The 2011 tax return season probably saw more than $5 Billion in IRS refunds to identity thieves who fraudulent filed tax returns. It is estimated that that number will climb to $21 Billion in the next five years. I have been troubled by this number for quite some time. It doesn't just mean that the government is being stolen from. It means that the citizens who work hard and pay what they owe are also getting stolen from.
In June, it was reported that the Senate was working on a bill to add funds to taxpayer services and tax law enforcement. I was truly hoping that this would do more to help with the fraud situation than the few people they added to the Tax Fraud Department this year. However, it seems that none of this would have mattered. Why? Because IRS supervisors were actually discouraging employees from detecting tax fraud!
Now, it suddenly makes sense that this has been a ridiculous year for tax fraud. It makes sense that $3 Million in refund checks went to one address without raising a red flag at all. I can't say I'm too surprised. After all, IRS employees aren't all saints. Just last month, I read about an IRS compliance officer who overstated $95,000 in deductions.
I have stated over and over again that the IRS is not here to be our friend. However, I can't help being upset. The IRS is doing absolutely nothing to protect American citizens from being stolen from. I have talked to many of these victims and the IRS treats them like liars. They do nothing for them.
It was more important to the IRS to get work done quickly than accurately. (I guess they were taking that saying "Good enough for government work a little too seriously.) That is why they didn't look into potential fraud cases like they were supposed to. Yet, when a taxpayer makes one small mistake on a legitimate tax return, the IRS jumps on them like they are the thieves. What is wrong with this country when a couple who misses a tiny technicality has all $25,000 of their charitable donations disallowed, but illegal immigrants filing clearly fraudulent returns will get away with it?
Now, the IRS is saying that they are working on fixing the situation. They're saying that they will improve the system and help Americans. Why does that old, sad song sound all too familiar?
If you are the victim of identity theft, my deepest sympathies. Please talk to the police, because the IRS will not help you. If you have a large tax debt, that's something I can help you with. Just call 888-415-1337 or fill out the submission form for a free, no-obligation consultation. In either case, I wish you luck...because the IRS is NOT your friend.