Tax fraud in Individual Taxpayer Identification Number program

[ThinkToday]

This is the kind of stuff that makes my blood boil.

http://www.foxnews.com/politics/201...s-are-needed-to-detect-fraud/?test=latestnews

Summary: FWIW, ITIN is Individual Tax Identification Number

154 Mailing address used for 1,000 or more ITIN assigned
1 Phoenix address used for 15,795 ITIN assigned
10 addresses used for 53,994 tax returns totaling $86.4 million
1 Atlanta address for 23,994 tax returns totaling $43.6 million
1 Oxnard, CA address for 2,507 tax returns totaling $10.4 million
10 bank accounts receiving 23,560 tax refunds totaling over $16 million
1 bank account receiving 2,706 tax refunds totaling over $7.3 million

I wonder how many of these people are "voters" that want to keep the system the way it is. I bet they aren't in favor if voter IDs either.

 

[lisab]

What is the connection between tax fraud and voter ID rules?

 

[ThinkToday]

What is the connection between tax fraud and voter ID rules?

As the article states, the ITIN system is often used for non-citizen tax payers. The fraud here is, IMO, beyond outrageous. Since non-citizens are one of the user classes of ITIN and these folks in the article clearly don't have a problem falsifying a government document, it would seem to me they have a vested interest in keeping the system the way it is. As such, I would think they would be inclined to vote accordingly. IMO, without good Voter ID protections, we run the risk of criminals voting to maintain their way of life. In any event, the utter failure of the IRS is the issue at hand. I don't say all cheating is by illegal voters, but clearly the illegal ITIN system puts people on the path of loosing voting rights as they become felons.

 

[russ_watters]

I'm in favor of voter ID laws, but that's a stretch, to put it charitably.

 

[chemisttree]

I don't see why ITINs are even given out or that there is an group in the IRS that is tasked with ITIN applications. If someone is here legally and needs a number, that should be part of the package of applications required to obtain a visa. It should be handled by Immigration, not the IRS. The fact that there is even a group of IRS agents tasked with examining applications points to a problem in the system. The IRS should never need to examine an application for ITIN because there should never be a need to apply for one... those that need them legally will already have them and those that need them otherwise are here illegally.

 

[edward]

There is another scam using stolen SS numbers.

The scam is so rampant that thieves are apparently sending in false returns in bulk without even bothering to change the mailing address on the returns. The inspector general said it found one residential address in Lansing, Michigan that was the source of an astonishing 2,137 tax returns, and to which the IRS directed more than $3.3 million in potentially fraudulent refunds.

http://finance.yahoo.com/news/tax-scam-irs-pays-billions-151756498.html

Debit cards can be purchased form retailers and used to have an instant refund directly deposited.

Among the report's other findings, was that the "use of direct deposits, including debit cards, to claim fraudulent tax refunds increases the risk that the IRS will not detect identity theft. The IRS continues to allow multiple direct deposits to the same bank account."

This is as bad a s the fraudulent tax returns sent from prisons. With all of their computer technology the IRS still does stupid things. For instance:

The thieves know that the IRS does not verify the employer W-2s sent with the return until after the refund is issued.

http://www.cnn.com/2012/03/20/us/tax-refund-scam/index.html

 

[edward]

I don't see why ITINs are even given out or that there is an group in the IRS that is tasked with ITIN applications. If someone is here legally and needs a number, that should be part of the package of applications required to obtain a visa. It should be handled by Immigration, not the IRS. The fact that there is even a group of IRS agents tasked with examining applications points to a problem in the system. The IRS should never need to examine an application for ITIN because there should never be a need to apply for one... those that need them legally will already have them and those that need them otherwise are here illegally.

Never the less the IRS has been processing the ITINs. And now this:

Specifically, the report notes that IRS procedures appear to discourage employees from flagging potentially fraudulent ITIN applications, and that IRS management went so far as to disband a review group with proven success at identifying fraudulent activity.

http://waysandmeans.house.gov/News/DocumentSingle.aspx?DocumentID=306103

Bold mine