The House of Representatives repeatedly has passed anIRS bill that could save U.S. taxpayers $24.4 billion over the next 10 years — butHarry Reid’s Democratic Senate will not hear it.
The Refundable Child Tax Credit Eligibility Verification Reform Act, or H.R. 556, would require tax filers to provide Social Security numbers to claim child tax credits.
Currently, the IRS allows undocumented residents to collect the $1,000 credits for dependents not even living in the country. Watchdog reported that illegal immigrants received $4.2 billion from the tax agency in just one year.
“My bill (targets) billions of dollars in waste, fraud and abuse. Instead of hitting up taxpayers for even more taxes, Washington needs to go after these billions of dollars,” said U.S. Rep. Sam Johnson, R-Texas.
Though the GOP-controlled House has passed Johnson’s measure three times, Senate Majority Leader Reid, D-Nev., refuses to allow the bill to come up for a vote in his chamber.
This, despite the fact that the Joint Committee on Taxation calculates that enactment of H.R. 556 would save taxpayers $24.4 billion over the next decade.
The IRS maintains it cannot discriminate between legal and illegal residents, but the agency does make that distinction when awarding Earned Income Tax Credits to low-wage filers.
Johnson said Congress expected due diligence for the Additional Child Tax Credit, given the 1996 Welfare Reform law signed by President Bill Clinton.
“The IRS has been doling out the credit to tax filers claiming children who do not even live in the country,” Johnson charged.
Tax preparers agree that the system is broken — and that the IRS must fix it. They say the agency has to stop disbursing ACTC refunds based on Individual Taxpayer Identification Numbers, which are available to undocumented residents.