2i1n016 IRS Ignores Appeals Court Decision; Continues Paying “Cilé Tax Cres to Wega Aliens | Center for Immigration Studies xe Center for Immigration Studies IRS Ignores Appeals Court Decision; Continues Paying "Child Tax Credits" to Illegal Aliens By Jan Ting en June 22,2017 According to ho Inspector Canral ofthe U.S. Treasury Deparmont te Intmal Revenue Sanice (IRS) cath yoar pays bills fells in “Chis tax rds" to gal ‘dona’ The cid tax ced, provided by section 24 of the beral Revenue Cade, seed aginst taxpayers federal income tax Hail of $1,000 foreach of he taxpayer’ chlérn? The radi is reduced for wxpaers whose income exceess a speifed amount? ‘These chil ax cos ar beng provided by the IRS to llega aensnotwihtancng thatthe Personal Responsilly and Work Opportunity Act of 1888 (PRHOA) lrg ago provided hat an itga ale snot lg for any Fadetalgublebenelit™* Accorcing to PRIOA, “ts @ compaing government isto remove te nentve fries Immigration provided bythe avalsiyof pute Sena. For purposes of he PRIVOA proniton, the tem "Federal public Berl” e dofned exreraly Srl, nkide ny feremart, wale, hea, sab, publ of aststed haus, postgecandaryeducaten fond sselanc, unersoymnert bene of any she sina Benet fot which payment or assistance are provided to an nv, heuschos or fail list unit by an agency of the Una Stats or by apropid furds of te Unig Stats."™ [though the IRS hes given no pubic explanation of why the cid tax ered isnot a “wel... siiar Benet for wtch payments or asistance are provided 1 an Indvidua (whicn cant ltl b0 paid oan ilgal an), tne Congressional Research Sence (CRS) considered that queston in a 2015 repr.” Tho repetpood out federal al cout had datamioad that heen ax cre was not a“publeazstancs bene fr purposas of US. benkrupty law? ‘Toe cours to whien he CRS rportrefrs has holt that not evry pu bene used asa "publ assistance Banfi” inasmuch as th tor “asistancs" imple a purpose to asi awncome amie, Thus, the “earned income tax cred under secon 32 ofthe Ine Revenue Code queda a “pute eastance banal because twa, ‘med at lowncome fami whl he child ex cod unr secon 2¢ not bacaie was mes at mdde-ncome fare.” Aa the CRS ponted ut slg te Ort English Detonary a rfarnce, th dlferance between a publ banet and "pbc assance boneltfthal a ounef is «payment mada byte slat. to sameone ones to raceve it wis “asistancs" isthe provison of mney 10 hap somoars." Technical speaking, the wor cout decison ted inthe CRS report never reaches the question of whether the chit ax eed was a “publi bene snc inthe opinion of ove couts the eta de not ford the “ssistance” that earacterzed a ‘publ asitance benef, te governing standard unde’ benkupey la. nary evet, hose docisons now have Ite bearing onthe quasion at hand becuse the U.S, Court of Appeals forthe Eight Cit subeequanty decid tat, for purposes of bankruptcy, te rturdable cil cae ced la "pub asstance tena’? The appeals cour singled De canary, ower-cour deco onthe pound that they were based on {09 orginal vorsion fhe ch ax cet and not ak ino accour subsequent amenémens by Congress args the bersis to owrcoms" fails." In tight of» decion by a U.S. Court of Aspens tat th chit ax crassa "publeassstance benef shoul be hard inl impossbe forthe IS justly cantnuaton of [te mplot potion hat the crest i ota puble benef. Neveteles, the IKelnogg ha the FS wil abide by the appellate cours dekon must be weighed agent sel ‘vent detormination lo futate te inert of Congress, a expressed in the PRWOA, o “move the icotve fr iogal migration provided by the aalabity of pic Donets” Unica claimant of he sarod income tax credit a taxpayer lining the cis ox coat nes not have a Socal Sorry number However, he crest must be claimed ona resting and woring nly in he United States sould nave an SSN, ‘Therm ate a rumbor of rounstanes in which a allon who does at reste in the United States (a ronrsient alo’) aon may naod lo le U.S income tax tin, aed the intemal Revenue Code authozes the Treasury Department to ssue an “ndvdual taxpayer Keitosion number (TIN to any person who propery documents hs “identi, foreign statis, nd oidoney™ Treasury Regiatone provid that an TN is gonealy ented "as blonging to a rovresiert lon nia” bat th the RS determines nat he alan anata "nonvealent ale, te IRS "maytag the allen to gpa for an SEN and may allow te lan fo use an TIN Wan SSN isnt eval."” ‘Toa natura roaing of hat regula shat the IRS may esue TINS o alan who spond ico much time inthe Unites Sats to qualify as nonesiden” Sut may navecholess ‘opted 2 "dont ak do tll poley of esung TIN to ills of alan who ee nthe Untod Stats. who woul nomally Ure an SSN asthe waentiyng number, bu who cannot got an SSN because thi US. residence tun though appears tat he IRS "ray do ti under the appcable Treasury Regulations. they are by no means cbigated todo so, and by doing so they undermine the inant ef Congress n PRIYOA "remove the ceria fe igal migration provid bythe avai of ble benofi” Tha Treasury Deparment of eure Foe amend i eguatons a remove the lophae ough whch ie IRS has pure lon of dlrs ints he hands of mmgraton aworsakors End Notes "Actons Are Needed to Ensue Proper Use of Induidul Taxpayer Ientifiation Numbers and to Very or Lint Retunbla Cred Cline", Reference Number 2008-40057, ‘Documentation, Raference Number: 20"0-40-005, Treasury Inspector General or Tax Adminisaten, December 8, 2002 Pause. gzie, 36, US. 526 0) i), See lo IRS, Puleation 972: Aedtional Chis Tox Cra, 2016, “BUS. §1611() (emphasis spp. Sausc 51601 hpsfeis.og/TinglIRS-Ignores-Appeals-Court-Decision-Continues-Paying-Chit-Tax-Credis-egal-Aiens 12