The Internal Revenue Service caught $12.1 billion in fraudulent tax returns resulting from identity theft in 2012, but the identity theft that went undetected likely amounted to $3.6 billion in tax fraud. That’s down $1.6 billion from the more than $5.2 billion in undetected fraudulent tax refunds issued in 2011, according to an audit by the… Read More
Fifty-five people were indicted last week in a massive identity theft and tax-fraud scheme, but 33 suspects are still at large, many of whom are no longer in the country. That’s part of what makes this notable: The theft of more than 2,000 identities and $7 million was carried out by foreign nationals staying in… Read More
An Alabama woman was sentenced to prison last week for identity theft she committed while working for the state, according to a news release from the Department of Justice. Chequlia Motley of Montgomery, Ala., pleaded guilty to conspiracy and aggravated identity theft in May and was sentenced Aug. 13 to serve 36 months in prison…. Read More
Tax identity theft is a growing problem nationwide and the Internal Revenue Service has stepped up its efforts to crack down on this pervasive and growing type of fraud. There are a large number of tax scams that affect consumers every year, with identity theft topping the list once again, but phishing and fraud committed… Read More
Identity theft is a significant problem for consumers nationwide throughout the year, but may become even more of a consideration during filing season. Tax identity theft is on the rise and has been for several years now, and now the federal government is trying to enlist the help of financial institutions in attempting to stamp out the problem… Read More
In just the past few years, more experts both within government agencies and outside them have noticed how troublesome instances of identity theft tax return fraud have become, but a new report suggest the Internal Revenue Service doesn’t know how widespread the issue is. The IRS recently said that it has no way of knowing… Read More
In recent years, fraudsters have been able to mine a rich vein of potential identity theft by filing bogus tax returns for other people. But while the IRS has tried to come down hard on this type of criminal, many may still be slipping through the cracks. As many as 1.5 million tax returns that… Read More
It’s a scam that marries mortgage fraud, tax fraud and identity theft. And it could land a number of tax preparers in prison for a very long time. Jonathan Brownlee, a tax preparer in Philadelphia, could face 80 years in prison and $4 million in fines for allegedly using the names of 16 people to… Read More
The FTC issued a consumer alert the other day about the latest phishing expedition: “Extra! Extra! Count on Scammers and Schemers to Follow the News.” It seems the fact that more than 130 million rebate checks will be coming our way in May, has gotten the attention of crooks, and they’re baiting their traps to catch as many of our checks as they can.
The IRS just released the twelve top scams to avoid this tax season. In the hope that it helps you save money and avoid grief, my translation of the IRS’s explanations follows.
1. Phony phone refunds being claimed as part of the special Telephone Excise Tax Refund available to most taxpayers this year. The IRS says it’s “actively investigating” tax preparers who are preparing inflated refund requests. We may not like them, but the folks who work for the IRS are not jerks. I wouldn’t want my return to look out of line in this area.