Another example of how efficient government is?

Undocumented workers received refundable tax credits totaling $4.2 billion in 2010, a dramatic rise from less than $1 billion in 2005, according to a report released on Thursday by the Treasury Department's inspector general for tax administration. The Internal Revenue Service, however, said it lacks the authority to disallow claims for the credit and a clarification of oftentimes controversial immigration policy might be needed.

At issue is use of a tax break based on earned income called the additional child tax credit, which taxpayers can claim to reduce their taxes owed, sometimes gaining them a check from Uncle Sam if their tax obligation goes below zero.

Wage earners who are not authorized to work in the United States and lack Social Security numbers can use what IRS calls individual taxpayer identification numbers, which, data show, are associated with a higher proportion of fraudulent claims on tax returns. "The payment of federal funds through this tax benefit appears to provide an additional incentive for aliens to enter, reside, and work in the United States without authorization, which contradicts federal law and policy," stated the report, dated July 7.

http://www.nationaljournal.com/budget/irs-allowed-...