[Rushtalk] Federal Fraud...........

William White wbbanjo at yahoo.com
Tue Jun 18 22:33:18 MDT 2013

Sad to see good men being used to prop up the regime.

 From: John A. Quayle <blueoval57 at verizon.net>
To: Rushtalk <rushtalk at csdco.com> 
Sent: Tuesday, June 18, 2013 6:16 PM
Subject: [Rushtalk] Federal Fraud...........

The IRS Immigration Fraud ScandalBy Jeffrey Lord on
6.18.13 @ 6:09AM

Rubio, Ryan losing credibility over amnesty as fraud issue

Marco Rubio.

Paul Ryan.

The IRS.

Illegal immigration.

And fraud to the tune of billions..

Now there’s a combustible mix.

Let’s start with the IRS, illegal immigration and fraud. We’ll come back
in a minute to Senator Rubio and Congressman Ryan.

For those who came in late, a year before the IRS scandals burst onto the
scene in early May of 2013, an alert investigative reporter for
WTHR-Indianapolis (Channel 13), Bob Segall by name, produced a stunning
piece of journalism. Segall’s video report is found here and we will quote from his story for the basics. The tale begins
when an Indiana tax preparer, who requests anonymity, comes to Segall to
alert the investigative reporter to a major league tax fraud. The bold
print for emphasis is mine.

“We’re talking about a multi-billion dollar fraud scheme here that’s
taking place and no one is talking about it,” he (the tax preparer)

The scheme involves illegal immigrants ­ illegal immigrants who are
filing tax returns.

How it works 
The Internal Revenue Service says everyone who is employed in the
United States ­ even those who are working here illegally ­ must report
income and pay taxes. Of course, undocumented workers are not supposed to
have a social security number. So for them to pay taxes, the IRS created
what’s called an ITIN, an individual taxpayer identification number. A 9-digit ITIN number issued by the
IRS provides both resident and nonresident aliens with a unique
identification number that allows them to file tax returns.

While that may have seemed like a good idea, it’s now backfiring in a
big way.

Each spring, at tax preparation offices all across the nation, many
illegal immigrants are now eagerly filing tax returns to take advantage
of a tax loophole, using their ITIN numbers to get huge refunds from the

The loophole is called the Additional Child Tax Credit. It’s a
fully-refundable credit of up to $1000 per child, and it’s meant to help
working families who have children living at home. 

But 13 Investigates has found many undocumented workers are claiming
the tax credit for kids who live in Mexico ­ lots of kids in Mexico.

“We’ve seen sometimes 10 or 12 dependents, most times nieces and
nephews, on these tax forms,” the whistleblower told Eyewitness News.
“The more you put on there, the more you get back.”

The whistleblower has thousands of examples, and he brought some of
them to 13 Investigates. While identifying information such as names and
addresses on the tax returns was redacted, it was still clear that the
tax filers had received large tax refunds after claiming additional child
tax credits for many dependents.

“Here’s a return right here: we’ve got a $10,300 refund for nine
nieces and nephews,” he said, pointing to the words “niece” and “nephew”
listed on the tax forms nine separate times.

“We’re getting an $11,000 refund on this tax return. There’s seven
nieces and nephews,” he said, pointing to another set of documents. “I
can bring out stacks and stacks. It’s just so easy it’s

20 kids = $30,000 
WTHR spoke to several undocumented workers who confirmed it is

They all agreed to talk with WTHR investigative reporter Bob Segall
and a translator as long as WTHR agreed not to reveal their

One of the workers, who was interviewed at his home in southern
Indiana, admitted his address was used this year to file tax returns by
four other undocumented workers who don’t even live there. Those four
workers claimed 20 children live inside the one residence and, as a
result, the IRS sent the illegal immigrants tax refunds totaling

13 Investigates saw only one little girl who lives at that address (a
small mobile home). We wondered about the 20 kids claimed as tax

“They don’t live here,” said the undocumented worker. “The other kids
are in their country of origin, which is Mexico.”

He later explained none of the 20 children have ever visited the
United States ­ let alone lived here.

So why should undocumented workers receive tax credits for children
living in a foreign country, which is a violation of IRS tax rules?

“If the opportunity is there and they can give it to me, why not take
advantage of it?” the worker said.

Other undocumented workers in Indiana told 13 Investigates the same
thing. Their families are collecting tax refunds for children who do not
live in this country. Several of the workers told WTHR they were told it
was legal for them to claim the tax credit for a child who does not live
in the United States.

Stop here.

So what Segall uncovered is massive tax fraud by illegal immigrants
through the use of the Additional Child Tax Credit.

Segall then goes to a man who, barely a year later, would become a
familiar face to Americans. The Inspector General of the Treasury
Department, Russell George. George, on camera, says this of his repeated
warnings to the IRS about this problem:

“The magnitude of the problem has grown exponentially,” said Russell
George, the United States Department of Treasury’s Inspector General for
Tax Administration (TIGTA).

And he says the IRS has known about the problem for years.

George has repeatedly warned the IRS that additional child tax
credits are being abused by undocumented workers. In 2009, his office
released an audit report that showed ITIN tax filers received about $1
billion in additional child tax credits. Last year, the inspector general
released a new report showing the problem now costs American taxpayers
more than $4.2 billion.

“Keep in mind, we’re talking $4 billion per year,” he said. “It’s
very troubling.”

What George finds even more troubling is the IRS has not taken action
despite multiple warnings from the inspector general.

“Millions of people are seeking this tax credit who, we believe, are
not entitled to it,” said the inspector general. “We have made
recommendations to [IRS] as to how they could address this, and they have
not taken sufficient action in our view to solve the problem.” 

Stop again.

After noting that filings for the ACTC have soared since 2001, the cost
skyrocketing from $161 million in 2001 to $4.2 billion ­ say again,
billion ­ in 2010, Segall goes to the IRS for comment.

What he gets is this:

The law has been clear for over a decade that eligibility for these
credits does not depend on work authorization status or the type of
taxpayer identification number used. Any suggestion that the IRS
shouldn’t be paying out these credits under current law to ITIN holders
is simply incorrect. The IRS administers the law impartially and applies
it as it is written.

That was all. Repeated requests for on camera interviews with IRS
officials were denied. Period.

Inspector General George, however, took immediate issue with that
statement issued by the IRS. Reports Segall:

George disagrees with that position and believes the IRS should be
doing more to prevent undocumented workers from getting billions in U.S.
tax dollars.

“The IRS is not doing something as simple as requesting sufficient
documentation from people seeking this credit,” he said. “Once the money
goes out the door, it’s nearly impossible for the IRS to get it

End of story.

What does this one snapshot of massive tax fraud captured so vividly by
reporter Segall have to do with Senator Rubio and Congressman


Senator Rubio is in fact aware of the problem and has introduced
legislation to stop the fraud. For this he has been attacked by Hispanic
left-wing activists as reported here in the Miami Herald in May of 2012. So too is Congressman Ryan
aware of the problem and, in this May 2012 story from WTHR Bob Segall

“This is where our taxpayer money is going, to the [additional] child
tax credit,” said Rep. Paul Ryan (R-WI) Thursday morning during
Congressional debate. “One investigation in Indiana said illegal
immigrants in Indiana are getting $29,608 for 20 children they claimed
for the tax credit who live in Mexico and have never visited the United
States before!”

Rep. Ryan, chairman of the House Budget Committee, wants tax credits
for illegal immigrants stopped, and so do many other lawmakers who saw
WTHR’s investigation. They debated it Thursday morning on the floor of
the House after being bombarded by phone calls and e-mails from
constituents who watched the Eyewitness News report online.


Here’s the problem ­ and it’s potentially a very big problem for Rubio
and Ryan.

The two men, Rubio in the Senate as a member of the so-called Gang of
Eight, and Ryan in the House, have aggressively gone out front on the
issue of immigration.

Ryan has even declared that “I will debate anybody who tries to suggest
that these ideas that are moving through Congress are amnesty. They’re
not. Amnesty is wiping the slate clean and not paying any penalty for
having done something wrong.”

Over at National Review Mark Krikorian calls the Florida Senator’s Gang
of Eight bill “Rubio’s Amnesty” in this piece and says this of the Rubio Senate bill:

The result of all this is S.744, a sprawling, 844-page measure
legalizes most of the illegal population (plus many who were deported and
are currently living abroad), promises tougher enforcement in the future,
and hugely increases all forms of legal immigration, low- and
high-skilled, temporary and permanent…..

Then we got to see the actual text of the legislation. Rubio’s
promised provisions are absent. Regarding back taxes, for instance, the
bill requires only that applicants “satisfy any applicable federal tax
liability” that has previously been “assessed” by the IRS. But a tax is
“assessed” only after a tax return has been submitted or after the IRS
has conducted an audit. Since neither of those things happens with
illegal immigrants working off the books, there aren’t any back taxes to
be paid.

The fine for legalization is small ­ just $500 up front and $500 paid
in installments, in return for lifetime legal access to the U.S. labor
market. And while $500 can be a lot for an illegal immigrant, in a
certain sense it isn’t a fine, since the money would go into a slush fund
for DHS to dole out to groups such as La Raza, which are in turn to
provide services for the very amnesty beneficiaries who paid the fines.
(Conservative writer John Fonte has called this the Alinsky Fund.) Even
such a modest penalty is absent for crooked employers. They get amnesty
for free ­ amnesty from prosecution for knowing employment of illegal
aliens, non-payment of wages, non-payment of payroll taxes, and
facilitation of identity theft.

As for learning English, the language requirement applies only to
already-amnestied immigrants seeking the upgrade to full green card, and
even then, requires only enrollment in a class, not demonstration of
actual proficiency (which is what is required for citizenship).

Moreover, the bill provides for a huge increase in legal immigration
­ and not just increased numbers but increased complexity, in a system
already excessively complex. It has special provisions for guest workers,
farm laborers, and foreign technology workers, doctors, and nurses, as
well as retirees, entrepreneurs, and foreign students graduating with
technical degrees. The Schumer-Rubio bill simply seeks to placate every
interest group at the table by handing out more visas. Numbers USA has
estimated the number of green cards that would be issued during the first
decade of the bill’s operation at 33 million. About one-third of those
would be illegal aliens receiving amnesty, so new immigration would go
from about 1 million per year to 2 million.

…Finally, securing the Mexican border. The benchmark given in the
bill is called “effective control” and means surveillance of 100 percent
of the border and apprehension of 90 percent of attempted infiltrators.
This is absurdity many times over.


What does the reality of the Rubio bill, and the aggressive defense of
Ryan have to do with that year-old investigative piece out of

Everything. And while we like both Senator Rubio and Congressman Ryan,
their actions raise troubling red flags both on the immigration bill and
their respective potential runs for president in 2016.


At the core of the Indiana story about tax fraud by illegal immigrants is
yet again the realization that Big Government has gone off the rails. It
is so far from the original vision of the Founders as expressed in the
Constitution as to be hell-and-gone.

What the Indiana story of massive IRS fraud by illegal immigrants vividly
illustrates is yet another story of corruption and government gone wild.
It is the same story as the IRS ­ Tea Party scandal. It is the same story
as the NSA-Edward Snowden issue. It is the same story as Benghazi. It is
the same story as State Department cover-ups of tales of State Department
employees involvement with prostitutes, sexual assaults, and illegal

Time and time and time again this always comes back to the incompetence
and/or corruption of a government that is seen as being run by arrogant
mandarins of the ruling class elite.

Knowing all of this, both Rubio and Ryan are out there actively selling
the idea that this time government will get it right. That this time
their solutions to an out-of-control illegal immigration problem­ which
relies 100% on a Big Government that has failed over and over and over
again and can’t even manage to control the border ­ are going to work.
Really. Honest.

In truth? This is nonsense on stilts.

Both men are in the process of developing the immigration reform issue
into a serious credibility problem with their own conservative

Nor is the immigration issue helped when Senator Lindsey Graham says the whole point of the exercise is to “get back in the good
graces” of Hispanics. (Note: this is the same Senator Graham who went
after Pennsylvania conservatives ­ Pat Toomey in particular ­ for
allegedly driving then-GOP Senator Arlen Specter from the party. Graham’s
candidate: liberal ex-Governor Tom Ridge. Suffice to say, Toomey won.
Graham’s notion that a conservative was a loser in Pennsylvania was flat
dead wrong.)

When Congressman Ryan hotly declares that the “bipartisan” immigration
bill is not amnesty ­ and the bill is revealed to be more of the same of
the 1986 Reagan immigration bill ­ which Reagan himself considered to be
amnesty ­ his credibility plunges.

The other day in the Wall Street Journal, Karl Rove tried to pass off a
version of this same idea and was instantly challenged in the WSJ by
former Reagan Attorney General Edwin Meese III. Wrote Meese, bold print for emphasis mine:

Karl Rove’s recollection of the 1986 Immigration Reform and Control
Act (“Immigration Reform and the Hispanic Vote,” op-ed, June 6) is, shall
we say, highly selective. That law, he writes, “essentially told those
here illegally that if they had arrived in the U.S. prior to 1982 and
wanted to become citizens, simply raise your right hand.” He asserts that
the Gang of Eight bill is different because it “has plenty of penalties
and hurdles for those here illegally who seek citizenship.”

Well, I was there in ‘86. I read that bill carefully. (We did that
back then.) And I can tell you that Mr. Rove’s blithe description of the
bill is way off the mark.

The 1986 act didn’t turn illegal immigrants into citizens on the
spot. It granted temporary resident status only to those who could prove
they had resided continuously in America for five years. After 18 months,
their status could be upgraded to permanent residency, and only after
another five years could they become U.S. citizens.

But advancement to citizenship was not automatic. Immigrants had to
satisfy various requirements along the way. They had to pay application
fees, learn to speak English, understand American civics, pass a medical
exam and register for military selective service. Those with convictions
for a felony or three misdemeanors were ineligible.

Sound familiar? It’s pretty much the same “penalties and hurdles” set
forth by the Gang of Eight. Today they call it a “roadmap to
citizenship.” Ronald Reagan called it “amnesty.”

The ‘86 reform bill also had supposedly “rigorous” border security
and immigration law enforcement provisions. So how did that pan out? On
the day Reagan signed “comprehensive” reform into law, only one thing
changed: Millions of unlawful immigrants gained “legal” status. The
promised crackdowns on security and enforcement never happened. Only
amnesty prevailed.

Since the ‘86 amnesty, the number of illegal immigrants has
quadrupled. That should teach Congress a very important lesson: Amnesty
“bends” the rule of law. And bending the rule of law to reach a
“comprehensive” deal winds up provoking wholesale breaking of the law.
Ultimately, it encourages millions more to risk entering the country
illegally in the hope that one day they, too, might receive amnesty. 

In other words, what Meese is saying here is that what he sees ahead
is a government that refuses to learn from experience when dealing with
immigration ­ and learning from experience is basic to

Increasingly and dangerously Rubio and Ryan are being seen as sons of the
Republican Establishment who, if they ever were elected president, would
spend their time in Bush-like tinkerings at the margin of Big Government
when not expanding it outright. Their inability to learn from the Reagan
immigration experience is a startling admission that perhaps neither man
is as conservative as once thought.

Are they good men? Yes. Talented and conservative in many respects. But
alas, what is on display right this minute from both is the same old
Republican Establishment flirtation with Big Government.

Trust the government, say Rubio and Ryan. Really. This time it will work.

The problem?

After an endless series of stories about incompetence or outright
corruption in one government scandal after another, not to mention the
massive failure of the 1986 Reagan immigration law, there are
conservatives aplenty who listen to Marco Rubio and Paul Ryan and simply
don’t believe a word they say on immigration.

Not good.

Photo: UPI 

About the AuthorJeffrey Lord is a former Reagan White
House political director and author. He writes from Pennsylvania at jlpa1 at aol.com.
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