Speech #1140000758

Mr. Speaker. today I introduced legislation to prevent illegal immigrants from claiming the refundable portion of the child tax credit. The refundable child tax credit provides cash payment to lowincome families who pay no income tax. The program was intended to be an additional cash benefit for families who receive the earnedincome tax credit. While administered through the tax code. it is a meanstested welfare expenditure. Since Social Security numbers are issued only to those who have the legal right to work in the United States. illegal immigrants use Individual Taxpayer Identification Numbers (ITIN). which are issued by the IRS regardless of legal status. ITINs allow a person to file a tax return and thus claim the tax credit. The Internal Revenue Services (IRS) Certifying Agent Program. which allows a person to apply for an ITIN on behalf of an individual with no verification of their immigration status. has compounded the abuse of ITINs for fraudulent tax claims. With no verification of a persons status on their tax return or at the issuance of an ITIN. the system has a significant fault. which allows taxpayer dollars to go to those who are not eligible. The Treasury Departments Inspector General for Tax Administration (TIGTA) has reported that illegal immigrants claimed $4.2 billion through this child tax credit in 2010. With the federal government borrowing heavily to finance deficits of nearly $1 trillion. we need to ensure federal benefits are only going to lawabiding citizens. We must take steps to solve this waste of taxpayer money by ending this gap in the tax code. If enacted. this legislation would require those claiming the tax credit to list their social security number or other proof of lawful immigration status on their tax return. It would also require the IRS to verify the proper documentation before issuing ITINs. The TIGTA has estimated this legislation would reduce federal spending by $8.4 billion over two years.