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IRS Gave $4 Billion In Refunds To Identity Thieves

From the Associated Press:

Report: IRS refunded $4B to identity thieves

By STEPHEN OHLEMACHER | November 7, 2013

WASHINGTON (AP) — The Internal Revenue Service issued $4 billion in fraudulent tax refunds last year to people using stolen identities, with some of the money going to addresses in Bulgaria, Lithuania and Ireland, according to an inspector general’s report released Thursday.

The IRS sent a total of 655 tax refunds to a single address in Lithuania, and 343 refunds went to a lone address in Shanghai. In the U.S., more fraudulent returns went to Miami than any other city. Other top destinations were Chicago, Detroit, Atlanta and Houston.

The IRS has stepped up efforts to fight identity theft, but thieves are getting more aggressive, said the report by J. Russell George, Treasury’s inspector general for tax administration. Last year, the IRS stopped more than $12 billion in fraudulent refunds from going to identity thieves, compared with $8 billion the year before…

Thieves often steal Social Security numbers from people who don’t have to file tax returns, including the young, the old and people who have died, the report said. In other cases, thieves use stolen Social Security numbers to file fraudulent tax returns before the legitimate taxpayer files…

Just wait until the Obama-Care navigators get to work.

Despite budget cuts, the agency said, agents have resolved more than 565,000 cases of identity theft this year, three times the number of cases resolved at the same time last year…

The IRS has had it budget increased, not cut.

Last year, the IRS issued 1.1 million refunds to people using stolen Social Security numbers, the inspector general’s report said. Those refunds totaled $3.6 billion. By comparison, the IRS issued $5.2 billion in refunds to people who stole Social Security numbers in 2011, the report said…

Additionally, the IRS issued 141,000 refunds last year to people using stolen taxpayer identification numbers, which are typically used by foreign citizens who earn money in the U.S. Those refunds totaled $385 million, the report said.

Florida is a big target of identity theft in part because of the large number of older residents living there. Older and younger people can be targets for identity theft because many don’t meet the income requirements to file a federal tax return…

But they are going to flock to the Obama-Care exchanges.

Nearly 38,000 potentially fraudulent refunds, totaling $147 million, were sent to addresses in Miami last year, the report said.

Among individual homes, one address in Orlando received 580 tax refunds totaling $870,000 last year, the report said. Another Orlando address received 291 refunds totaling $466,000…

And nobody noticed?

This article was posted by Steve Gilbert on Friday, November 8th, 2013. Comments are currently closed.

2 Responses to “IRS Gave $4 Billion In Refunds To Identity Thieves”

  1. captstubby

    A billion here, a billion there, pretty soon, you’re talking real money.
    Although often quoted, it seems Dirksen never actually said this. The Dirksen Congressional Research Center made an extensive search when fully 25% of enquiries to them were about the quotation. They could find Dirksen did say “a billion here, a billion there”, and things close to that, but not the “pretty soon you’re talking real money” part. They had one gentleman report to them he had asked Dirksen about it on an airflight and received the reply: “Oh, I never said that. A newspaper fella misquoted me once, and I thought it sounded so good that I never bothered to deny it.”
    Wikiquote

  2. It’s easy not to care when it’s Other People’s Money

    /whatever happened to Fiduciary Responsibility?


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