WASHINGTON Rashia Wilson bought a in medical bills, was ld it would take several months to process her returns. She was then ld that she would be among those who receive a special personal identification number, so the IRS would know she had been identity victim theft and that any return filed in her name should be checked rigorously to make she it was filed by her. So, hossli’s testimony.
Whenever subjecting victims to a series of traumatic delays that often were caused by confusion among IRS agents, a Treasury audit said, Understaffing and lack of training at the IRS meant that it ok an average of 312 days to resolve identity theft cases.
While cutting 312 average wait days to resolve identity theft cases to 120 days, IRS officials said they have recently improved their response time to complaints.
All of this raises the fundamental question. The actual question is. Why does the IRS persist in the practice that enables such schemes issuing refunds before being certain the money is going to the legitimate taxpayer? On p of that, the answer speaks volumes about the IRS outdated nature system of processing returns, and the political pressure to get refunds quickly to taxpayers.
It often pays the refund anyway, under the current system, the IRS cannot always be certain that a return is filed by the person whose name and Social Security number is on it.
While hoping to get a refund before the real taxpayer even thinks about filing, while that had been promoted as efficient service, it also has prompted criminals to file false returns as soon as tax filing season begins. That would enable the IRS to recognize that more than one person is using quite similar Social Security number for a return, and prompt the agency to investigate which one is legitimate. The IRS follows a congressional mandate to pay refunds as soon as possible after a return is received, often within days.
Another way to cut the identity theft would be for Congress to approve a recommendation from the National office Taxpayer Advocate to create a real time system in which tax returns would be matched up front with thirdparty financial information such as statements on wages and interest and dividends. Currently, the IRS often receives that electronic version information weeks or months after it has issued a refund.
The IRS does not have the ability to check that the taxpayer is entitled to the refund, that it is a real person, former IRS commissioner Lawrence Gibbs said in an interview, when the IRS gets a return that claims a refund.
While acknowledging that such a change might take several years to fully implement. Said that he would like to see returns checked up front with financial information. They don’t have records to say whether the person claiming the refund is entitled to it. They just send the check. Now regarding the aforementioned fact. The crooks found out it was nirvana, and as a result you have seen a massive influx of fraud. It would also likely require Congress to increase IRS funding at a time when it had been cutting the agency’s budget.
The majority of the fraudulent tax returns are filed by using the Social Security numbers of people who are not required to file returns and thus don’t realize their identity was used to obtain for a while been easy to get access to what is known as the Death Master File, which includes Social Security numbers of recently deceased people. Criminals ability to file returns using the names of dead people had been a known problem for years. For example, 19102 dead people; 37249 prisoners; and 753000 people whose income level did not require a tax return, potentially fraudulent returns were filed in 2011 using the Social Security numbers of 1451 children under 14 years old.
Social Security number of a dead child, for example, to claim that person as a dependent in death year.
It was not until December that Congress passed legislation to restrict the public’s ability to get such information, and it still remains available while regulations are written to implement the new rule. Koskinen, the IRS commissioner, seemed stunned when he learned at a congressional hearing on Feb. While saying it represents a target of opportunity for criminals to steal identities, Death Master File was still publicly available.
Taxpayer theft identities has become a thriving business. An employee of a Alabama state agency was found to have stolen identity information from a database and sold it an accomplice who filed more than 1000 false returns. Most of the identity theft is committed by tax preparers from their offices. In one recent case, a Florida nursing home employee and an accomplice were found to have stolen the Social Security numbers and other information of 617 people, assembled the data in a spreadsheet, and then sought to sell it for in restitution. Although, Rashia case Wilson has helped publicize the issue of taxpayer identity theft, in part colorful because way the Tampa woman was said by authorities to have boasted about her activities. Justice Department.
As indicated by court records, she posted on her Facebook page that she was for ages with a picture that showed her hoisting bound wads of bills. If U think indicting me will B easy it won’t, she dared the government to catch her. I’m a millionaire for the record, I promise you! Using a taxpayer identity with the initials, Wilson on April 15, 2009, obtained a mind boggling.