IRS Commissioner Admits Illegal Aliens Can Get Back Taxes Under Obama’s Executive Amnesty

IRS Finally Admits Illegals Can Get Back Taxes Under Obama Amnesty – Washington Times

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IRS Commissioner John Koskinen has confirmed to Congress that illegal immigrants granted amnesty under President Obama’s new programs could claim back refunds even when they never filed returns to pay their taxes in the first place.

Sen. Chuck Grassley, who had pressed Mr. Koskinen over the issue, released written responses Wednesday in which the commissioner admitted he’d botched the question earlier and, in fact, illegal immigrants granted the amnesty will now be able to claim refunds on tax returns they never even filed, thanks to the Earned Income Tax Credit.

“To clarify my earlier comments on EITC, not only can an individual amend a prior year return to claim EITC, but an individual who did not file a prior year return may file a return and claim EITC (subject to refund limitations under section 6511 of the Internal Revenue Code),” Mr. Koskinen said.

He insisted, however, that he doubts many illegal immigrants will take advantage of the loophole because they would have to be able to prove their earnings for those years they never filed returns.

“Filers would have to reconstruct earnings and other records for years when they were not able to work on the books,” he said.

Taxpayers must have Social Security numbers in order to claim the EITC, and illegal immigrants aren’t supposed to have numbers. But Mr. Obama’s new deportation amnesty grants illegal immigrants work permits, which are then used to obtain Social Security numbers.

IRS lawyers have ruled that once illegal immigrants get numbers, they can go back and refile for up to three previous years’ taxes and claim refunds even for time they were working illegally.

The lawyers said since the EITC is a refundable credit, that’s allowed even when the illegal immigrants worked off the books and never paid taxes in the first place.

“Section 32 of the Internal Revenue Code requires an SSN on the return, but a taxpayer claiming the EITC is not required to have an SSN before the close of the year for which the EITC is claimed,” Mr. Koskinen said. “At your request, the IRS has reviewed the relevant statutes and legislative history, and we believe that the 2000 Chief Counsel Advice (CCA) on this issue is correct.”

Mr. Koskinen had initially said illegal immigrants could claim refunds, but only for years they’d filed returns and presumably had paid some taxes.

Most of Mr. Obama’s amnesty is on hold after federal courts ruled he likely broke the law by acting on his own without Congress‘ approval and without putting his policy out for public review and comment.

But a 2012 policy that applies to so-called Dreamers, or young adult illegal immigrants brought to the U.S. as children, is in effect.

Homeland Security has approved 664,607 initial applications for Dreamers, and approved another 243,872 renewals over the last year, extending the initial two-year amnesty for another two years.

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The IRS Hates Tax Cheats… Unless They Work For The IRS

IRS Gave Promotions To Tax Cheaters: Audit – Washington Times

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The IRS refused to fire most of its own employees found to be cheating on their taxes – and in some cases even quickly turned around and promoted them within the year, according to a new audit released Wednesday.

In about 60 percent of cases of “willful violations” IRS managers found mitigating circumstances and refused to fire the employees, even though the law calls for that penalty. In some of those cases the managers didn’t even document why they’d overridden the penalty, said Treasury Inspector General for Tax Administration J. Russell George.

“Given its critical role in Federal tax administration, the IRS must ensure that its employees comply with the tax law in order to maintain the public’s confidence,” Mr. George said. “Willful violation of the law by IRS employees should not be taken lightly, and the IRS Commissioner should fully document decisions made to retain employees whom management has proposed be terminated.”

During the decade from 2004 to 2013, the IRS identified nearly 130,000 potential cases of tax violations by its own employees, and concluded about 10 percent of those were actual violations. Mr. George said the agency did a good job of spotting those issues.

Of those 13,000 cases, 1,580 were deemed to be intentional cheaters, and they were sent to managers for discipline. But in 60 percent of the cases, the managers refused to fire the employees.

Among the abuses were employees who repeatedly failed to file their returns on time, those who intentionally inflated their expenses and those who claimed the stimulus homebuyer’s tax credit without actually buying a home.

The IRS said its employees have a compliance rate of higher than 99 percent, which is actually much higher than other employers and is tops among all major federal agencies.

“Over ten years, TIGTA found an average of a little more than 150 IRS employees a year committed a willful tax violation. Of the total cases, 620 – or nearly 40 percent – resulted in the employee leaving their position because they were terminated, resigned or retired. Others faced strong disciplinary actions that included terminations, suspensions and reprimands,” the agency said.

The IRS also said it has taken steps to cancel bonuses that would otherwise have been paid to the tax cheats.

“Nonetheless, the IRS agrees that we can improve this process. The changes will include a more proactive approach to ensure timeliness and consistency and provide more transparency in the mitigation process while preserving the commissioner’s authority provided by federal law,” the agency said in its statement.

Of the 1,580 employees deemed to have intentionally cheated on their taxes, 108 of them received no punishment at all. The others were at least admonished, while 25 percent were fired and 14 percent were allowed to resign or retire instead of being fired.

The vast majority of substantiated reports involved “nonwillful” violations. Of those, just 238, or about 1 percent, were deemed serious enough to be fired. Another 1 percent were allowed to retire or resign, 47 percent were admonished, 26 percent were sent to counseling and 14 percent were closed without any punishment.

More than 2,000 employees had multiple red flags during the decade, the inspector general said. Investigators pulled a sample of 15 cases where an employee had repeated intentional violations and found that even there, the majority were allowed to remain on the job.

The inspector general took a sampling of 364 cases of intentional cheaters and found that 108 of them were not only not fire, but were given raises or promotions within a year of being found to be cheating.

Sen. Orrin G. Hatch, chairman of the Finance Committee, which oversees the IRS, said the report was a black mark for the IRS.

“Even worse, the agency appears to have rewarded some of them with cash bonuses, promotions, and paid time off,” the Utah Republican said. “This is unacceptable – American taxpayers deserve better.”

IRS Commissioner John Koskinen, who along with a review board must approve the decision to keep any employees deemed to have intentionally cheated on their taxes, has insisted things at his agency have improved over the last two years, which is when another report from Mr. George exposed that the IRS had singled out tea party groups for special scrutiny in their tax-exempt applications.

Mr. Koskinen has argued that budget cuts have eviscerated morale at the IRS, and he has pleaded with Congress to give him more money to hire staff. He also defended doling out bonuses to employees.

“They are not bonuses. They are performance awards. Over 40, 45 percent of the employees don’t get them. You only get them if you perform,” he said.

But he said he’s taken steps to try to make sure tax cheats don’t get awards.

“Even though we have over 99 percent compliance, I thought it was an important point,” he said.

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*VIDEO* Ted Cruz: Interview – United States Hispanic Chamber Of Commerce


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There’s A Reason Why Customer Service At Obama’s IRS Sucks

Report: IRS Deliberately Cut Its Own Customer Service Budget – Weekly Standard

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If you tried to contact the IRS with a question about your taxes this year, chances are you didn’t get a response. The IRS estimated that it would only answer 17 million of the 49 million calls received this filing season. Taxpayers lucky enough to have the IRS answer their calls waited an average of 34.4 minutes for assistance – nearly double the wait time last year (18.7 minutes).

IRS Commissioner John Koskinen has blamed the IRS’s “abysmal” customer service on congressional budget cuts – funding is down $1.2 billion from its 2010 peak – but a new congressional report points the finger back at the IRS. While congressional funding for the IRS remained flat from 2014 to 2015, the IRS diverted $134 million away from customer service to other activities.

In addition to the $11 billion appropriated by Congress, the IRS takes in more than $400 million in user fees and may allocate that money as it sees fit. In 2014, the IRS allocated $183 million in user fees to its customer service budget, but allocated just $49 million in 2015 – a 76 percent cut.

Commissioner Koskinen will appear before the House Ways and Means Committee this morning, one week after the federal tax filing deadline, and he can expect to be asked why the IRS cut its own customer service budget and continues to spend money on other questionable activities.

The report notes that Koskinen reinstated bonuses weeks after his appointment, has allowed IRS employees to spend roughly 500,000 work hours on union activities, and failed to collect delinquent taxes owed by federal employees. The tax agency has also been strained by Obamacare. According to the report, the IRS has spent “over $1.2 billion on the President’s health care law to date, with a planned expenditure this year of an additional $500 million.”

The IRS’s total annual $11 billion budget is dwarfed by the amount of improper tax payments it makes each year. According to the report, the IRS paid out $17.7 billion in improper Earned Income Tax Credit payments (which are supposed to help poor and low-income individuals) and an additional $6 to $7 billion in improper child tax credit payments.

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Infernal Revenue Service Ignoring Over 60% Of Taxpayer Phone Calls

IRS Ignoring Over 60% Of Taxpayer Phone Calls As Tax Deadline Looms – Right Scoop

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Wow. In 7 years Obama has this agency so screwed up with Obamacare that they are forced to ignore a whopping 60% of all taxpayer phone calls because service has gotten so bad:

WASHINGTON TIMES – IRS Commissioner John Koskinen said Tuesday that service at his agency has gotten so bad that they are ignoring more than 60 percent of taxpayers’ phone calls during this tax season.

Speaking at the National Press Club, Mr. Koskinen pleaded with more money, saying a budget boost would help them staff their overwhelmed customer service lines. He also said it would help reverse staffing cuts in their compliance division, where he said the government will lose $2 billion this year in money it would otherwise have been able to collect if it had better staffing.

If you can’t get through to the IRS, you should call the White House and see if Barack has some free time to help you.

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Over 100,000 Federal Employees Owe Back Taxes Totaling $1.4 Billion

More Than 100,000 Feds Owe Back Taxes – Washington Examiner

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Federal employees owed more in delinquent taxes last year than any year in the past decade, costing the Internal Revenue Service $1.4 billion in 2014.

The 113,805 civilian government employees who declined to pay all of their taxes last year would be ineligible to work for federal agencies under a House bill introduced last week that would hold officials accountable for evading taxes.

Four in 100 federal employees owed the IRS last year, according to the tax agency’s annual delinquency report released Tuesday.

Among cabinet-level agencies, the Department of Veterans Affairs had the highest rate of tax delinquency, with 15,476 of its employees evading all or part of their taxes in 2014.

VA staff collectively owed nearly $162 million in back taxes, the report said.

In the House of Representatives, more than 500 staffers together didn’t pay the IRS $6.7 million last year.

Five of the U.S. Commission on Civil Rights’ 41 staff members owe money. With just 1 percent of its employees owing the IRS, the Treasury Department had the lowest rate.

“It is disconcerting that federal civilian employees owe more than one billion dollars in back taxes,” said Rep. Jason Chaffetz, R-Utah, chairman of the House Oversight and Government Reform Committee. “These employees are not exempt from their civic responsibility to fulfill tax obligations, and those who refuse to pay what they owe should be held accountable.”

The Oversight Committee will review the Federal Employee Tax Accountability Act of 2015 during a mark-up session Wednesday.

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*VIDEO* Ted Cruz Speech At Liberty University (03/23/15)


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