Tax refund fraud in Statesboro?
Mr.
Last comment by eddierushing 8 months ago.

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I heard news of Federal/IRS local investigation of identity theft/IRS refund fraud. The IRS aknowledgeded in AP article of June 2012 that suspects that $5 Billion in refunds were fraudulent in 2012 and among suspect pool was 200+ refunds going to one private bank account and 2000 separate refunds going to same address. These two cases alone amounted to 2.5 million dollars. In this era of light speed communication and automated computer programs you could simply program "hold" into software on multiple refunds to same address or private bank account. The local investigation probably cost at least a million bucks and could be much simpler; just not send refund to person listed as "deceased" or multiple refund to same person. There was scandal from app. 8 years ago of prison gang with tax refund scam and when someone finally "ratted" them out they had scammed around $10 million in fraduelent refunds(refund wired to bank, bogus address info) The federal pension program announced earlier this year that it suspects that $500 million in pension payments went to "dead" people (prob. for coffin air freshner). In this age of tight budgets and struggling taxpayers its time to demand common sense from Washington on expenses. These gov't agencies are not subject to audits and only partial audit of IRS in 90's during Ginrich era revealed app. $400 million of budget "vanished" and not even accounted for. Washington D.C is the home of the biggest most wasteful institution in the history of mankind.


Latest Activity: Sep 20, 2012 at 11:18 AM


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Bryant commented on Thursday, Sep 20, 2012 at 15:21 PM

Not as simple a solution as you might think. IRS still uses tape transmissions to a national center for updates and permanent records. We're talking 1980's technology. Why? Because IRS is every politician's favorite whipping boy. Don't like the tax law? Lay the blame at the feet of the IRS and not with Congress.

There have been some significant computer upgrades which have improved identification of fradulent schemes. But until further enhancements are made - not only with IRS, but with OPM and military systems - you'll still have massive refund scams and benefit checks going to dead people.

It would be money well spent and probably recouped in a very short time.

eddierushing commented on Friday, Sep 21, 2012 at 12:08 PM

I did not say simple solution; I meant to imply that existing technology could fix. They are in fact catching much of this as that is where these press releases stating where,how much,to who come from. They just have policies that hinder investigating much of this or claim too busy. The system as it exists is so inefficient that cost to fix could be recouped. A temporary fix would be doing follow up investigation and charging whom ever is defrauding "taxpayers" and put in prison. IRS websites(not all 80s tech.) and publications could emphasize penalties and show examples of sentences. The Congress passed the 16th amendment which created IRS so they do have responsibility in mandating updates. The IRS "top dogs" may not want to be updated as the buracrats on inside know that unwanted reforms/oversite may result also. The SS admin. underwent major computer update in 1999 so as not to crash in 2000; if they can accomplish so can IRS.


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