$4 billion: Bogus tax refunds a growing problem

Return To Article
Add a comment
  • Mark B Eureka, CA
    April 11, 2014 4:05 p.m.

    I claim no special knowledge of tax fraud, but I think that if a flat tax were adopted tomorrow, the effort by lobbyists to make changes in the system to aid wealthy taxpayers in their quest to pay as little tax as possible would begin the same day.

  • Schwa South Jordan, UT
    April 11, 2014 1:35 a.m.

    Remember when Republicans told us that raising income taxes on the rich would only bring in $700B over a decade, which didn't mean very much in terms of the federal budget? It's funny how ideology shapes headlines.

  • DN Subscriber Cottonwood Heights, UT
    April 10, 2014 10:40 p.m.

    "Income tax" used to be used to fund essential government programs. Now it is nothing more than confiscation of earnings from people who work and transfer of their wealth to people who do not work, or in worse cases like this transfer it to outright criminals!

    Several solutions:
    End "refundable" tax credits entirely, period.
    Throw crooks in jail.
    Have IRS agents investigate actual fraud cases, not working to find excuses about how to delay tax exempt status for conservative groups.
    Enforce our immigration laws, to end fraudulant "refunds" to people who did not pay taxes, or who claim multiple non-existent children and get checks sent to a foreign country.

  • cjb Bountiful, UT
    April 10, 2014 4:50 p.m.

    Solution = Set your number of deductions so you don't get a refund from the IRS at the end of the year.

  • anotherview SLO, CA
    April 10, 2014 3:50 p.m.

    Why is Florida the hub for medicare and tax refund fraud?

    Two things we could do to help combat/reduce this type of fraud:

    Rather than cutting the IRS budget, we need to make sure they have the employees and tools necessary to combat fraud.

    The IRS needs to verify the employer's W2 sent with the tax return BEFORE issuing the refund.

    No matter the tax system, there will be people committing fraud and a need for people to collect/enforce the tax system.

  • Fitness Freak Salt Lake City, UT
    April 10, 2014 2:45 p.m.

    At the risk of sounding politically incorrect - I'll say what most people already KNOW. Most of the identity fraud is being perpetrated by illegal trespassers.

    Going further - I know (through personal contacts)that MANY illegal trespassers file tax returns with bogus, or stolen SS #'s claiming EIC (earned income credits),get a "refund" check sent to them, - then move to a new address. Most likely starting the same stuff all over again.

  • rvalens2 Burley, ID
    April 10, 2014 2:27 p.m.

    One quick way to kill the fraud ... go to a flat tax/fair tax system.

    With Americans no longer having to file, the fraudulent refunds wouldn't happen. It would also do away with the IRS. Any still necessary IRS functions, could then be absorbed by the Treasury Department.

    Eliminate the fraud, do away with the IRS and go to a tax system that is completely above board. What could be better?

  • AzPete Mesa, AZ
    April 10, 2014 2:14 p.m.

    Under current law, taxpayers can receive refunds for thousands more than they have paid in - an open invitation for fraud. If IRS/Congress would make all tax credits non-refundable, it would eliminate most of the fraud. You could use credits to reduce or eliminate your tax liability, but not less than -0-. If a taxpayer could not get back more than they actually paid in through withholding or estimated payments, the fraudsters would have to devise a new game plan.

  • lost in DC West Jordan, UT
    April 10, 2014 1:27 p.m.

    How is the IRS supposed to catch these guys when they are spending all their time investigating tea party and other conservative groups?

  • RichardB Murray, UT
    April 10, 2014 1:05 p.m.

    The IRS by law is suppose to report unauthorized use of a social security number to the numbers owner. But unless your name is Eric Holder, they have not been doing this under the Obama administration.

  • Thid Barker Victor, ID
    April 10, 2014 11:50 a.m.

    Folks, this is chump change compared with what we will see in future Obamacare fraud.