Va. woman admits $7.2 mil. child-credit tax scam

Article author: 
Kenric Ward
Article publisher: 
WatchDog dot Org
Article date: 
25 November 2014
Article category: 
National News
Article Body: 

More than a year after Watchdog reported the IRS sent thousands refunds to the tiny town of Parksley, Va., a woman has pleaded guilty ...

Linda Avila admitted to obtaining more than $7.2 million in refunds by exploiting the federal government’s child tax credit program.

Avila filed more than 1,700 tax returns with stolen identifications used by illegal immigrants, mainly from Mexico ...

The tax returns frequently cited foreign dependents, which increased the refund amounts ...

Avila’s case is just the tip of the iceberg.

Sen. Charles Grassley, R-Iowa, said the IRS mailed $4.2 billion in child-credit checks to undocumented immigrants around the country ...

Watchdog reported in June 2013 that disbursements via the Additional Child Tax Credit program have grown rapidly with the IRS’ increased issuance of Individual Taxpayer Identification Numbers as substitutes for Social Security numbers.

ITIN holders are not required to prove legal residency, and ITIN applications are running at the rate of 1 million a year.

Under the Obama administration’s new, loosened immigration rules, holding a Social Security card or an ITIN number would become a distinction without a difference ...

CAIRCO Research
Transcript: Obama’s immigration speech
  [...] We expect people who live in this country to play by the rules. We expect those who cut the line will not be unfairly rewarded ... If you register, pass a criminal background check and you’re willing to pay your fair share of taxes, you’ll be able to apply to stay in this country temporarily ...
I.R.S. - General ITIN Information - What is an ITIN? An Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the Internal Revenue Service ... IRS issues ITINs to individuals who are required to have a U.S. taxpayer identification number but who do not have, and are not eligible to obtain a Social Security Number (SSN) from the Social Security Administration (SSA).

ITINs are issued regardless of immigration status because both resident and nonresident aliens may have a U.S. filing or reporting requirement under the Internal Revenue Code