Featured News 2015 Bill Seeks to Stop Tax Refunds to Illegal Immigrants

Bill Seeks to Stop Tax Refunds to Illegal Immigrants

As President Obama's executive action moves its way through the courts, now the subject of tax refunds going to illegal immigrants has become controversial.

According to the IRS, under the Earned Income Tax Credit, illegal immigrants can claim refunds for the last three years. The Earned Income Tax Credit is the same refundable tax credit responsible for billions in fraudulent refunds.

What happens if an illegal immigrant never earned any income in the United States, and never filed a return? Under Obama's executive action, an illegal immigrant can:

  • Obtain a Social Security number
  • Claim the Earned Income Tax Credit (for the last three years)
  • Receive three years of tax refunds from the IRS

Under the President's executive action, an illegal immigrant could claim refunds even if they have never paid taxes, never filed a tax return before, or worked off the books. According to the IRS, this is how the Earned Income Tax Credit works.

Sen. Charles Grassley (R-Iowa), called the three year tax refund perk a mockery of the law. He also said that illegal immigrants would be able to claim billions in tax benefits.

Bill Seeks to Block Illegals from Earned Income Tax Credit

U.S. Rep. Patrick McHenry introduced a bill that is seeking to block undocumented workers from receiving the Earned Income Tax Credit.

Since illegals can apply for up to three years of tax breaks, Rep. McHenry believes that the chances of fraudulent returns are great, pointing out how in the past, many employed undocumented workers have used others' Social Security numbers.

McHenry said that if people are here counter to the law, they should not be able to recoup from taxpayers that which they were fraudulently getting.

McHenry has introduced the No Free Rides Act. If passed, the bill wouldn't block illegal immigrants from filing tax returns. Instead, it would prohibit them from taking advantage of the Earned Income Tax Credit.

Wondering how your immigration status affects filing taxes? Use our directory to find an immigration attorney near you!

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