Illegal immigrant tax credit rule appropriate, says IRS chief

The Trump administration's proposed rule blocking illegal immigrants and other noncitizens from receiving the refundable portion of certain federal tax credits will ensure benefits go only to those legally entitled to receive them, Social Security Administration Commissioner and Internal Revenue Service CEO Frank Bisignano said. 

Bisignano told Newsmax's "Greg Kelly Reports" that despite the criticism the proposed rule is receiving, there's a "good rationale" for it. 

The Treasury Department and IRS proposed the rule last month. If finalized, it would classify the refunded portions of four tax credits as federal public benefits under the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. Under that law, illegal immigrants are generally prohibited from receiving federal public benefits. 

The proposal applies to the child tax credit, earned income tax credit, American opportunity tax credit, and adoption tax credit, and it applies only to the portion of the credits over a taxpayer's income tax liability, which results in a refund.

"The idea that people who are here illegally can afford some of the benefits that our tax systems gives as credits and refunds to hardworking Americans who are citizens was just never right. And obviously, you're always going to have people on the other side. But this is so clear that it's appropriate," Bisignano said.