IRS TAX DEADLINE – OVER $1 BILLION IN TAX FRAUD
IRS TAX DEADLINE – OVER $1 BILLION IN TAX FRAUD
Today is the deadline to file your taxes, or to file an extension to file your taxes! Taxpayers have more to worry about filing their taxes this year because of the increase in tax fraud and identity theft. Reports show a steady increase in tax fraud, including fraudulent tax preparation schemes and postal employee theft. The identity theft schemes all have one thing in common – steal Social Security numbers and file fraudulent tax returns. The end goal for identity thieves is to file as many tax returns as possible to get as many tax refunds as possible.
The Social Security numbers of children are at risk, too. Why? Children cannot file tax returns, but identity thieves can use their Social Security numbers to claim them as a dependent. The more dependents, the greater the deduction or the return!
Most taxpayers do not learn they are an identity theft victim until they file their electronic tax return. When victims file their legitimate return, it is rejected because the IRS has already received a return for the taxpayer. Next, the IRS notifies the taxpayer that a paper return must be filed with the IRS. This is when the identity theft nightmare begins for the tax payer.
In 2011, according to the IRS, the agency detected over $1 billion in fraudulent-identification refunds. The schemes included over a quarter million returns. The number of fraud cases has tripled in the past few years. tax fraud victims may have to wait up to 18 months to get their tax refund.
Additionally, the IRS is targeting check cashing operations for fraudulent refund services. The IRS has identified several high risk cities, including: Birmingham, Alabama; Atlanta, Georgia; Chicago, Illinois; Los Angeles, California; New York, New York; Phoenix, Arizona; Tampa, Florida; and Washington, D.C..
In Alabama, taxpayers fell victim to a tax preparation company named Community Tax. The owner, Marsha Elmore, plead guilty to identity theft and filing false tax returns. The Department of Justice says Elmore filed fraudulent tax returns and directed the refunds to bank accounts under her control. Elmore was sentenced to 15 years in prison.
Has your tax return been rejected by the IRS? Have you received a notification from the IRS that you have to file a paper return because an electronic return has already been filed? If you answered yes, then you may be a victim of identity theft. Contact identity theft attorney Micah Adkins 24/7 at 1-800-263-9091 for a free case review.
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