When a local tax preparer in Indianapolis decided to blow the whistle on a scam being used to funnel billions of American taxpayer dollars to illegal immigrants through an IRS tax loophole, the resulting story was met with anger and outrage.
Channel 13 WHTR’s reporter, Bob Segall, wrote a two-part expose of the scam and ran it on television on April 26, explaining how it works. The Internal Revenue Code provides for an “additional child tax credit” of up to $1,000 to help working families who have children living at home. It requires that each child live at home for at least six months out of the year. But several years ago illegal immigrants discovered a loophole that allows them to claim as many children as they want — including nieces and nephews — even if they have never stepped foot on American soil.