Epic tax scam in Tampa

Apparently drug dealers are finding it easier to make money by scamming the IRS. Get info on a dead person or steal an identity, then use that info to process IRS refunds for yourself using online filing programs like Turbo Tax.

The take is over $130 million. Sounds like serious organized crime to me.

Sen. Bill Nelson (D-FL) is introducing legislation to stop fraud like this.

The problem seems to be that online filings don’t check to make sure absolutely the person is who they say they are. Also, it allows one to easily change where the refund is sent and what form it’s in (check, debit card, etc.) The IRS says they’re working on it. One of the big loopholes is that the IRS doesn’t closely track refunds less than $10,000. That’ll be changing, I’m guessing.

One comment

  1. I already have four different PINs for dealing with the IRS: 1 is 4 digits, 1 is 5 digits, 1 is 6 digits, and one is required to be an astounding 10 digits. Of course I have them all memorized (not). Which means they have to be written down, which sort of defeats the purpose of having a PIN. I dread hearing what the IRS’s solution to this one will be. Will I need a 20-digit PIN to file my tax return?

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