Tax Identity Theft – Miami, Tampa Top Cities for Tax Fraud – Refunds will take forever
Tampa and Miami were mentioned as the top cities where potentially fraudulent 2010 tax returns were filed last year.
Nationally, thieves are suspected of using the identities of 2,274 children, 105,000 dead people and almost 1 million people who don’t normally file returns to collect $5.2 billion in refunds.
The Inspector General’s analysis found that incidents of identity theft jumped 155 percent last year.
“The report really underscores just how bad a problem ID tax fraud is in Florida and around the country,” said U.S. Sen. Bill Nelson, who asked the Treasury Inspector General last year to investigate the extent of the problem. “It’s become an epidemic that’s costing law-abiding U.S. taxpayers billions of dollars. And it’s one we’ve got to fix. That’s why I’ve filed legislation aimed at putting a stop to these fraudsters.”
The IRS disputed some of the watchdog’s findings, including estimates of $21 billion in potentially fraudulent tax returns in the next five years.
Plantation IRS spokesman Mike Dobzinski said Monday that his agency “along with the Department of Justice, has significantly stepped up its activities to pursue those who attempt to steal identities to commit tax fraud.” That will help cut down on future abuse, he said.
But Rep. Boustany was concerned that the IRS wasn’t spotting suspicious multiple filings at one address.
In addition to the Belle Glade home, an Orlando post office box allegedly received $1,088,691 for 703 suspected fraudulent tax returns filed, he said.
Even though the IRS is putting in systems to spot ID theft, it will take years before all the checks and balances are put in place to curtail the problem. The IRS computer programs are not sophisticated enough at this point to deter the sheer volume of fraud.
For those needing there refund checks, be patient. do not bothering going in to the IRS offices. Everything can be done on line and is actually faster.
What to do if you are a victim:
Your identity may have been stolen if you receive a letter from the IRS stating or learn from a tax professional that …
1. You filed more than one tax return or someone has already filed using your information.
2. you have a balance due, refund offset or have had collection actions taken against you for a year you did not file and or,
3. you received wages from an employer you have not worked for.
If you receive such a letter from the IRS and you suspect your identity has been stolen, respond immediately to the name, address, phone number or fax listed on the IRS letter or contact the IRS to determine if the letter is a legitimate IRS letter.
If you become the victim of identity theft outside of the tax system or believe you may be at risk due to a lost/stolen purse or wallet, questionable credit card activity or credit report, etc., you are encouraged to contact the IRS at the Identity Protection Specialized Unit, toll-free at 1-800-908-4490 so we can take steps to further secure your account.
You will need to fill out the IRS Identity Theft Affidavit, Form 14039. Please be sure to write legibly and follow the instructions on the back of the form.
Remember, it is useless to going to an IRS office for help. that does not speed up the process.
