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13 WTHR Indianapolis | Indianapolis Local News & Weather

Tax loophole investigation

Hundreds of thousands of people have watched the video explaining how undocumented workers are taking advantage of a tax loophole to claim a child tax credit. We'll post any follow-up stories on this

The national response to WTHR's "Tax Loophole" investigation has been huge. Millions of people have watched the videos that show how undocumented workers are tapping into an IRS loophole – a loophole that allows illegal immigrants to claim billions of dollars in tax credits. We'll post any follow-up stories on this page.

Part one: Tax loophole costs billions - Millions of illegal immigrants are getting a bigger tax refund than you. Eyewitness News shows a massive tax loophole that provides billions of dollars in tax credits to undocumented workers and, in many cases, people who have never stepped foot in the United States. And you are paying for it! Watch the video for part one here.

Part two: Will lawmakers act to close tax loophole for illegal immigrants? - From Indiana to Capitol Hill, thousands of people are now weighing in on a WTHR investigation exposing a tax loophole worth billions for undocumented workers. But what, if anything, can be done about it? Watch the video for part two here.

Part three: Lawmakers debate tax loophole - Members of the US House of Representatives are talking about our investigation and demanding answers. Watch the video for part three here.

Part four: IRS workers OK "phony" documents from illegal immigrants - After WTHR exposed a tax loophole that allows illegal immigrants to collect tax credits worth billions, the Internal Revenue Service pointed the finger at Congress. But IRS whistleblowers are now coming forward to say the real blame lies within. Watch the video for part four here.

Part five: IRS tackles ITIN fraud - Following a 4-month investigation by WTHR, the IRS is now taking steps that will make it more difficult for undocumented workers to get fraudulent tax credits. Watch the video for part five here.

Part six: IRS hit with audit for mismanagement and fraud - 13 Investigates has learned the tables are turned on a federal agency feared for its ability to audit taxpayers. The IRS is now the focus of a year-long audit, thanks to federal employees who are blowing the whistle. Watch the video for part six here.

Part seven: Federal report calls for changes to reduce tax fraud - A federal investigation confirms everything we uncovered about a huge tax fraud that's putting money in the bank accounts of people living and working here illegally. Because of our investigations, changes are underway to fix the costly mistakes.

Part eight: Inspector General calls IRS problems "shocking and disappointing" - During the past ten years, Treasury Inspector General for Tax Administration Russell George says he's seen a lot of audit reports. But he admits he's never seen one quite like the report his agency issued yesterday.

Part Nine: Illegal immigrants say tax credits are needed - Some illegal immigrants are speaking out to explain why the child tax credits at the center of WTHR's investigation are so important, and why Congress should not eliminate them.

Part Ten: IRS announced final rule changes prompted by WTHR investigation - 13 Investigates has learned the IRS is now taking action following an Eyewitness News investigation. The changes will reduce fraud and save taxpayers billions of dollars.

Part Eleven: Indiana lawmakers propose new law to reduce tax fraud - State legislators are looking at new rules to keep Indiana tax dollars from going to illegal immigrants who file fraudulent tax returns.

Part Twelve: IRS center that reviews info from illegal workers still plagued by "chaos" - WTHR's "Investigating the IRS" reports made national headlines, sparked Congressional debate and triggered action by the U.S. Inspector General. The year-long Eyewitness News investigation exposed the IRS giving out billions of dollars in fraudulent tax credits to undocumented workers, and it prompted the IRS to announce significant changes. A year later, IRS insiders tell 13 Investigates those changes are flawed and many of them are simply not working.