Yes, the do the data comparison in August.
By then all the refunds are out of course. But they do indeed come after people.
And the 'fraudulent' return figures your posting is from where?
Mis-statements on a return, identity theft, etc? What makes up those numbers?
Examples of Identity Theft Schemes - Fiscal Year 2014
get a list of SS#s and on jan 19 go file returns - make up all the info, get back up to $9k per return (eitc, etc) Not a problem.
Odds are you can get 80-90% of the refunds.
The IRS, if they catch you , may put you in jail for 20 years though. (they've done it to many others).
now, how do you want them to stop it? Ohio tried it the past 2 years...Income- Identity Quiz
and if you follow the directions it's not too terrible - but for many it's a nightmare. Bring in your ss#, photo id, birth certificates, a letter from your employer and a lot more - for everyone in your house. I had a PA resident that worked in ohio get the letter..threw it away. Turned out the ohio employer witheld ovrer $3500 in income tax which they shouldn't have done - it's owed to PA. The taxpayer had to prove their identity to get the money back to give to PA...which they hadn't been able to do before april 15..so now they've got penalties and interest from PA, had to pay for 2 tax returns to be done as well.
And the IRS does not sent out prepaid cards. The ONLY way to get your money from the IRS is a check to you or a direct deposit to a bank account. Period.
Now what my employer can do, does, (jackson hewitt) is an AR - assisted refund. Instead of paying our fee up front, we can take it from your refund. BUT the IRS is very very very rigid on the refund process - so what we must do is open a bank account in your name, the refund goes there, we get paid by the bank and then YOU decide what you want done wtih the balance due you - direct deposit to your bank account (and i'd say 20-30% of the, well, welfare crowd, don't have or can't get bank accounts AT ALL) so now what? they can't cash a big check..no bank account. Can't do direct deposit - no bank account.
So we issue them a prepaid card (visa last year, this year it's an amercian express 'serve' card). and the refund goes there. they can ATM or use it like a credit card.
OR they can get a check at our office - and cash it at walmart (since most walmarts have a jackson hewitt kiosk in them).
Or new thisyear - 'direct 2 cash' - the bank account mentioned above will send up to $7500 to the walmart money center and the taxpayer goes there with a pin number and picks up CASH.
And yes there are LOTS of things they don't pick up on - married or single - no way for them to know really.
And kids do come and go, dependents come and go, I see it all the time and it's legit most of the time.
MANY divorced people take turns claiming the kids for example.
Or a kid returns home to the nest and is now a dependent.
By then all the refunds are out of course. But they do indeed come after people.
And the 'fraudulent' return figures your posting is from where?
Mis-statements on a return, identity theft, etc? What makes up those numbers?
Examples of Identity Theft Schemes - Fiscal Year 2014
get a list of SS#s and on jan 19 go file returns - make up all the info, get back up to $9k per return (eitc, etc) Not a problem.
Odds are you can get 80-90% of the refunds.
The IRS, if they catch you , may put you in jail for 20 years though. (they've done it to many others).
now, how do you want them to stop it? Ohio tried it the past 2 years...Income- Identity Quiz
and if you follow the directions it's not too terrible - but for many it's a nightmare. Bring in your ss#, photo id, birth certificates, a letter from your employer and a lot more - for everyone in your house. I had a PA resident that worked in ohio get the letter..threw it away. Turned out the ohio employer witheld ovrer $3500 in income tax which they shouldn't have done - it's owed to PA. The taxpayer had to prove their identity to get the money back to give to PA...which they hadn't been able to do before april 15..so now they've got penalties and interest from PA, had to pay for 2 tax returns to be done as well.
And the IRS does not sent out prepaid cards. The ONLY way to get your money from the IRS is a check to you or a direct deposit to a bank account. Period.
Now what my employer can do, does, (jackson hewitt) is an AR - assisted refund. Instead of paying our fee up front, we can take it from your refund. BUT the IRS is very very very rigid on the refund process - so what we must do is open a bank account in your name, the refund goes there, we get paid by the bank and then YOU decide what you want done wtih the balance due you - direct deposit to your bank account (and i'd say 20-30% of the, well, welfare crowd, don't have or can't get bank accounts AT ALL) so now what? they can't cash a big check..no bank account. Can't do direct deposit - no bank account.
So we issue them a prepaid card (visa last year, this year it's an amercian express 'serve' card). and the refund goes there. they can ATM or use it like a credit card.
OR they can get a check at our office - and cash it at walmart (since most walmarts have a jackson hewitt kiosk in them).
Or new thisyear - 'direct 2 cash' - the bank account mentioned above will send up to $7500 to the walmart money center and the taxpayer goes there with a pin number and picks up CASH.
And yes there are LOTS of things they don't pick up on - married or single - no way for them to know really.
And kids do come and go, dependents come and go, I see it all the time and it's legit most of the time.
MANY divorced people take turns claiming the kids for example.
Or a kid returns home to the nest and is now a dependent.
If no one will bother to staff the cash register at what point do you stop calling the patrons thieves?
It's the responsibility of the IRS and government agencies to prevent fraud and they simply don't bother. The #1 category of identity fraud is IRS tax fraud. The amount of fraudulent refunds paid by the IRS in the last 5 years already exceeds the cost of the entire second appropriation for the War in Iraq. 5 Billion dollars in a single year (2013) alone. That is projected to be $21 Billion in the year 2017.
The IRS receives over 50 million fraudulent returns each year yet, they don't bother to compare tax returns to the associated W2 or 1099 forms. They even send multiple refunds to the same PO Box addresses in the form of untraceable prepaid Credit cards! They also don't compare your present return to your last return to see if it's consistent. 1 child last year - 7 children this year, the computers don't see it and don't even look for it. What stands out is your mileage deduction - ooh! how unusual you commute 40 miles to work. Better audit that cheater.
You get the system you pay for and we pay dearly for this one.
