Most illegal immigrants who pay taxes have stolen someone else’s legal identity, and the IRS doesn’t do a very good job of letting those American citizens and illegal immigrants know they’re being impersonated, the tax agency’s inspector general said in a new report released Thursday.
The theft creates major problems for the American citizens and legal foreign workers whose identities are stolen, and who have to deal with explaining money they never earned.
But the IRS only manages to identify half of the potentially 1.4 million people likely affected by the fraud in 2015, the Treasury Inspector General for Tax Administration said in its report.
It’s long been a conundrum in the federal government.
The IRS knows of 2.4 million people a year who file taxes using an Individual Taxpayer Identification Number, which is generally given out to immigrants who aren’t authorized to work. But the IRS is not allowed to talk with Homeland Security to help agents identify who and where those taxpayers are.