Report Highlights Income Tax Loophole that’s Costing Taxpayers $4.2 Billion per Year

A report that aired on local television station WTHR in Indianapolis highlights an income tax loophole that is allowing illegal aliens to receive massive refunds from the IRS at the expense of U.S. taxpayers. According to the report, illegal aliens are filing false returns, claiming their own children, nieces, and nephews who, in some cases, don’t even live in the United States to receive the alternate child tax credit. The cost to taxpayers is $4.2 billion per year.Multiple bills have been offered in Congress to address the loophole – the most recent bill is the Child Tax Credit Integrity Preservation Act offered by Rep. Jack Kingston (R-Ga.) in the House and Sen. David Vitter (R-La.) in the Senate. The bills would require anyone who claims the child tax credit to have a valid Security number and a valid number for the child they’re claiming on their tax return. Currently, tax filers can use an ITIN (Income Tax Identification Number) to claim the credit.Watch the full report from WTHR.