Tax Alerts for Fraudulent Tax Returns

Posted on July 5, 2021

Tax Alerts for Fraudulent Tax Returns

Some taxpayers complain about taxpayers, some patiently wait for initiatives by the government to reduce tax restrictions and some try to use tax fraud to steal funds from the IRS. Cases of tax fraud, tax evasion, tax debt and unfiled tax returns have been growing in the past years. Taxpayers, therefore, need to be very careful while sharing their financial information and in dealing with tax professionals and companies. Tax alerts brings recent cases of tax theft that ran into millions of dollars.

Tax Alerts: Tax Theft from Prison

Can prisoners steal money from the IRS? Alerts for tax theft from prison sound bizarre, but it is true. A prisoner in a New York prison filed false tax returns to seek as much as $890 million in tax refunds. The 48-year old prisoner has been sentenced to 10 years in prison. Officials say he filed many false tax returns during 2006 to 2010 while in different state prisons. He even received $327,456 in tax refunds once from the IRS, but the prison officials intercepted the check and returned it to the IRS.

The returned check for the refund made the IRS investigate into the tax fraud. It was revealed that the prisoner, Ronald Williams, had filed many bogus returns claiming millions in refunds. He had filed 11 false tax returns and helped another prison inmate to file a bogus tax return.

Such fraud in tax alerts the authorities of the possibility of carrying out a tax fraud even from the most unlikely of places.

Tax Alerts: Multimillion-dollar Tax Fraud in Oregon

A 25-year old woman filed fraudulent tax returns and allegedly received a whooping $2.1 million in tax refunds from the IRS. The Oregon woman, Krystle Marie Reyes, used tax preparation software to put the false figure of $3 million as her income when filing individual tax returns for 2011. She was arrested and is now facing a court trial. These alerts for tax fraud cases update taxpayers about tax scams happening around the country so that they stay aware of the magnitude of tax fraud.

Many taxpayers who have no former record in tax fraud or crime file fraudulent tax returns to claim big refunds. Because this tax crime can be easily operated and does not involve violence, people find it an easy way to make quick money. These tax alerts inform taxpayers of the various cases of fraudulent filing of tax returns, its repercussions and the importance of keeping financial data safe.

Failure to fulfil tax obligations is another matter, but cheating the IRS off tax money is an offense that is punishable by law. Apart from individuals filing false returns for a quick gain, many times scammers file false returns on behalf of taxpayers. These tax alerts reminds taxpayers to stay safe from tax scammers and fraudulent filing of tax returns.