Saturday, July 09, 2005

Tax Fraud from Prison Update

Last week, the IRS reported in hearings before the House Ways and Means Oversight Subcommittee that they had confirmed large amounts of tax fraud being committed from state and federal prisons. They stated that last year, they detected 18,000 fraudulent returns.

Tax Fraud occurs when someone steals an identity and files a false return. Because of this, it contributes to the growing identity fraud problem.

Here is a previous post on a prisoner, involved in this activity, who told all.

Link, here.

Here is another article where more tax fraud was being committed and the money obtained was intended to be used in the overthrow of a government.

Link, here.

The IRS claims that they identified 78 percent of the fraud last year and estimated their losses at $15,000,000 to this activity. I wonder how the IRS can identify at they detected 78 percent of the total? It would seem to me that there has to be a portion of this that remains unidentified, which would skew any statistics made on this.

If you suspect any type of tax fraud, you're asked to call IRS investigators at (800) 829-0433.

Click on the title to link to an article on this.

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