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WASHINGTON — The Internal Revenue Service allowed undocumented workers to collect $4.2 billion in refundable tax credits last year, according to a new audit — almost quadruple the sum five years ago.
Although undocumented workers are not eligible for federal benefits, the report released Thursday by the Treasury inspector general for tax administration concludes that federal law is ambiguous on whether these workers qualify for a tax break based on earned income called the additional child tax credit.
The IRS said it lacks the authority to disallow the claims.
Sen. Orrin Hatch, R-Utah, ranking member of the Senate Finance Committee, said Friday that he plans to examine the refunds.
