$12B in Fraudulent Tax Refunds Made By IRS In FY 2011

The Treasury Inspector General for Tax Administration revealed that the IRS (Internal Revenue Service) paid out $12B in fraudulent tax refunds in just the last 12 months!

$12B dollars is 15 times greater than the $800M the Treasury estimates it would gain from repeal of the Bush/Obama Tax Cuts for the top 2% of filers –

Reading the details – for example –

Incredulity quickly gives way to smoking, hot, ANGER –

Its so easy to steal from the IRS that Florida police report a decrease of street crime as drug dealers and their customers turn to IRS Fraud as a faster, more lucrative and safer way to “score”.

Tax Preparers can make more money with their own laptops at home on a weekend than they make in legitimate business in years!

But soon, my anger turned to laughter –

Silly me.  There is nothing that scares me more than the thought of an IRS audit.

Imagine the hundreds of hours preparing my own returns, fearful that I would be penalized if my numbers and the IRS numbers didn’t (computer) match exactly –

What computer match!!!!!

The IRS runs the same number of preventive checks that Medicare does – exactly 0.

  • Refunds are paid immediately
  • Even before the deadline for employer of financial institution reporting submissions that should be the first line of fraud defense –

In 2012 this fails the common sense test  – even by what we laughingly referred to as  “government work” –

  • Is there a business in America where the Accounts Receivable (AR) Dept. will pay a vendor without a three way match of
    • PO
    • Packing Slip
    • Invoice?
  • Is there an AR Dept. that would pay multiple invoices against a PO (Social Security Number) without additional verification?
  • Two Social Security numbers at the same address on separate returns – possible, maybe?   But 100, 1000 –
    • Google Maps can analyze the probabilities in nanoseconds!!!

Call me Polly Anna, but shouldn’t criminals at least need a high school diploma to successfully defraud the US Government?

Write, e-mail, tweet, or send a smoke signal to your Senators, Representatives, Secretary Geithner and the White House.

Tax fairness starts with honest and verified tax collection.

 

 

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