Tax fraudsters believe their fraud will pay, but in reality
it rarely does. Every week, hundreds of cases of tax fraud are discovered
across the country. The penalty for indulging in tax fraud is heavy:
imprisonment and/or penalties.
Recently, a certified financial planner and self-employed
tax preparer based in Cleveland was sentenced to seventeen and a half years in
prison for financial crimes. He had committed wire fraud and mail fraud, and
filed false income tax returns. His victims were mostly charities, churches and
non-profit organizations. Along with jail-time, he has also been ordered to pay
$4.4 million in penalties.
Tax preparer fraud is high on the IRS hit-list. Fraud by tax
preparers is among the most common tax frauds being listed under IRS’ Dirty
Dozen Tax Scams.
One reason for the growth of tax fraud is the increasing use
of technology. This week, a massive tax fraud scheme was busted where
fraudsters used the well-known family history research website, Ancestry.com,
to dig out Social Security Numbers of people who had recently died. They filed
fraudulent tax returns in their names to seek large refunds.
The fraudsters were able to receive $200,000 in tax refunds
from the IRS, but their scheme did not last long. They were offered jail-time
by the district court.
Tax fraud does not pay in the long run even though it might
for a short duration. For taxpayers, it is important to expose tax frauds so
that they may not be tempted to participate in a financial deal that could land
them into trouble.
Along with keeping your tax information safe both online and
offline, you must also report any suspicious tax activity to the IRS. In case
of lost identity or theft, you must immediately inform the IRS to stop misuse
of your tax information. Stay safe from tax fraud by staying informed.
Labels: Identity Theft, IRS, Tax News, Tax Scams, Taxpayers