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Billions Lost in Tax-Refund Scam
Wall Street Journal ^ | 3/30/12 | Reed Albergotti

Posted on 03/30/2012 11:30:11 AM PDT by ruralvoter

Federal authorities are struggling to crack down on what they describe as a widespread scheme that has already likely defrauded the Internal Revenue Service of billions of dollars using the stolen identities of Puerto Rican citizens.

The perpetrators of the scheme, authorities say, swipe the Social Security numbers of Puerto Rican citizens, who don't have to pay federal income tax—and are less likely to be on the IRS radar—and use their information to file fake returns. In some cases, they enlist U.S. mail carriers to intercept the refund checks that are disbursed.

The plot, which includes participants from around the U.S. and Latin America, has been around for at least five years. Prosecutors have obtained multiple convictions but none involving those believed to be among the top players in the operation, according to several people briefed on investigations into the fraud.

"What we have uncovered may very well be the tip of the iceberg," said Manhattan U.S. Attorney Preet Bharara, whose office was among the first to investigate the group. "It's a massive fraud."

(Excerpt) Read more at online.wsj.com ...


TOPICS: Crime/Corruption; Government; News/Current Events
KEYWORDS: crime; fraud; irs; tax

1 posted on 03/30/2012 11:30:17 AM PDT by ruralvoter
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To: ruralvoter

The current regime and bloated fed gov. makes it EASY to steal our monies. They just tell us they need more.


2 posted on 03/30/2012 11:36:21 AM PDT by George from New England
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To: ruralvoter

Maybe be a little more cautious in regards to refunds.


3 posted on 03/30/2012 1:17:11 PM PDT by wordsofearnest (Proper aim of giving is to put the recipient in a state where he no longer needs it. C.S. Lewis)
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