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IRS struggles to keep up amid surge in tax fraud
CNN Money ^ | June 28, 2012 | Blake Ellis

Posted on 07/05/2012 6:37:34 AM PDT by MrChips

NEW YORK (CNNMoney) -- The IRS identified roughly two million tax returns that were potentially fraudulent last year, a sharp increase that has the agency struggling to keep up.

The agency's fraud detection system identified more than one million returns as being potentially fraudulent -- up 72% from the previous year -- according to a mid-year report to Congress from the Taxpayer Advocate Service, the taxpayer watchdog arm of the IRS. (more . . . )http://money.cnn.com//2012/06/28/pf/taxes/irs-tax-fraud/index.htm?section=money_mostpopular

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(Excerpt) Read more at money.cnn.com ...


TOPICS: Society
KEYWORDS: irs; taxes; taxfraud
Any other victims, like me, out there? Please post your stories.
1 posted on 07/05/2012 6:37:44 AM PDT by MrChips
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To: MrChips
Don't worry, obamacare (*) is going to add 16,000 new IRS agents. I'm sure they'll get right on that, day 1 on the job.



(*) No, there's no provision in obamacare to add healthcare providers (in fact a startlingly high percentage are considering a career change as a result of obamacare). But I'm sure that layering big-government inefficiencies, thousands of IRS workers, millions of additional patients, etc. on top of our healthcare system, between you and your Doctor... That can all be magically done with no impact to you and yours! Your quality of care, availability of care, costs, all magically will move in the right directions, trust us! :-/
2 posted on 07/05/2012 6:45:27 AM PDT by ThunderSleeps (Stop obama now! Stop the hussein - insane agenda!)
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To: MrChips

They’re from the government and here to help you.


3 posted on 07/05/2012 6:48:19 AM PDT by immadashell
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To: MrChips

Or maybe the software is wrong?????


4 posted on 07/05/2012 6:48:41 AM PDT by O6ret
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To: MrChips

My boss said that someone filed a fradulent return under his name before he had a chance to file his own return. It has taken months to straighten it out. I don’t even want to know the fraud associated with this and bogus disability claims, etc.


5 posted on 07/05/2012 6:51:32 AM PDT by crusty old prospector
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To: MrChips

I’ve been audited five times in three years, and I just received notice that I that I am now being audited a SIXTH time. The only thing was any importance found in any of the first five audits was a bookkeeping mistake that I pointed out to the auditor. I paid, + interest + penalty. Everything else was in order.

My lawyer suggested that I keep a lower political profile, i.e. stop contributing to conservative candidates. I declined that suggestion, and now I am preparing for the sixth audit.

We are up against a powerful, corrupt, and shameless government with unlimited time, money, and resources.


6 posted on 07/05/2012 6:51:46 AM PDT by July4 (Remember the price paid for your freedom.)
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To: O6ret

No, they confirmed in my case that it was theft.


7 posted on 07/05/2012 6:53:14 AM PDT by MrChips (MrChips)
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To: MrChips
More tax fraud. Is this a surprise to anyone? The Tax Code is gotten so complex, so bloated, so full of holes and exceptions that no single person can understand it all. Not only does this represent a huge universe of opportunities for error, it also exposes broad opportunities for exploitation and abuse.

"Never attribute to malice what is adequately explained by stupidity." Or ignorance. Or misunderstanding. How much of that "fraud" are people who, with the best of intentions, filled out their tax forms wrong? Took deductions that they weren't entitled to because the instructions from the IRS are vague or incomplete?

Title 26 of the United States Code is just too damn large. It's time Congress be required to hold to a word count, just like a novelist has to keep his book within a certain size, or a magazine/newspaper article write to the "news hole".

And reduce the exceptions and loopholes. If the tax is good enough for Joe Six-Pack to pay, it's good enough for Congressman Handout to pay as well. That includes FICA. That includes health insurance withholding.

8 posted on 07/05/2012 6:55:11 AM PDT by asinclair (Quality Assurance is the process of making sure mistakes never happens.)
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To: July4

I have my Congressman working on mine for me. He has actually been very helpful. And his people are talking to the IRS, not me.


9 posted on 07/05/2012 6:56:07 AM PDT by MrChips (MrChips)
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To: asinclair

Oh, I am sure they will get health insurance withholding screwed up. We have to prevent THAT from happening. November may be our last chance.


10 posted on 07/05/2012 6:58:48 AM PDT by MrChips (MrChips)
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To: MrChips

Every year, like clockwork, I order a statement of my social security wages. One, I want to make sure that my earnings are being recorded correctly, and two, and more importantly, I want to make sure that my SSN is not being used by an illegal alien to report wages.

This year, I went onto the SSA website to order my annual statement and received a message stating that due to budget cuts, American workers are no longer going to receive copies of their social security earnings statements. That set me off big time.

Add this to my ever growing list of intolerable acts committed by our federal government. Damn sickening.


11 posted on 07/05/2012 7:04:31 AM PDT by NoKoolAidforMe (I'm clinging to my God and my guns. You can keep the change.)
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To: MrChips

What “keep up”??

Do like the Justice Department and IGNORE VOTE FRAUD, so you’re never behind.

Or like ICE and IGNORE ILLEGAL IMMIGRATION, so you’re never behind.


12 posted on 07/05/2012 7:13:14 AM PDT by G Larry (I'm under no obligation to be a passive victim!)
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To: ThunderSleeps

16,000 new IRS agents?

There are some intelligent, decent, hardworking IRS agents, but not many. The IRS culture is lazy, arrogant, and insanely politically correct.

We are dealing with agents that cannot understand fractions and have such limited vocabularies that they do not realize that the word “attorney” is related to the expense category “legal.”

One agent we encountered had a computer that routinely spit out erroneous tabulations. Accidentally or on purpose, that machine’s answers are stacked against the taxpayer. The agent is still going on her merry way overcharging the victims she audits. Wonder who gets the difference in what taxpayers REALLY owe and what she collects?


13 posted on 07/05/2012 7:13:24 AM PDT by July4 (Remember the price paid for your freedom.)
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To: MrChips

They may happily report some general numbers and statistics of tax fraud, but who would dare to report or prosecute ye olde “slave reparations” claims that have no doubt dramatically increased since Hussein’s coronation?


14 posted on 07/05/2012 7:13:34 AM PDT by treetopsandroofs (Had FDR been GOP, there would have been no World Wars, just "The Great War" and "Roosevelt's Wars".)
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To: asinclair
Don't know the exact quote, but in “Atlas Shrugged” there is a discussion about making so many laws that almost nobody can escape being a law breaker. And that is how the government will control the populace.
15 posted on 07/05/2012 7:15:27 AM PDT by gov_bean_ counter ( A good measure, pressed down, shaken together and running over...)
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To: MrChips

This could be fixed with the Fair Tax.
Pay for your stuff at a retail store, and you’re done. No need to file. No need to keep receipts. Put the IRS out of business completely...


16 posted on 07/05/2012 7:17:56 AM PDT by Little Ray (FOR the best Conservative in the Primary; AGAINST Obama in the General.)
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To: Little Ray
I guess this reply is going to put me in Homeland Security's cross-hairs, but I'm ready to vote for leaders who will collect just enough money for national defense, a few paid officials, and a handful of public buildings. States can handle everything else.
17 posted on 07/05/2012 7:29:41 AM PDT by July4 (Remember the price paid for your freedom.)
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To: MrChips; basil; txhurl; lormand; wolfcreek

This has been the top story on KLBJ in Austin all morning.

http://www.newsradioklbj.com/News/Story.aspx?ID=1733211


Austin IRS hit with audit for mismanagement and fraud, Illegals get large tax refund checks

The IRS is now the focus of a year-long audit, thanks to federal employees who are blowing the whistle. Howard Antelis is a tax examiner at the IRS’s ITIN processing center in Austin, Texas. The large, unmarked building in south Austin is where the IRS decides whether to issue an Individual Taxpayer Identification Number to the millions of illegal immigrants who apply for them. An ITIN allows undocumented workers to file tax returns and pay taxes, a legal requirement for those who earn income in the United States … even those who come to the country illegally.

But 13 Investigates discovered the ITIN system is plagued by abuse and fraud. A four-month Eyewitness News investigation documented how many illegal immigrants use ITINs to get tax credits and refunds they’re not entitled to. WTHR also exposed how millions of undocumented workers get their ITIN applications approved using phony documents.

The problems identified by 13 Investigates cost American taxpayers billions of dollars every year, according to a 2011 report from the U.S. Treasury Department’s Inspector General for Tax Administration. After seeing WTHR’s investigations, Howard contacted 13 Investigates to say the problems inside the ITIN processing center are more serious and systemic than originally reported.


18 posted on 07/05/2012 7:29:50 AM PDT by Arrowhead1952 (It's time to take out the trash in DC.)
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To: Arrowhead1952

Wow! This could be huge!


19 posted on 07/05/2012 7:35:21 AM PDT by MrChips (MrChips)
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To: July4

Ever spend any time around an IRS office? It is not something most sane people would do, I admit. However, we have a client that offices in the same building as an IRS regional office. To be there at almost any time is disturbing but to be there at morning, noon or evening would put a taxpaying citizen in orbit.

First, it is the poster child for EEO. I didn’t know human beings came in so many colors, shapes and sizes. Second, it takes a long time to get to work in the morning. They trickle in for a looong time. Third, lunch is an event not to be missed. It starts early and ends late. Then there is the mandated, er encouraged, exercise period where a few turns around the parking garage are made, very few, and a lot of talking takes place. Now, the clock has a very long 16:30 that seems to start about 15:00 but it does not go beyond 16:30. Do not be anywhere near the doors in this period if you value your safety. Finally, there is the smoke break that seems to last all day for some.

The very scary thing is that these people all have access to your SSN, your bank accounts and know exactly how much you make.


20 posted on 07/05/2012 7:39:13 AM PDT by Sequoyah101 (You've been screwed by your government.)
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To: MrChips

What this tells me is that if we could entice 2 million Americans to refuse to pay their taxes at all, we could collapse the system. If the IRS can’t even audit 2 million returns, it wouldn’t be able to actually prosecute 2 million refuseniks. And if 2 million got away with it one year, the number would probably triple the next. It would mean the end of the money pump and the re-establishment of government of, for, and by The People.

Not that I’m advocating a tax rebellion or anything. I’m just pointing out that the Cloward-Piven rope has two ends.


21 posted on 07/05/2012 7:39:36 AM PDT by IronJack (=)
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To: Little Ray

This could be fixed with the Fair Tax.
Pay for your stuff at a retail store, and you’re done. No need to file. No need to keep receipts. Put the IRS out of business completely...

Even better is take 15 percent from the under 100,000 folks and 18 percent from all others and no refunds or anything. That is the best way of all I believe. The problem with retail tax is what if nobody bought for a month? Military folks not fed? I know a bit unrealistic but could happen.


22 posted on 07/05/2012 7:42:06 AM PDT by napscoordinator
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To: July4
I’ve been audited five times in three years, and I just received notice that I that I am now being audited a SIXTH time.

I've never been audited by the IRS (Thank God) but my business and I have been subject to investigations by Customs regarding possible evasion of duties. Never once was anything found to be wrong, and yet having been on their radar once, seems we are under constant scrutiny.

My only explanation is that a typical Fed Gov't bureaucracy has the mentality of a primitive, multi-celled organism. Its sensory stimuli somehow become activated, and through simple habituation, it continues on a certain path. As a collective organization, it does not think or reason, it simply reacts to stimuli.

23 posted on 07/05/2012 7:45:37 AM PDT by PGR88
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To: Sequoyah101

I’ll tell you what I did notice at the local IRS chamber of horrors, apparently diversity only applies to the employees. White Americans were the only taxpayers making “command appearances” at the IRS offices any time I was there.


24 posted on 07/05/2012 7:49:49 AM PDT by July4 (Remember the price paid for your freedom.)
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To: PGR88
We had an interesting encounter with the local customs office. After getting a months-long runaround about what was usually a routine matter, I was contacted by a customs official who slyly told me, “We can make this hard, or we can make this easy.”

That corrupt b-——d. We didn't pay. Eventually we got what we wanted, but very much later. I guess he's wallowing around in the Caribbean on one of those generous government pensions by now.

25 posted on 07/05/2012 7:57:59 AM PDT by July4 (Remember the price paid for your freedom.)
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To: Little Ray
Don't count on it.

Elimination of a tax entirely is the only way to eliminate VALIDATION AUDITS.

26 posted on 07/05/2012 7:58:31 AM PDT by muawiyah
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To: napscoordinator

If you are going to that way, go Flat Tax. I like the Fair Tax better, but if you are going tax income make everybody pay the same rate - no “progressive” taxes. Everybody pays 18%.


27 posted on 07/05/2012 8:04:11 AM PDT by Little Ray (FOR the best Conservative in the Primary; AGAINST Obama in the General.)
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To: MrChips

More than a few folks running as outsiders would do well to show four or five of these types of fraud stories and ask, “What have you seen from ______ (sitting politican) that looks like he is working on the problems in government?”


28 posted on 07/05/2012 8:13:38 AM PDT by q_an_a (the more laws the less justice)
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To: MrChips

“The IRS identified roughly two million tax returns that were potentially fraudulent last year, a sharp increase that has the agency struggling to keep up.”

I should think all tax returns are potentially fraudulent, considering no one—including those who make a living getting around them—knows every tax law. There’s a lot of them.


29 posted on 07/05/2012 8:37:58 AM PDT by Tublecane
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To: All

There are going to be a lot of people in prison in a few years. You can be imprisoned for not paying your taxes. obamacare is a tax. Pay up or get locked up. FEMA camps? No, prison camps.


30 posted on 07/05/2012 8:54:10 AM PDT by Terry Mross ( To all my kin: Do not attempt to contact me as long as you love obama.)
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To: July4

Gee, imagine that? You don’t think whites are... targeted do you? Surely not

Excuse me while I pry my tongue from my cheek.


31 posted on 07/05/2012 10:36:01 AM PDT by Sequoyah101 (You've been screwed by your government.)
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To: gov_bean_ counter

“There’s no way to rule innocent men. The only power government has is the power to crack down on criminals. When there aren’t enough criminals, one makes them. One declares so many things to be a crime that it becomes impossible for men to live without breaking laws.”


32 posted on 07/05/2012 12:46:39 PM PDT by TurboZamboni (Looting the future to bribe the present)
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To: TurboZamboni

Thank you veryn very much.


33 posted on 07/05/2012 2:34:31 PM PDT by gov_bean_ counter ( A good measure, pressed down, shaken together and running over...)
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