The U.S. Department of the Treasury and Internal Revenue Service (IRS) proposed rules Wednesday to restrict access to the refunded portion of certain federal tax credits for immigrants who do not meet federal eligibility requirements.
The agencies said in a Wednesday press release that the proposed regulations would clarify that the refunded portion of four refundable tax credits is a federal public benefit under the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, or PRWORA.
Treasury Secretary Scott Bessent said in the release, "Under President Trump, the days of illegal aliens collecting taxpayer-funded benefits are over. The federal law is clear, and Treasury is enforcing it." Bessent added that the proposed regulations would protect the integrity of the tax system and ensure taxpayer-funded benefits do not go to people barred from receiving them.
IRS Chief Executive Officer Frank J. Bisignano said in the release, "Refundable tax credits, like the Earned Income Tax Credit (EITC), were enacted to help low-to-middle income American families and workers receive critical financial support." He said the proposed regulations would ensure federally funded benefits are reserved for eligible taxpayers.
