Friday, May 17, 2013

Tax Frauds Defraud the Homeless, Poor for Quick Cash



Tax frauds will go to any length to scam taxpayers. The current scam targets the homeless, drug addicts and the poor  by duping them into signing blank tax forms in return of “free” government money. Afterward, the fraudsters receive large refunds, most of which they pocket as a “fee”.

Tax frauds use the Earned Income tax credit (EIC) to claim refunds and enter false information on the tax forms signed by their “clients”. Between 2008 and 2011 fraudsters, Isaiah Konkus of San Diego and Justin Petersen of Lakeside cheated the government out of thousands of dollars using false tax returns.

The fraudsters filed more than a thousand false tax returns during those three years, while also falsifing their own tax returns to colelct more than $35,000 each, according to prosecutors. They pled guilty to all charges in October 2012.

It is important to know the various methods tax frauds use to dupe taxpayers and the government, to be able to take timely action to against the fraudsters.

Targeting homeless shelters, trolley stations, and single mothers, tax frauds put forward tempting deals of free money to attract lower income taxpayers. Indulging in such fraud is a tax crime that can lead to penalties, fines, and/or imprisonment.

The IRS has been fighting tax fraud for years, but the extent of tax fraud steadily increases. The IRS complains that a lack of enforcement staff and their limited resources as the reasons for their inability to control the extent of tax fraud. Meanwhile, tax fraudsters get away with large amounts of tax money without punishment. At the end of the day, ultimate protection lies with the taxpayer, as authorities are failing to bring down tax fraud.

0 comments:




Full Name*
IRS Amount Owed*
Primary Phone*
--
Please Describe Your IRS Tax Problem


We Will Respond within 30 Minutes
During Business Hours

* By clicking the button above I agree to receive telemarketing calls made through automation software at the number(s) provided. In doing so I waive any participation in the DO NOT call list. I understand that consent is not a purchase agreement.