Blogs

Attempting to steal the identities of taxpayers to file false returns and claim huge refunds is a tax crime most taxpayers will encounter during tax season. Identity theft efforts are made both online and offline by identity thieves.Tax frauds use fake websites and unsolicited emails that are exact replicas original IRS and financial institutions to... Continue reading →

The top five tax scams that rocked the country in 2012 were identity theft, i.d. phishing, tax preparer fraud, hiding income offshore, and “free money” promises from fake IRS solicitations.Identity theft still rules the number one position on the IRS’ Dirty Dozen tax scams. For 2012, identity theft remained the most prevalent tax scam of... Continue reading →

The U.S. federal budget deficit is lower than it was in 2012. The deficit grew February 2013 by $203.5 billion, the Treasury Department said, but it is still lower than 2012.This February, the gap was $28 billion less than what it had been the same time a year ago. If the first five months of... Continue reading →

Analysts believe that in 2013 the budget deficit will shrink to $845 billion, which will be the lowest during Barack Obama’s presidency. Even thought that might bring a sigh of relief to many, the relief is short-lived because the deficit is expected to rise again after a few years.The cost of health for the elderly,... Continue reading →

With the introduction of the Foreign Account Tax and Compliance Act (FATCA), the IRS has made a strong move to recover hidden money in offshore accounts. Under FATCA, U.S. taxpayers with specified foreign financial assets that exceed a certain threshold are required to report those assets to the IRS.To enforce compliance, the IRS has made... Continue reading →

The fact that the rich are now paying higher taxes comes as a surprise because most of us do not think of the rich as being abused in a tax system that notoriously favors the wealthy.President Barack Obama is reluctant to raise taxes for any tax bracket, except the rich, “I am prepared to do... Continue reading →

Identity theft is being conducted not only by gangs, but by seemingly unlikely people, such as store owners. A Washington D.C. barbershop owner was found guilty conducting an elaborate identity theft and tax fraud scheme. He and his accomplices stole the tax identities of deceased taxpayers, drug addicts, and others to file more than 7,000... Continue reading →

“The queen of the IRS tax fraud,” Rashia Wilson, was found to have filed 220 false tax returns during 2009 to 2012. She received $1.3 million in false refunds from the IRS. With time, she grew so confident that she even posted a picture of herself on Facebook with bundles of cash and brazenly called... Continue reading →

Tax fraud is growing in spite of efforts made by the IRS and law enforcement agencies. In a recently busted fraudulent tax filing scheme, it was discovered that tax fraudsters were also using false tax credits to get refundable tax credits.A refundable tax credit not only reduces a tax liability to zero, but it can... Continue reading →

A report by the U.S. Treasury Department’s Inspector General for tax administration says tax fraud of false tax returns filed by prison inmates have more than doubled in the last two years. In 2012, the IRS detected more than 173,000 false tax returns filed by prison inmates. In that same year, the IRS stopped prison... Continue reading →