Senator Dan Coats (R-Ind.) today supported legislation to close a loophole that currently allows illegal immigrants to claim the refundable child tax credit. The bill (S. 3083), introduced by Senators Marco Rubio (R-Fla.) and John Thune (R-S.D.), would require individuals who are legally living and working in the United States but are not U.S. citizens to submit valid immigration documents for the taxpayer and the taxpayer's child to the IRS to claim the refundable tax credit.
"It is outrageous that American taxpayers are subsidizing tax credit refunds going to illegal immigrants," said Coats. "When individuals game the system with blatant disregard to our laws, we all suffer. This bill protects taxpayer dollars and provides a sensible solution to address this fraudulent activity."
Tax fraud involving the refundable child tax credit is a growing problem in Indiana and across the nation. A July 2011 report by the Treasury Department's Inspector General for Tax Administration found that illegal immigrants received $4.2 billion in child tax credits in 2010.