Wednesday, May 9, 2012

IRS field agent: Here's how illegals scam system

Insider reveals: 'The fraud has been going on for years. Business as usual'


“Angry, resigned, helpless.”

irs
That’s how one Northern California Internal Revenue Service employee described revelations that millions of illegal aliens are claiming and receiving billions of dollars in tax refunds for alleged family members in Mexico using a loophole in the tax code.

Knowledge of the scam has grown following a report by Indianapolis television station, WTHR-TV. The report documented illegal aliens filing the IRS Additional Child Tax Credit form for children – often nieces and nephews – who have never lived in the United States. To legally qualify, a child must be present in the filer’s U.S. residence for over half the year.

“We’ve seen sometimes 10 or 12 dependents, most times nieces and nephews, on these tax forms,” a tax preparer-turned-whistleblower told WTHR News. “The more you put on there, the more you get back.”

“Here’s a return right here: we’ve got a $10,300 refund for nine nieces and nephews.”

“We’re getting an $11,000 refund on this tax return. There’s seven nieces and nephews,” he said, pointing to another set of documents. “I can bring out stacks and stacks. It’s just so easy it’s ridiculous.”

Last year, the Indiana whistleblower reported dozens of cases to the IRS of undocumented workers using phony documents and false income to claim tax credits. Nothing happened.

“These were fraudulent, 100 percent fraudulent tax returns, but I got no response; absolutely none. We never heard a thing,” he said. “To me, it’s clear the IRS is letting this happen.”

Of course, this problem was not a revelation to the Northern California IRS field-office worker who viewed the report: “The fraud has been going on for years,” he told WND. “Business as usual.”

“As the video indicates the Service does nothing,” he said, asking WND not use his name to avoid reprisal.

As a result, illegal aliens who are defrauding the system not only manage to pay no federal income taxes, their abuse of the credit means they get back everything they paid into Social Security and more.

Ironically, IRS Commissioner Douglas Shulman said said last month paying taxes should be considered one of the pathways to citizenship for illegal aliens.

Based on what comes across his desk, he has seen the problem burgeon in tax returns filed by Spanish-language tax preparers. Calling them “the enablers and catalyst of this fraud,” the Northern California field-office agent noted their clients are more comfortable working with preparers who speak their language. The preparers educate their clients about greater returns they can receive the following year if they qualify family members for the Additional Child Tax Credit refund. It’s a win-win-lose – the client learns how to get more money back from the IRS, the preparer generates good will and repeat business, and the U.S. taxpayers get soaked. Knowledge of the scam then spreads by word of mouth.

While agreeing the Additional Child Tax Credit was a major problem, he said it should not be the primary focus.

“When reviewing the big picture of this fraud, always remember and never forget that it is the ITIN that opens the portal to obtaining the credit,” he said.

The ITIN – or Individual Taxpayer Identification Number – is a nine-digit tax-processing number assigned by the IRS to individuals who are obligated to file a federal tax return but do not have or are not eligible for a Social Security Number. While an ITIN does not confer the right to work in the U.S. to undocumented aliens, it is used by them so U.S. employers can meet withholding requirements.

The requirements for obtaining the ITIN for a worker includes submitting original official documentation from the country of origin to the IRS processing center in Austin, Texas, where there is a fraud unit, for validation. The problem arises when the worker also decides to obtain ITINs for his children, nieces and nephews. At this point, the document checking is far less rigorous.

While the application for dependents’ ITIN can be sent to Austin as well, it is not required. This process can be done across the counter at IRS field offices, and often is, because applicants prefer to have their original documents returned to them after the brief review rather than risk having them lost in the mail.

“Little or no formal training is given to field offices in reviewing Mexican birth certificates,” the California IRS employee told WND. “There’s a lot of variation in Mexico’s official documents. For an ITIN to be issued for dependents, in addition to a birth certificate, original U.S. medical records or letters from school must be presented. Often it is hard to determine if the document is an original or a copy.”

Most Hispanics have two surnames and Hispanic females’ second surname usually changes on marriage, creating a confusing array of family connections to sort through.

“Determining if an individual is actually a nephew or niece at times is difficult. Frankly, I think a lot of these nephews we’re certifying are cousins,” he said.

U.S. tax law allows the claiming of cousins as dependents, but the requirements are stricter than for claiming elderly parents, children, nieces or nephews. The applicant must be responsible for 100 percent of the cousin’s support for the entire year.

“Validating elderly parents as dependents has it’s own problems,” he said. “They could be decedents, we don’t know if they’re still alive. We accept voter ID cards that have expired as proof of the relationship to the applicant.”

While dependent elderly parents don’t qualify for payouts under the Additional Child Tax Credit, they do qualify single illegal aliens to claim Head of Household filing status which conveys significant tax benefits.

Asked if a voter-ID card that had expired in 2004 would be considered an acceptable document to qualify an elderly parent living in Mexico, the California field-office agent answered, “Yes.”

“I do catch some fraud,” he said. “If we see an application for the Additional Child Tax Credit with a stand alone W-7 application for an ITIN, that’s a red flag, and we will usually catch it and go over the rules. But due to time and policy constraints, many applications from the field go forward without further review. Field offices can flag an application for suspense or rejection, but it takes more time and a referral form. The average time to review an application is about seven to nine minutes.”

“If someone already has an ITIN we have no way of determining at our level if they qualify for the credit unless we go through extensive inquiry,” he said. “We don’t know if the claimed dependents who now have ITIN numbers are actually present in the U.S. We are instructed at the field office that we are not the ITIN police.”

As for the IRS, it claims its hands are tied. In a statement to WTHR News, following its exposé, the agency responded:
    “The law has been clear for over a decade that eligibility for these credits does not depend on work authorization status or the type of taxpayer identification number used. Any suggestion that the IRS shouldn’t be paying out these credits under current law to ITIN holders is simply incorrect. The IRS administers the law impartially and applies it as it is written. If the law were changed, the IRS would change its programs accordingly.
    “The IRS disagrees with TIGTA’s (inspector general) recommendation on requiring additional documentation to verify child-credit claims. As TIGTA acknowledges in this report, the IRS does not currently have the legal authority to verify and disallow the Child Tax Credit and the Additional Child Tax Credit during return processing simply because of the lack of documentation.
    “The IRS has procedures in place specifically for the evaluation of questionable credit claims early in the processing stream and prior to issuance of a refund. The IRS continues to work to refine and improve our processes.”

Will Obama Leave The US In Shambles If He Loses The Election?


Barack Obama speech hand 2 SC Will Obama Leave the US in Shambles if He Loses the Election?
Just like a spoiled child who doesn’t know the word “NO”, I believe that if Obama loses the upcoming election, he and his communist regime will do everything in their lame-duck power to destroy America to a point of no return for the incoming President.

New information on five treaties that are currently being negotiated by Hillary Clinton and other members of the regime’s state department could spell grave danger to the soverignty of the United States of America.

It is imperative that We the People keep the pressure up on our Senators to NOT ratify these treaties. This regime is selling America out to the United Nations, therefore giving them the power to override the US Constitution. If these treaties are ratified, any future President’s hands would be tied. This would surely be Obama’s last laugh at OUR country’s expense.

On May 1st, 2012 (mayday), Obama signed another executive order declaring international law for the United States which can be viewed herehttp://fromthetrenchesworldreport.com/obama-signs-executive-order-declaring-international-law-for-the-united-states/14439

As I said, just like a spoiled child, if Obama can’t have the United States to do with what he wants, NO ONE WILL!  Please stay safe, and be aware of your surroundings.
Op-ed:
Censorship is alive and well on the internet
By: Diane Sori

Censorship in this day and age of Barack Hussein Obama is alive and well on the internet, especially on the social media network known as Facebook.  You post something derogatory about Obama or his inner circle...they censor you.  You post the TRUTH about Obama’s failed policies...they censor you.  You post something against islam, muslims, or sharia law...they censor you.  You post support for our military or post condemnation for the jihadists or heaven forbid the ILLEGALS...they censor you.  You get my drift.

And what do I mean by censoring...I mean Facebook sends you little messages that your posts and/or comments are ‘spammy’ or irrelevant and they will NOT allow them to be posted.  And after receiving a certain number of those little messages Facebook sends you a warning saying that if you don’t cease and desist they will put you in a temporary time-out OR they just go ahead and outright ban you from posting, commenting, or even accessing your account with NO warning whatsoever.  I know, I’ve been there, and I guarantee I’ll be there again.

Now who are these high and mighty persons who set themselves up as our judge and jury...none other than Barack Hussein Obama’s libertard friends headed by Facebook’s daddy himself, and you all know who I mean by that.  But if some of you have had ‘brain freeze’ this past year or so and can’t put two and two together, I’ll tell you that it’s the ‘young man’ who met with Obama last year to stack the Facebook deck in his favor and against any of his opposition...that ‘young man.’

Now I’m NOT saying that that ‘young man’ himself does this censoring as he is too high and mighty to bother with us peons, but rest assured that that ‘young man’ has assembled a ‘special’ team for the purpose of trolling and infiltrating our conservative sites, and then in their infinite wisdom they decide what ’they’ consider to be objectionable posts based on the moral, political, military, and social agendas they have been instructed, or should I say ordered, to have.

Case in point: a few months ago I was banned from Facebook because I dared to post the picture of what those muslim bastards did to one of our soldiers in Mogadishu.  They told me that ‘somebody’ (yeah, right) complained that this picture, which, BTW, had been all over the internet, TV, and newspapers for years, offended them because ‘they’ felt we had no business being over there and these men got what they deserved.

And we all know who ‘they’ are now don’t we.

And of course the ‘special’ team agreed with that particular ‘somebody’ because Obama now pulls Facebook's strings, and Obama doesn't want any criticism of his muslim brethren, so banned I was.  But here’s the kicker in my particular case...they banned me for X-number of days on the grounds of posting pornography because the dead soldiers blurred genitalia were insignificantly visible in a photo that had been posted all over the world! 
 
They didn’t care about OUR soldier being tortured, killed, mutilated, and dragged through the streets as some sort of muslim trophy prize; all they cared about was a blurred insignificant partial image of a small glimpse of a dead man’s genitalia.

That picture Facebook considered pornographic and worth banning me for, but the pedophilia sites all over Facebook are not!

So it appears that now the special team of Facebook censors can and will dictate to us patriotic Americans what we can and cannot post according to where their whims blow on any given day or according to orders that come down to them from above, meaning the White House.

Now is this Facebook issue really that important in the scope of issues our country is facing right now...you know what...it is!  And the why is because Facebook is on the information superhighway and as such is viewed by millions and million of people every day.  It’s one of just a few mediums left open to us members of the liberal opposition, you know us conservatives, as a way to get OUR message out because we know damn well that our message is NOT one the media cares to disseminate.

Also remember that those who control the information superhighway control us all.  Control the information given to the masses...you control the masses; control the opposition...you’ve negated the opposition; it really is that simple.

And I, for one, refuse to be negated, controlled or silenced.  So I press on and let the Facebook peccadillos fall where they may for as far as I’m concerned free speech is still my right here in America...it is unless Barack Hussein Obama manages to usurp another election that is.


Student loan plan fails in the Senate
The Senate failed Tuesday to advance a bill to keep federally subsidized college student loan rates lower for another year, prolonging debate on an issue that has emerged as an election-year flashpoint.

A protester, dressed as the "Master of Degrees," holds a ball and chain representing his college loan debt during a protest last October in D.C. (Jacquelyn Martin - AP) 
 
On a party-line vote, senators voted 52 to 45, short of the 60 votes necessary to proceed to debate on the bill. There is no clear path forward at the moment for lawmakers, who have until July 1 to reauthorize lower rates for roughly 7 million borrowers who would otherwise see rates on subsidized student loans jump from 3.4 to 6.8 percent.

Democrats and Republicans agree that the loan rates should remain low, but — as with most noncontroversial issues these days — lawmakers disagree on how to pay for the plan.

The issue is of growing concern among younger voters and their parents and has dominated the campaign trail in recent weeks. Using his campaign bully pulpit, President Obama has pushed Congress to quickly approve an extension of the lower rates for another year, and presumptive Republican presidential nominee Mitt Romney has done the same.

A House Republican plan approved in late April would pay for the lower rates by cutting almost $6 billion from a preventative health-care fund estbalished in the Democrats’ health care reform bill.

Democrats pushed a plan to pay for the extension by ending a tax break that allows operators of some businesses with three or fewer shareholders to avoid paying payroll taxes by labeling some of their income as business profits rather than wages.

In a statement, the White House said it was “extremely disappointing” that Republicans voted against keeping loan rates low in favor of protecting people who take advantage of the tax loophole.

Senate Majority Leader Harry M. Reid (D-Nev.) said the voted showed that Republicans are “more interested still in obstructionism rather than progress” and said Democrats would not slash the health fund, which pays for cancer screenings, diabetes prevention and other basic medical needs.

Senate Minority Leader Mitch McConnell (R-Ky.) called the issue a ”manufactured crisis,” insisting Republicans also oppose allowing loan rates to rise.

“The best way to resolve this would be to sit down and discuss the way to resolve the differences between the House and Senate and pass it,” he said.

An an event earlier Tuesday, Sen. Jack Reed (D-R.I.) and Sens. Sherrod Brown (D-Ohio) and Tom Harkin (D-Iowa) were joined by dozens of college students who support extending the lower rates.

Harkin insisted that Democrats offered Republicans a chance to vote on their version of the measure alongside the Democratic one, if they would agree to allow the Senate to proceed to a full debate on the bill. But Harkin charged that GOP leaders rejected that proffer because they did not want to force their own members to vote to eliminate the preventative care fund.

“We have a serious offer on the table — to close a tax loophole ... that’s allowing a lot of people to avoid paying their fair share for social security and Medicare,” he said.

Republicans have noted that Democrats had signaled a willingness to cut the same preventative care fund during negotiations over how to pay for extending the payroll tax vote. But Harkin said there’s a difference between reducing the fund, which Democrats had said could be acceptable, and eliminating it, as Republicans now propose. “It’s the difference between taking a couple of pints of your blood or taking all of your blood,” he said.

But asked by reporters if negotiations are underway over a way to pay for the student loan reduction that would be acceptable to both Republicans and Democrats, the group said only that they are willing to listen to ideas and that the Democratic proposal is reasonable.

“We’re still open to sensible proposals to pay for this,” Reed said.

U.S. official upset over leak about double agent in bomb plot

By the CNN Wire Staff

Washington (CNN) -- The chairman of the U.S. House Homeland Security Committee expressed dismay that someone leaked information about a double agent who infiltrated al Qaeda and helped foil a plot to blow up a U.S.-bound plane.

"It's really, to me, unfortunate that this has gotten out, because this could really interfere with operations overseas," Rep. Peter King of New York told CNN's Anderson Cooper on Tuesday. "My understanding is a major investigation is going to be launched because of this."

The double agent, who volunteered as a suicide bomber for the terrorist group, was actually working as an intelligence agent for Saudi Arabia, a source in the region familiar with the operation told CNN.

The man left Yemen, traveled through the United Arab Emirates and gave the bomb and information about al Qaeda in the Arabian Peninsula to the CIA, Saudi intelligence and other foreign intelligence agencies, the source said.

The agent works for Saudi intelligence, which has cooperated with the CIA for years, the source said.
"Indeed, we always were the ones managing him," the source told CNN.

The account of what happened was first reported by The New York Times on Tuesday.

Officials cited by the Times would not identify the man, but said he is safe in Saudi Arabia.

 
'Chilling tactics' in terror devices
See the report here:
 
The bomb, which was intended to pass undetected through airport security, was given to the FBI, which was poring over it, the newspaper reported.

Citing a senior American official, the Times described the device as sewn into "custom fit" underwear and able to be detonated in two ways. That redundancy may have been to avoid a repeat of what happened in 2009 when an attempt to blow up a jet over Detroit failed because the bomb did not detonate.

The primary charge in the latest device was a high-grade military explosive that the Times, quoting an official, said "undoubtedly would have brought down an aircraft."

A senior administration official told CNN that officials were debating whether to release photographs of the device to law enforcement agencies.

On one side of the argument, Transportation Safety Administration screeners and law enforcement might more easily identify any similar devices made as part of the same plot, the official said.

But officials were reluctant to do so out of concern that the photographs would be leaked to the news media and that the would-be bombers would learn what law enforcement knows -- and might not know -- about the bomb's workings.

The news of the double agent might explain comments made earlier Tuesday by John Brennan, the chief White House counterterrorism adviser, who told ABC's "Good Morning America" that U.S. officials were confident they were in control of the situation leading up to the seizure of the improvised explosive device, or IED.

Brennan said that officials believe redundant security systems would have prevented any attempt at bombing a flight from succeeding, but analysts were studying the device to see whether security procedures should be adjusted.

"We're trying to make sure that we take the measures that we need to prevent any other type of IED, similarly constructed, from getting through security procedures," Brennan said.

The device investigators were studying is more sophisticated than previous ones and represents a disconcerting advance in al Qaeda bomb-making techniques, officials said Tuesday.

"It is a device similar to the underwear bomber of 2009, but an evolution to that," Homeland Security Secretary Janet Napolitano said.

The device never posed an immediate danger to air travel or the United States, she said.

But lawmakers said more such devices may exist, and House Intelligence Committee chairman Mike Rogers, R-Michigan, said the release of information about the device could complicate an effort to seal the long-term threat.

"If something bad happens because it was leaked too early, that's a catastrophe and it's also a crime," Rogers told CNN.

News about the device became public on Monday, about two weeks after U.S. intelligence agents thwarted the plot after receiving a tip from Saudi Arabia, a source familiar with the operation said.

Information from the double agent proved key to a CIA drone strike Sunday in Yemen that killed Fahd al Quso, 37, a senior operative of al Qaeda in the Arabian Peninsula. Al-Quso was a suspect in the 2000 bombing of the USS Cole in Yemen. Western officials describe AQAP as al Qaeda's most dangerous affiliate.

Former FBI special agent Ali Soufan, who interrogated al Quso for his role in the Cole bombing, called the coordinated seizure of the bomb and attack on al Quso as "really a brilliant operation."

"This is as good as it gets in intelligence operations," he said.

"Now we now what al Qaeda's planning to do," he said.

Rogers said the device underscores al Qaeda's continuing efforts to carry out terrorist attacks.

"This is a device that was more sophisticated, had some fail-safes built into it, and it was something that concerns us because it tells us that they brought some very capable people together to build something," he said.

A Department of Homeland Security spokesman said authorities have "no specific, credible information regarding an active terrorist plot against the U.S. at this time."

AQAP has been responsible for two of the most audacious attempts to target the United States in recent years: the attempted Christmas 2009 bombing and a 2010 attempt to load bombs hidden inside printer cartridges onto cargo planes headed for Chicago. In both cases, U.S. authorities believe the bombs were built by Ibrahim al-Asiri. Both devices contained PETN, a white, powdery explosive that conventional "single-beam" X-ray machines are rarely able to detect.

"We are not ready to say the threat stream is over," a U.S. official told CNN. "We believe external plotting continues."

The investigation involves a number of countries and is "ongoing," King said on CNN's "Starting Point."

Yemen's government has been fighting al Qaeda in the Arabian Peninsula for years with mixed results.

Yemeni authorities appeared miffed by the revelations of the foiled plot, saying that Washington had shared no information with them.

"Yemen has been a key ally to the United States when it comes to fighting terror and cooperates in every way possible," said a senior intelligence official in Yemen who asked not to be named because of the sensitivity of the situation. "It's very sad to know that the United States did not share such critical intelligence information with Yemen."