay income taxes, reports The Washington Times.

Agency lawyers have determined that when a person gets a Social Security number, that makes them potentially eligible for tax refunds through Earned Income Tax Credit, even for people who for one reason or another did not file or pay taxes in years past.

"Section 32 of the Internal Revenue Code requires an SSN on the return, but a taxpayer claiming the EITC is not required to have an SSN before the close of the year for which the EITC is claimed," IRS Commissioner John Koskinen wrote in a letter to Grassley last week, repeating a conclusion that was reached in 2000 that was recently confirmed.

But Grassley, an Iowa Republican who chairs the Senate Judiciary Committee, said in a statement that the ruling makes a mockery of the nation's tax laws.

The issue could result in millions of immigrants being able to collect back refunds, as President Barack Obama's deportation amnesty order grants legal status, work permits and Social Security numbers for qualifying immigrants.

Previously, Koskinen said illegal immigrants must prove they worked off-the-books to claim the tax credit without having paid taxes, but it is not known how many people who could claim amnesty under Obama's plan.

General tax law allows anyone to go back and claim refunds for up to three previous years, but the IRS ruling creates a circumstance in which immigrants who did not pay taxes could get refunds, the Times reports. However, Obama's amnesty program does not require such people to pay the back taxes they may owe.

According to a recent Congressional Research Report, an immigrant benefiting from the first year of amnesty could claim more than $35,000 in child tax credits and EITC payments, reports Brietbart.

The average EITC in 2012 was $2,300 and in 2014 was $6,143, Grassley's office reported.

"Given the IRS’ interpretation of tax rules intended to prohibit undocumented workers from qualifying for the EITC, these individuals will be eligible to claim billions of dollars in tax benefits based on earnings from unauthorized work in the United States," Grassley said Monday.

"With the stroke of a pen, the president rewarded those working illegally in the United States with a tax benefit that is designed to encourage low-income individuals to enter the workforce," he continued. "Given that the IRS is intent on standing by its present interpretation of the eligibility requirements, I’m working on legislation to uphold an important principle that many of us in Congress support."

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The nation's tax code shouldn't reward those who broke our immigration laws, says Sen. Charles Grassley, who says he may file a bill prohibiting illegal immigrants from collecting back income tax refunds.
Charles Grassley, illegal immigrants, IRS, refund
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2015-09-02
Monday, 02 Mar 2015 03:09 PM
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