Illegal immigrants given deportation amnesty under President Barack Obama's new executive actions will be able to receive tax refunds from the IRS for money they earned while working illegally, IRS Commissioner John Koskinen confirmed on Tuesday.
As long as the illegal immigrants filed returns during the years they were working, Koskinen said they will be provided official Social Security numbers and can retroactively amend up to three years of previous tax forms to claim the Earned Income Tax Credit, reported The Washington Times.
Such a loophole could result in illegal immigrants being awarded billions of dollars in additional payments they were ineligible for prior to Obama's amnesty.
Koskinen made the comments in response to questioning from Sen. Chuck Grassley, R-Iowa, during a hearing Tuesday.
"Mr. Commissioner, can you confirm that those granted deferred action will be eligible to benefit from the [Earned Income Tax Credit] for years in which they were working without papers in the United States once they obtained a - once they obtain a Social Security number?" Grassley asked.
Koskinen explained the position held by the IRS, adding, "Then the program allows you to file for an earned income tax credit program, in terms of whether you can do that retroactively, the normal statutes of limitations would apply as to when you can apply, file and amended return, in effect."
But the fact that the IRS will be seemingly rewarding lawbreakers irritated Grassley.
"This is a problem you get into," Grassley said. "The IRS's interpretation of the EITC eligibility requirements undermines congressional policy for not rewarding those working illegally in the United States."
Grassley asked whether the IRS expects to reconsider its interpretation of the policy, to which Koskinen replied, "At this point, I'm not aware that we're going to do that, but I'd be happy to get back to you."
As the Times notes, the loophole exists mainly because the IRS wants to get paid taxes on earnings for work done in the U.S., even if that work was done by illegal immigrants not authorized to legally work in the country.
