TAX FRAUD SCHEMES. - 60 Minutes

[taxea]

The majority of these ID theft returns were done through free DIY online or other DIY tax software,,,they don't require a ptin for filing....my post suggested this type of filing should be eliminated.

[taxmom34]

I saw the 60 minute piece and was amazed at how many fraudulent returns these guys were submitting every day . the guy averaged 40% of refunds he submitted. I think that the best way to at least stop some of this is to get rid of the EIC credits, send these monies back to the welfare department of each state and let local government figure out who gets how much. they are more likely to be able to see the fraud. the EIC credit is so large that crooks are not worried about getting caught.
another area is for IRS to not allow monies to be deposited to someone else's bank account. if your name is not on the account you get a check in the mail.
just my two cents, thank you.

[TAXNJ]

Well said

PTIN holders aren't all under circ 230 if that's what you're thinking, but yes I'm talking about committing tax fraud. It's still tax fraud even if the perpetrator is not regulated by the IRS. This thread is "tax fraud schemes - 60 minutes" after all. The question is, so what? If I pay some homeless guy to get a PTIN so that I can file fraudulent returns with it what is my real risk and what is the potential punishment? Is it enough to stop an identity thief from doing it?

I think if someone was already committing identity theft without using a PTIN, they'll be willing to steal/pay for a PTIN to continue filing should a PTIN be required. This already happens with EFINs (no rejects for DOB mismatch make it easier for someone to commit identity theft with an EFIN. Probably has better payout rates vs. DIY as well.)

As you state "what is the potential punishment?". Fraud is going to happen and is increasing as proved by facts in this report. Is three to fours year in prison a deterrent?

One report said a sentence of 27 years was given. Could that be the possible solution vs. three to fours year in prison?

[David1980]

wouldn't that be committing tax fraud now that the IRS regulates PTIN holders?

PTIN holders aren't all under circ 230 if that's what you're thinking, but yes I'm talking about committing tax fraud. It's still tax fraud even if the perpetrator is not regulated by the IRS. This thread is "tax fraud schemes - 60 minutes" after all. The question is, so what? If I pay some homeless guy to get a PTIN so that I can file fraudulent returns with it what is my real risk and what is the potential punishment? Is it enough to stop an identity thief from doing it?

I think if someone was already committing identity theft without using a PTIN, they'll be willing to steal/pay for a PTIN to continue filing should a PTIN be required. This already happens with EFINs (no rejects for DOB mismatch make it easier for someone to commit identity theft with an EFIN. Probably has better payout rates vs. DIY as well.)

[taxea]

I'm not sure how much requiring a PTIN (or an EFIN) for that matter would slow things down. It would be very easy for me to find someone willing to sign up for a PTIN or EFIN if I compensated them for it. Say, for example I directly deposit $8,000 to their account. Tons of people willing to go through background checks and so forth for an $8,000 payday. The best part is I don't even have to pay it, I can just file a tax return for them with an inflated refund...

wouldn't that be committing tax fraud now that the IRS regulates PTIN holders?

[David1980]

saw it. this is one of the reasons why they are 1. tracing computers and 2. limiting refunds to 5 per address.

I think they should stop free and other on-line DIY filings.. Or require all returns to be efiled by PTIN holders. Wonder how much further they will get in their efforts by 2016.

I'm not sure how much requiring a PTIN (or an EFIN) for that matter would slow things down. It would be very easy for me to find someone willing to sign up for a PTIN or EFIN if I compensated them for it. Say, for example I directly deposit $8,000 to their account. Tons of people willing to go through background checks and so forth for an $8,000 payday. The best part is I don't even have to pay it, I can just file a tax return for them with an inflated refund...

[taxea]

saw it. this is one of the reasons why they are 1. tracing computers and 2. limiting refunds to 5 per address.

I think they should stop free and other on-line DIY filings.. Or require all returns to be efiled by PTIN holders. Wonder how much further they will get in their efforts by 2016.

[kathyc2]

For those like me that didn't see it, here's the transcript:

http://www.cbsnews.com/news/tax-refund-scam-60-minutes-steve-kroft/

Jail time should me significantly more than 40 months IMO.

[TAXNJ]

Amazing

It did not surprise me at all!

Amazing how it is increasing from a couple 100k to billions being stolen in just a few years from the taxpayers. Also, the segment shows how easy and methods used to create false returns by criminals.

[ATSMAN]

Interesting segment covering ID Theft today reported on the tv show 60 Minutes 6-28-15.

It did not surprise me at all!

[TAXNJ]

Interesting segment covering ID Theft today reported on the tv show 60 Minutes 6-28-15.