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Subscribe to RSSThe Internal Revenue Service is grappling with a surge in identity theft-based tax fraud as crooks take advantage of web-based resources including electronic filing.
Identity theft cases, in which criminals obtain living or deceased people’s names and Social Security numbers to defraud the government, ranked No. 1 on an annual “Dirty Dozen” list of tax scams the agency released Thursday. The IRS called ID theft one of the most complex threats it handles.
The IRS estimates 404,000 people were victimized by identity theft tax fraud from mid-2009 to the end of 2011.
“We are seeing growth in this area. There’s no way around it,” said Terry Lemons, IRS director of communications. “But I also think that we’ve gotten better at detecting it.”
The IRS said it stopped nearly 262,000 fake returns based on identity theft from being processed in 2011, preventing nearly $1.5 billion in refunds from going to criminals. That is more than a fivefold increase from 2010, when the agency stopped about 49,000 fake returns seeking $247 million in fraudulent refunds.
The IRS said it has no way of knowing how much in fraudulent refunds made it through the system undetected.
Experts say this type of fraud has increased thanks in part to the Internet. The Web has made it easier for honest people to file their tax returns -- and for crooks to file fake returns electronically. The IRS has been on a major push to encourage people to file electronically.
“That was probably one of the biggest boons for the bad guys,” said Jay Foley, a partner with ID Theft Info Source and an identity theft expert.
With more than 100 million income tax refunds to process each year, the IRS concedes it will never be able to quell such tax fraud completely.
“The IRS cannot stop all identity theft. However, we are committed to continuing to improve our programs,” Steven T. Miller, the deputy commissioner for services and enforcement at the IRS, said in written congressional testimony in November.
The agency has added new filters to screen for potential identity theft tax fraud and is working harder to help victims get their rightful refunds.
In late January, the IRS and Justice Department announced a nationwide sweep of arrests, indictments and other actions against 105 suspected perpetrators of the crime in 23 states.
In its testimony to Congress, the IRS said it had initiated 276 investigations into identify theft tax fraud in fiscal 2011, up from 224 the previous year.
The IRS is under tremendous pressure to get taxpayers their refunds as quickly as possible while also accurately screening for fakes. That’s complex because people's lives are complicated. Many of the things that might flag a return as fraudulent -- such as a change in job, mailing address or name -- are legitimate.
The new IRS filters mean that more people’s tax refunds will get extra screening before they go out, Lemons said.
“I think for the vast majority of taxpayers, they’re not going to see any difference,” he said. “There will be some people who end up having some delays.”
ID theft tax fraud tends to occur early in the tax season as criminals try to file before legitimate taxpayers. (For tips on how to prevent and identify identity-based tax fraud, check the guide posted on the IRS website.)
Despite the agency's efforts, Foley, the identity theft expert, expects the problem to get worse before it gets better. That’s because criminals keep finding new ways to evade IRS systems.
Still, he thinks the IRS is doing the best it can given its limitations. People want their legitimate tax refunds as fast as possible, but if the IRS doesn’t catch the fraud before the refund goes out, the agency may not even realize fraud has occurred until long after, when the real taxpayer goes to file a return.
“You can’t fix something until you know something is broke,” he said.
The crime appears to have surged in popularity rapidly.
In Florida, NBC television affiliate WFLA and The Tampa Tribune reported identity theft tax fraud had became so widespread that some people were offering classes in how to commit the crime.
The station's investigation said the criminals dubbed the process “TurboTax” after the popular online software for filing returns.
Julie Miller, a spokeswoman for TurboTax’s parent company, Intuit, said in an email that the company had amped up its own fraud prevention efforts over the past year. She declined to give details for fear of tipping off criminals.
In many cases, the fraud begins when a criminal steals someone's name and Social Security number, and then uses them as a basis to create fake a return that ensures a hefty refund. The refund is sent to an address specified by the fraudster.
Another method involves getting the names, addresses and Social Security numbers of recently deceased people from websites such as Ancestry.com, which are meant to help people find their long-lost relatives.
A spokeswoman for Ancestry.com, Heather Erickson, said the company didn’t notice anything unusual. But around December, after being alerted to the problem, the website stopped showing Social Security numbers for anyone who had died in the past 10 years.
Related:
Cheat on taxes? Never! Or, as much as possible
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I am afraid that if they steal my identity all they will get are tax BILLS. Go just try. LOL.
Good point - no one will want to claim your tax liability. Monitor your withholding, earnings, and tax bracket carefully to make sure you always owe some taxes at the end of the year, instead of setting yourself up for a whopping refund.
A big fat refund hanging on your record is a sweet target for thieves (and a lousy way to save money.) Don't intentionally overpay taxes to establish a savings account.
They found 49,000 fake returns...
And are investigating ONLY 247 cases...?
Time to start putting these crooks in prison, but that would
probably cost more than the fraud comited..lol
I would be more than willing to wait an extra week or two for my refund if it helped to prevent fraud from occurring. Of course other government agencies are making this type of fraud easier to commit. Medicare insist on using a person's social security number as their Medicare ID number. This ensures that everyone on Medicare is carrying around their Social Security number in their wallet and having it listed on numerous documents, making it far easier for a crook to get a hold of by doing something as simple as picking the pocket of anyone who is over 65 or disabled. The same goes for the military with having the persons Social Security number as a person's military ID number. It is time to stop using a person's Social Security number for anything other than what it as intended for instead of as some universal ID number so that there are fewer opportunities for it to be stolen.
And yet the brain dead government keeps encouraging aliens to come here illegally so they can steal more people's identity and wreck the credit of even more innocent American citizens.
This government has got to go and be replaced with one that respects the rule of law.
The current administration (democrats) feels that they will find a way to grant citizenship to all the illegals and in return they will garner a lot of votes.
LOL
This country (US) doesn't care about identity theft! If it did then ALL illegal aliens would be rounded up and kicked out immediately.
We could get rid of at least half of all identity theft and tax fraud that way.
The current administration (democrats) feels that they will find a way to grant citizenship to all the illegals and in return they will garner a lot of votes.
Newt is not a Democrat and neither is Mitt both of which have pandered to that element not Democrats. Better to check facts not poison emails before posting
Flat tax and no IRS is the way to go but the 1% would never let that happen
I think they should start investigating Rick Santorum new tax returns for fraud.
We need to get rid of the IRS completely. The tax code is so difficult that MOST people don't understand it and those who understand the system (1%) knows how to take advantage of every deduction and not pay their fair share. By stealing other peoples identity and filing false income tax is their(99%) way of tax deduction and not paying their fair share of taxes.
We must make it very simple and fair, FLAT TAX RATE.
REQUIRED: Your accountant must file taxes electronically.
So, if you want any professional to do your taxes, and good luck with all the tax breaks if you are entitled to them and don't hire one, you have the risk of your personal information being hacked.
Oh, but no! Electronic banking is the wave of the future! Get rid of the Post Office! No junk mail, just my Social Security number in criminal hands! Yippie!
JS in SD:
It used to be that way. I still have my original SS card and it says NOT TO BE USED FOR IDENTIFICATION.
What goes unstated in this article is the billions the IRS pays out EVERY year in Earned Income Tax credits to ILLEGALS who come here, get a tax ID #, and get back thousands for each CHILD they have (born here or not).
Say what you want about the 'evil Pubs', but they TRIED to attach a provision to the legislation that extended the unemployment benefits and maintained the 2% cut in payroll tax deductions which made it illegal for that to be paid to NON citizens, and it got SQUASHED by the Dems.
St THAT at least is a "draw" for illegals to come here that the DEMS want to keep--at the EXPENSE of American CITIZENS.
There is a lot of broke somethings right now, and the criminal elements aided by corrupt politicans are fighting like hell to keep it that way.
The Fair Tax would end all this. No IRS. No filing. No theft. And all these ne'er do wells would be PAYING taxes. No matter if they are citizens or not. This is so easy to fix. I just don't understand why everyone is not demanding we have the Fair Tax. Our revenue collection system is as outdated as the horse and buggy. This would be the single most important factor in a quick recovery for our fiscal woes. Demand the Fair Tax!
It is just our too big to fail Federal IRS that will feed the criminals whille claiming they don't have enough money to opperate...
If we get rid of the fraud we would have enough money to support the true needs of this country.
I tough illegals don't want, not need, don't speak english. What is your point getalifevirigina.
Let's don't brake their economies'countries and they will stay on their countries. Who want to clean our toilets ? who want to clean our elderly stinky butt ?
In Fla, it wasn't the "illegals spamming the system.
I don't file electronically because it is processed by third party software. I think the IRS should create their own software and secure filing portals.
Too many people are witholding too much as a way of saving instead of witholding the minimum to cover their tax liability.
Why give the IRS money all year and then demand the excess back the following year?
It would be a whole lot simpler if Congress would institute a lower graduated flat tax rate, no deductions and eliminate all the paperwork.
We don't have the fair tax because it's actually not really "fair". If you are making $15,000 a year, paying even a small percentage of your pay is a really big hit to your ability to keep a roof over your head and food in your mouth. But if you are making $1.5 million, it might be more in terms of dollars, but you still have lots left over to have a pretty comfortable lifestyle.
We can still do a graduated tax but eliminate all deductions. Whatever comes out of your paycheck is your tax. No returns, filings further tax bills or refunds. That is simple.
Doesn't really matter if you owe taxes or not.... unless they are garnishing your tax refunds.
The people submitting a fraudulent form just make up whatever they want and just claim they paid money it. The IRS does not actually check to see if the W2 actually exists. If they audit at least the W2 on submit it would stop most this but I suspect there is some reason they can't. I
If they are paying money out without verifying the W2s and 1099R they are not doing their job properly.
Duh.....what about "cross checking" folks Social Security numbers, "reported" deaths, previous addresses, etc., simply called "verification" checks prior to issuing that return check ?
Nah, that is too hard to do with Information Technology systems in use today. Wait a minute....
Yep, that $ 3,700,000,000 computer system must have been taxpayer $$$ down the toilet.
The Internal Revenue Service Commissioner Mark W. Everson needs to be immediately replaced since he cannot do his dad gum job.
Wait another minute, he will probably be given a pay raise and sent to another Federal Job. I wonder how that would be recorded: "Job Saved" or "Job Created".
Ido
No you don't!!
If I know anything about a person (a fellow employee, e.g. who I have no personal relationship w/ other than to chat w/ once a week) I can get his Social Security number from numerous sources just by mailing in forged requests for unrelated information. Your SS# is not private. It appears on thousands of documents that have nothing to do w/ the IRS. The IRS suggests that you not carry around your SS# in your wallet or purse, in case of loss, do they expect me to leave Medicare Card at home -- its got the same #. There should be different #s. The problem is the IRS computers -- are antiquated. They should have the information already plugged in to spot a fraudulent return in a second. You should not be able to get a 10K refund when you have made only 1K in estimated payments and the W2 from your employer shows earnings of $25K. A short story: A couple of years I hand wrote my 1040 showing SS receipts of $21K which computed out to $18K as taxable income as correctly shown on the return. When an idiot at the IRS punched my return into the computer he saw the $21K to be $41K. My hand written "2" was a bit fancy and written higher than the "1" and admittedly the two digits could be seen as running together to make a "4" BUT if you run a "2" and a "1" together to make a "4" you get "4" not "41", that is impossible. Also, I could not have gotten $41K in SS benefits as no one can get $41K -- SS maxes out at about $23K and why in the adjacent block would I have shown taxable income of $18K Anyway, no one having looked at the above absurdities, I got a notice from the IRS that I owed tax on an additional $20K ($41K minus $21K). Sorry to take so long - But, now to the point. I wrote the IRS, in reply, and sent them a copy of the SS form (which they tell you not to send w/ your return) showing SS benefits received by me were 21K. The IRS did not act despite what was in front of its face and could have been resolved the matter in 3 mins. (I kept getting letters "we are still investigating, get back to you in 45 days" every 45 days) Nevertheless, "Enforcement" got involved and was threatening to attach my bank accounts and lien my property. Since writing the IRS didn't seem to matter and I now had "Enforcement" on my back, I got on the phone w/ the IRS and said "look, you got the wrong SS $ figure plugged in for my tax return, I sent you the SS form (I also sent them 12 mons. of bank statements showing automatic deposits equaling $21K) you can forget about trying to find the paper just hit your computer and see how much I actually received from SS and put an end to this nightmare". I was shocked at the reply -- "Sorry sir, we do not receive that information from SS, we go by what is on your tax return which shows $41K." "Look at my return" -- "I can't do that sir, all I have is what's in front of me on the computer". There is no connection between the IRS computers and those of SS? If this is illustrious it is no wonder the IRS is open to fraud -- leave the store, unattended, w/ the cash register open and don't expect someone to steal your money -- give me a break. If, however, someone tries to include a vet. bill in medical deductions the IRS throws the book at him -- the IRS watches that stuff like hawks. The IRS should get a new computer system -- set up separate #s for SS and Fed Taxation -- use our money to correct a totally inept system instead of auditing the corner grocer. BTW: my little tax problem took 1 1/4 years, and a pile of "were are still investigating" 45 day letters -- and I cooperated more than most.
It's a funny thing that this article would be on MSNBC today. I work at a small hometown bank. Today an Hispanic male came in with a $2985.00 tax return check. He is not a bank customer but he works at local cannery that does bank with us and I have waited on him before. Today he wanted to cash his tax refund check. I asked him for his ID plus I needed to see his Social Security card. He said he'd be back. Right around closing time he came back in with "his" Social Security card. The address on his drivers license did not match the address on his tax refund check and "his" Social Security card was a fake and a bad one at that, I did not cash his tax refund check. It blew me away that our government gave him a tax refund check. I live in small town USA and I caught that his Social Security card was a fake.
The ease and large scope of electronic fraud causes a massive cost increase just trying to keep funds going to the right place. The theives take more, easier. They tell us it will be safer over time, you can bet it will be at our cost.
Wow, the IRS is patting themselves on the back for catching some of these crooks but say they cannot possibly catch all of them. Baloney.
What about the 41 Obama White House Staffers and some of their aides, in addition to the HUNDREDS of "elite" elected Congressional members and the HUNDREDS of Government workers who have failed to pay their BACK IRS TAXES and the IRS has information on these crooks and REFUSE to take them to FEDERAL COURT ?
If someone in the beltway had the gall to take our Cabinet Members to task of cleaning up the Fraud, Waste, and Abuse within their area of responsibility we wouldn't see the continuous 3-Ring Circus going on concerning our budget.
The first IRS recommendation is "Don’t carry your Social Security card or any document(s) with your SSN on it." The Medicare system uses one's SSN as their medicare number and that card is not only essential to have with oneself at all times, but scanned at every medical office and on every medical document/claim one has. Thus one Federal agency has ensured another Federal agency will spend excessive amounts of money fighting fraud abetted by the first Federal Agency, and the taxpayer loses.
Its not just Medicare, the military uses SS as well as the VA system.
Schools also use SSN as a way to prove you are not a criminal coming into schools. And yes it is NOT a very secure place where they put the form they use with your SSN on it.
@snook - The military's new ID cards don't have the SSN on them any more. However, almost everything we do requires the SSN. It's just too convenient for its own good.
I was in the service way back when and my number was not my SS number but it is too easy to get a hold of now days. Lots of places need it to do background checks etc.
We need to switch to a biometric SSN. How about one based on ones retina? There shouldn't be any data in your eye that insurance companies could use against you. Start thinking about solutions instead of complaining all the time people.
SS# was never intended for uses that we see today. Since the US has no national ID system, this was and still is the only way to ID people throughout the country. It's the only number that you get from birth. Nothing else (I can think of) is like it like passport, state ID or Driver License (differ in every state).
LOL, I remember when the recommendation to prevent theft was to inscribe your SSN on your stereo, TV, and similar property! Holy moly!
Our credit union uses SS# for your account number so if you write a check it's there for anyone to see. I don't write decks any more.
dsb - I'd close out that account real fast and find another credit union.
Listen, no matter how careful you are, a thief can get your information. I believe it's up to the people that need this number to insure that they are doing business with the right person by using security questions.
I was getting my bank information updated to my new address so after giving information to the person on the phone she said she had to ask me a couple of questions before the transaction was complete. She asked me what was my third child's name and the price range of my first mortgage. (This bank never had my mortgage) After I answered those questions she said everything was alright where I proceeded to question her how she came up with the questions and answers when I had never given them to my bank. She told me that there is a data base they pay to use that has information on everyone so they know enough about you to insure that they are dealing with the right person. Any company that can open an account in your name has access to this info for a price. I feel they have a responsibility to use it to protect you and themselves.
Of course after I switched the information they sent a letter to my old address informing me a change was made.
You bank has "a data base they pay to use that has information on everyone so they know enough about you" and THAT doesn't raise a red flag to you?? Sheesh. What is this database and what all exactly is in it? I've never had such questions asked of me and I would get pretty nervous that it was floating around available for a price or for a good hack.
not for long they are fasing it out and using randome numbers they are even removing it from the ID's
I hope they are arresting these thugs. Isn't it awful that so many people would rather do something illegal to get money than to work for it. They need to realize it is the same amount of energy put forward and it may not be as exciting but they wouldn't have to worry about getting caught and taking a vacation in jail. Isn't it also amazing how many crooks just don't think they will get caught? Wonder if they discuss that in jail?
The libs don't want to lock them up, they want to give them amnesty.
The problem is the thieves are not even being held liable, much less prosecuted. Most of them are illegal aliens.
Yeah, they don't care about catching the perpetrators. I have a friend this happened to last year and he had a heck of a time tying to prove he was the person that the refund was actually entitled to.
So basically, it's a case of make the person who the money belongs to jump through hoops and let the person who forged the tax return get away with a free check.
UDunnoBro--AMEN to that. I was stopped by a local cop for a burned out tail light several years ago, and he took an inordinate amount of time back in his car with my DL and insurance card, finally came back and shone his flashlight on my face for about ten seconds while looking at my DL, and then said "did you know someone else is using your SS number?" See, in those days, it was ALSO MO's Driver's license #. He told me that TECHNICALLY he was not allowed to give me the name of the woman who was using it, but that it was a Hispanic name. When I tried to get me to GIVE me the name, he said he could be in trouble for even TELLING me about it!!!
Needless to say, the NEXT day I got a new DL #, and was in Social Security's office IN THEIR FACE. They too could "do nothing", except put a notation in my file that someone else was illegally using my number, but even THEY said that doing so wouldn't stop it, or even result in their investigating the person using MY info.
And she gave me the contact info for all for all three credit reporting agencies, and told me that I should constantly monitor my info in addition to putting notifications in all of them that someone was illegally using my #.
Oh, and BTW--she too would not or could not tell me who was doing it. And she said she was not technically supposed to tell me about the credit agencies, but SHE TOO had had her info stolen.
Your government at work for YOU, huh.
What is interesting about this is that they are using your SSN account and you should be entitled to and the government should be required to give you any information related to "your" account once they verify that you are the true account holder. That would include addresses and other information related to anyone using your account number. Maybe folks having these identity theft problems need to start filing freedom of information act (FOIA) requests on their SSN accounts. There is no legal justification for the government to keep information on your SSN account from you.
OK people...I don't remember reading ANYWHERE in the article that the majority of tax fraudsters were illegal aliens!
Marie--that's because MSN NEVER prints an article that is detrimental to illegals.
However, it is ALSO because it is Perfectly legal for an illegal to come here illegally, work here illegally, not pay in a penny in taxes, and as long as they get a 'tax info #' (they can't GET a SS#) file for a refund based on the number of kids they have, the more the 'merrier'.
Doesn't everyone wish we were back in those old days when a Social Security Card boldly stated on it:
NOT FOR IDENTIFICATION PURPOSES.
How come we the people can come up with solutions to the SS indentity theft problem and the government can't or won't fix the problem.
Because the people who get paid to pass the laws that "fix the problem" don't. And that goes for Dems and Pubs alike.
Another good reason for a flat tax. We could get rid of the IRS and save the money we pay them and nobody could cheat. It'll never happen though. The rich would have to pay and we all know that story.
Don't you still need some kind of agency to collect taxes, track incomes, etc.? Even a flat tax or VAT would require an IRS to collect the money. Not everyone has income taxes withheld from a paycheck - lots of income is from self-employment, investments, gambling, etc. To pay the flat tax on that income, somebody like the IRS needs to collect the info and $$$.
Read up on it. You pay the tax when you spend the money. If you don't spend the money you don't pay the tax. Very simple. But that's the problem.
We do need to drastically simplify the tax structure, even if it remains graduated. This would allow people to estimate their income accurately and pay quarterly, leaving a reasonable balance to be paid at filing time. That way, there would be no refund for criminals to steal.
Also, the amount of allowable unpaid balance without penalty should be raised to at least 20% of the total obligation to encourage people to under-withold.
Mary someone would still have to ensure that businesses comply and dont just pocket the taxes. You'll always have an IRS, its just who they monitor that would change.
Mary stealing more money from the rich to support your lavish social programs is not the way to move this country forward.
People don't seem to understand. You spend the money you pay the tax. Bussinesses and eveyone would pay the tax. No deductions. I'am not getting on the wealthy. I'am getting on the poor. They would have to pay also. That's why it won't work. It's simple and everyone would pay the same.
Yes, indeed, a flat tax. That EVERYONE pays. NO MORE 50% who pay NO taxes whatsoever.
National Sales Tax, no Income tax.
Mary Jones - You are mistaken. What you are talking about is NOT the Flat tax at all. Your're referring to what is termed the Fair tax, or VAT. Big difference.
Mary Jones: You say, "The rich would have to pay and we all know that story." Sounds to me like you are a very disgruntled and jealous person. Are you paying your "FAIR SHARE," Mary? I would suspect probably NOT with that sort of attitude. Odumba is certainly doing a great job of dividing Americans, isn't he. Evidence: MARY JONES
We NEED national IDs. I would have no problem with it; I don't know anyone who does. And with the technology available, we need a strong system to eliminate ineligible (e.g., illegal) individuals from using our social services, getting tax refunds, voting, receiving food stamps, having their rent subsidized, getting their kids registered in school, etc.
And these geniuses are still pushing for paperless tax filing? What a bunch of idiots.
At the very least they should VERIFY the identity FIRST, and only then let people file electronically. I realize that electronic filing makes it cheaper for IRS to do their work (although this does NOT mean cheaper to taxpayer, as they eat up such savings by expanding the agency), but such fraud makes it A BAD POLICY!!!
Agree! Plus I don't see why I should "pay to pay". It might make a modicum of sense if e-filing was free.
The electronic filing fee is yet another part of this additional revenue scam - they (IRS) know most Americans want their refund as soon as possible and are willing to pay for this pleasure. It is a double win for the agency. Fraud in US government is rampant: from IRS to Defense, Fanny and Freddie, Medicare and Medicaid - these people are incompetent, lazy, and NOT HELD ACCOUNTABLE for their screw ups.
In many respects I think the Internet has become a monster with all the hackers and con artists on it. Not only has it contributed to people getting scammed out of their money and identity theft, but now their talking about creating an on line voting system. If that happens, we will have the Chinese, North Koreans, al-Qaida, and everyone else voting for our President.
They already can donate anonymously, but I guess that's okay? Which is better, the monster you know or the hidden one?
The Federal Government is like the gang that couldn't shoot straight.
The IRS can't stop giving money to scammers, Medicare can't stop massive fraud or even stop sending millions to empty storefronts in Miami. How many folks are on SSDI that really ought to be working? The TSA is hassling the elderly and the very young, and baggage theft is rampant.
Yet we have a huge portion of our voters that think we ought to let President Obama consolidate more of our lives under the control of the Federal Government. I'd opt to hold them responsible for fixing what they're already failing at, rather than giving them more vital responsibilities.
Wait until the Obama Health-care circus starts. If you think the IRS is a problem just wait as you haven't seen anything yet.
And you think choosing between bankruptcy/homelessness and dying of sickness is better? It's time to start taking health care seriously in this country instead of acting like a bunch of spoiled children.
Here is the problem Mr Tell, Oboobas budget has made promises to the American people he can not pay for. His budget calls for 37 Trillion to fund all the entitlement programs, unfortnately this is no provision to pay for it. SO once again Obooba and his minions are lying to the American people.
If everyone would pay their fair share of the taxes the budge would not be a problem. Flat tax everyone pays 15 percent and we are done with this mess.
Been there ... IRS sent me my refund minus $5,000 .... someone else from another state filed a return with the wife's SS# ... now 2 years later .. still no refund and every time you call the IRS ... they send a letter TELLING me they will follow up after 30 days ... again, 2 years later and now answers only "we'll get back to you."
NICE!
Steve id be hiring an attorney.
It would cost him more than the missing 5K.
Some illegal is probably spending you tax return money and will be voting in November for Obama.
Steve--your case proves the point someone made above--you should NEVER use the tax withholding as a 'savings account, you should ALWAYS Owe on tax day.
It will be a year in March and we have still not gotten ours back from identity theft. We have talk to twenty people and we still get the information of we are working on it. They know who did it how they did it and we still have no refund after a year.They always tell us that they will contact us in forty five more days and do not contact them. Forty five days pass and we do not hear anything from them except we get a letter stating they are going to freeze all our assets if we do not pay they identity theft amount. So we have to call them and they put off the freezing our accounts for three more months. They have no idea when it will be settled. The lady said they had thirty five thousand cases in 2009 and it jumped to six hundred thousand in 2010. They do not even have the people to keep up with the demand of what is going on. You pay your taxes all year and hope to get what ever is coming to you in a refund but it does not always seem to happen. You try to get some information and all you get is that is that's internal. All we can do is keep calling back every forty five days.
MOmaid,
You do not understand. It doesn't make any difference whether you owe money or not. The fraudsters make up your income amounts and debits and then ask for a refund amount based on the numbers they have conjuered from thin air.
I say BULL!!!!!! My ex decided to take our daughter one year, even though he had not paid ANY child support or even attempted to see her. I got turned down for claiming her on my returns, I called the IRS, they said they would look into it ..... it took 3 months, but I got my FULL refund and he got a letter telling him that he owed them money. How do I know, because he had the nerve to call me bitching. I told him that I would have had no problem with him taking her had he been helping with her care. So once again ..... I say BULL!!! If you provide them with everything they need they do respond, maybe not in your time, but they do answer you.
Also.. How is it that all of a sudden the Government is in so much trouble? You people are a riot. It has been this inefficient for a very very long time, get a clue and then hold your elected officials feet to the fire. No raises, no vacations, no separate retirement plans, they get what we get and if they want to start cutting, then they need to start with their staffs!!!
I think this article is a prime example of the IRS doing a little "CYA". Take a look at the forums for TurboTax or H&R Block and you will find dozens upon dozens of posts from taxpayers who have eFiled and cannot get any information from the IRS that even acknowledges that their returns have been filed weeks after they have been "accepted" in the tax programs, much less a direct deposit date.
I have no doubt that identity theft is a real problem that needs to be addressed; but it is an unholy mess at the IRS right now and I fear it's only going to get worse as the tax deadline approaches. Bottom line, if you are owed a refund....don't plan on spending it any time soon!
Then there was the time when on the very same day, I got two letters in the mail, one from SS and the other from a credit card company.
"For my protection", one showed only the first 5 digits of my SS number. The other showed the last 4. Hmmm....
you should have told the credit card company to assign you a separate number just that you two know
Or perhaps I could get a SS number that only the IRS knows?
not going to happen in your life time
The irs was told back in 2005 at their kcmo service center if they didn't tighten the computer standards to prevent fraud, this would be a major problem in less than 5 years. the politicans play lip service to the problem. a simple ip controller, mandatory pins on all provider forms, a delay on checks not mailed to previous address of record. tax refunds must be sent electronicly to seniors social secuity bank account and many others.
Just another Government Fu^k up!
And these are the guys who are going to be the "healthcare police"?
pinkfloyd111:
YUP!!! You've got the WHOLE picture!
Hahahaha....Going thru this crap right now! Some jerk stole our children's SSNs off of TurboTax online 4 years ago and the IRS told us that the PIN they issued us would prevent us from having any more problems with it. Went to e-file this year and wouldn't you know, STILL can't do it! The jerk is using our dependants' SSNs AGAIN and it will not allow US, the rightful parents and taxpayers, to e-file. We have to mail in a paper return, and then the IRS will "contact" the other person and ask for "proof of ability to claim the dependants".
The problem I have with this article is that it says the IRS is catching the criminals and pressing charges. They have NEVER done that in our case! They have not done ANYTHING to assist us in our case! It has been going on for 4 years now and STILL NOTHING!
Orginally SSN numbers were to be used only by the social security administration...just sayin'
We have been reporting my husband's ex-wife for years to the state of Arizona, the Feds and IRS, but they do NADA! She has stolen both our socials and all the children's socials (5) to write payday loans, buy a car and open fraudulant bank accounts! Now she has been caught trying to use his parents info!!! Still they do NADA!!! They even tried to arrest our 23 y/o daughter for bad checks when she was in the hospital giving birth! THE IRS DOESNOT LISTEN!!!! What can we do? She has filed $28K in false tax refunds and WE are told we have to pay the bill!!! WTF???? Can afford a lawyer, so ant advice will help!!! Thanks.
Contact the IRS and ask for an Advocate. They will assign you a specific person and case number to try to resolve your problem. My daughter had great success after her identity and tax refund was stolen. She too got the runaround from the IRS until a family friend made this suggestion to ask for an Advocate. File criminal charges against your ex-wife. I would start by calling the Attorney General Office in Arizonia and ask how to file charges. Put a block on your credit report and your childrens credit reports. Contact Social Security and put a block on your SS no. so some illegal isn't working under your SS no. and you won't know it until the IRS contacts you about owing money on wages you know nothing about. A lot of these suggestions are on theCredit Bureaus and IRS pages "If your Identity is stolen"
Does anyone have an idea on who will have to make up for this fraud loss?
You and me, the honest taxpayers. Another example of government inability to successfully run any large program.
A little of 100 arrests for hundreds of thousands of fake returns now that is impressive. Now add this to the tens of thousands of illegals getting earned income credit refunds and you can see where this is headed - more money going out than in for the Obama dependent nation. The Great Divider is well on his way to destroying this country.
Yes, I think Bush did a better job of fixing the country. This was only an issue since Obama has been in office.
Since now f*c*book has identity verification you just make them collect your taxes, might as well since you're already paying them hefty amount in life's time, which is priceless.
We need to round up all the scamers and put them in jail. Remember the old chain gangs? Well we could use the prison labor to keep our streets clean at least.
Article
deceptively covering the potential for IRS fraud
The only "scammers" you'll find are sitting in Washington, DC. This article is a threat to any one awaiting a refund. The government tosses out this story each year to cover their ____'s in the event someone's check doesn't arrive.
I am certain that all members of Congress probably have their refunds today.
I hope that all readers consider this.
Start thinking how the government handles things on a regular basis and you will be better protected from it's unethical conduct.
The Social Security Administration has know for years that there are thousands of people using other people's SSN and do nothing about it. It's the same with Credit reporting agencies and Banks but they won't let you know.
Last year, someone used my husband's social security number to file their tax return. A year later they are still investigating the case and we have yet to see our refund. The IRS is so rediculously slow and inefficient.
@Kristinak811...someone used my name and social security number to file their return. I called my Congressman and the IRS. You have to get a taxpayer advocate to assist you. Unfortunately, getting a taxpayer advocate is not thouroughly published to the public and you have to fill out paperwork to be able to get an advocate. My Congressman's staff filed an incident report with the taxpayer advocate too. So, the taxpayer advocate had myself and the Congressman's staff pressuring him to resolve the case. It took 4 months for me to get my refund check. The IRS have since given me a PIN to file my taxes electronically for now on. Everyone should have a PIN. In the end, I learned that mailing my tax forms is the safe method!
Unfortunately, these investigations take time and the IRS has undergone some heavy cuts in the last couple of years. With less money available, there are less people to handle these issues, which means it takes more time. Also, every situation is different. One case may take only 4 months, another may take a couple of years. They are trying, but the are limited by the resources that they are given.
@marinesniperwife- have you considered using your local TV news media? They live for this stuff, plus it might be a way to advertise your situation to get someone to either help or do something about it.
I wonder if the huge cuts in funding and subsequent cuts in staffing at the IRS might not somehow be connected to this problem?
Ioway--I sincerely doubt that there have been ANY cuts in staffing at the IRS.
There have actually been some huge cuts in staffing at the IRS with more to come due to budgetary cuts being implemented by Congress.
this is what happens when it is government policy to not pursue those stealing ssn's. has been a policy since clinton years as illegals have been protected as well as citizens in stealing others identities. excuse when i worked at irs- collections years ago was no resources. well not the pigeon is coming home to roost and the honest citizens are going to pay the piper. id theft should be a class I felony with a minimum of 10 years in a federal penetentiary. the damage done to people is almost impossible to fix and then it is still out there for many years.
Fair Tax system and abolish to Internal RipOff Service and there won't be these problems.
I checked out the so called "Fair Tax". There is nothing "fair" about it.
You obviously can't read