IRS Commissioner John Koskinen struggled to explain on Tuesday why the IRS has been allowing illegal immigrants to illegally use Social Security numbers that don’t belong to them. Sen. Dan Coats, R-Ind. asked Koskinen to shed light on the practice during a Senate Finance Committee session focused on cybersecurity issues on Tuesday.
Via the Washington Examiner:
“What we learned is that … the IRS continues to process tax returns with false W-2 information and issue refunds as if they were routine tax returns, and say that’s not really our job,” Coats said. “We also learned the IRS ignores notifications from the Social Security Administration that a name does not match a Social Security number, and you use your own system to determine whether a number is valid.”
Koskinen replied, “What happens in these situations is someone is using a Social Security number to get a job, but they’re filing their tax return with their [taxpayer identification number].” What that means, he said, is that “they are undocumented aliens … . They’re paying taxes. It’s in everybody’s interest to have them pay the taxes they owe.”
As long as the information is being used only to fraudulently obtain jobs, Koskinen said, rather than to claim false tax returns, the agency has an interest in helping them. “The question is whether the Social Security number they’re using to get the job has been stolen. It’s not the normal identity theft situation,” he said.
About 464,000 illegally obtained Social Security numbers were targeted by hackers in a February cyber breach of the agency, while information on 330,000 taxpayers was stolen in an unrelated breach last year.
Someone should have asked Koskinen why the IRS has kept this policy secret from taxpayers, and why IRS employees are instructed not to tell taxpayers when undocumented aliens use their social security numbers to earn income. Investigative journalist Bob Segall made those shocking discoveries last October in an exclusive report for Indiana’s WTHR Eyewitness News. He also discovered that the IRS actually encourages illegal immigrants to file taxes with mismatched Social Security numbers that don’t legally belong to them.
The IRS website instructs tax preparers that undocumented workers can and should include on their tax returns any income they’ve earned using a Social Security number — even though the IRS admits non-resident aliens are not legally eligible to receive a Social Security number in the first place!
So what does the IRS do with that information? What action does the agency take when it learns someone else used your Social Security number to get work and earn a paycheck?
“We’re not allowed to say anything. Not a word,” explained an IRS whistleblower.
“You were told to ignore it?” I asked, making sure I heard correctly.
“Yes. Identity theft is a crime. It affects real people in a lot of ways. But we are not supposed to do anything. Just let it go,” she said. “I talk to these people every day who don’t understand exactly what happened to them, and it’s heartbreaking.”
Segall spoke with two IRS whistleblowers who said they were coming forward out of love for their country.