Posted by: Ann Corcoran | August 3, 2012

IRS: Billions in refunds sent out to scammers

If you didn’t see this story yesterday, I’m sorry to make you want to cry this morning.  Wait until you read this.  The IRS has sent billions of your dollars out to identity thieves and the most shocking part is that thousands of returns sent from the same address were never caught!

Here is the story from CNBC:

The IRS is paying out billions of dollars in fraudulent tax refunds to identity thieves; a problem that the tax service’s inspector general told CNBC is a “growing problem” involving numbers that are increasing “exponentially.”

In a new report to be issued Thursday, the inspector general for the IRS says that tax thieves are stealing the identities of taxpayers and then filing bogus returns on their behalf and collecting fraudulent refunds as a result.

The inspector general estimates that the IRS could issue as much as $21 billion in fraudulent tax refunds over the next five years.

The scam is so rampant that thieves are apparently sending in false returns in bulk without even bothering to change the mailing address on the returns. The inspector general said it found one residential address in Lansing, Michigan that was the source of an astonishing 2,137 tax returns, and to which the IRS directed more than $3.3 million in potentially fraudulent refunds.

Redistributing your wealth to Chicago!

In another case, a single residential address in Chicago was the source of 765 tax returns, generating more than $900,000 in potentially fraudulent refunds, the report said.

Just wait until the IRS has its incompetent hands in your healthcare—they were “grilled” just yesterday on that role.

I’d like to know who these perpetrators are, if any of you see a follow-up story on someone they catch, let me know.

Readers, I added a new category—crimes—because we are seeing more and more stories involving fraud and crime.


Responses

  1. […] week we reported that billions in fraudulent refunds were being sent out to criminals using stolen Social Security […]


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