Instant Tax Solutions Says Scam Costs IRS Billions in 2012
According to Instant Tax Solutions scam attempts have created a growing problem with the IRS. The agency has become a victim of the very frauds that it works to prevent.
Post Falls, Idaho (I-Newswire) October 19, 2012 - According to national tax services provider, Instant Tax Solutions, scam perpetrators have filtered into the IRS payout system. The team at Instant Tax Solutions warns taxpayers, that identity theft is an issue that goes beyond taking a name. According to Instant Tax Solutions, scams like this are now stealing tax refunds.
Fraudsters have found a way to assume other persons' identities on paper, says Instant Tax Solutions. Scam attempts often result in a payout before the taxpayer realizes that anything is amiss. The victims are left to prove their case to the IRS. Unfortunately, says Byron Pedersen of Instant Tax Solutions, scam perpetrators are getting more sophisticated at collecting required documentation that is needed to breeze through the refund system. This makes it difficult, at best, for the namesake of the refund to claim what was rightly theirs.
In 2012, the Inspector General estimated that white collar criminals would soak up over $21 billion is misguided refunds, reports Pederson of Instant Tax Solutions. Scam perpetrators have even gotten brazen enough to operate in bulk, often using the same address for hundreds - even thousands - of falsified tax returns. Instant Tax Solutions says scam attempts from one Michigan address cumulated over $3 million in ill-gotten gains. The same address was cited, after a review, as having received over 2,100 refund checks - all addressed to different taxpayers; no word on whether any of them were legitimate.
Says Instant Tax Solutions, tax scams must be stopped before our already fragile economy buckles under the added pressure. According to Instant Tax Solutions, a scam can be hard to thwart once the checks have been cut. Apparently, the IRS admits that once the funds clear, there is little hope of recovery. Instant Tax Solutions says scams like identity theft are causing a strain on the IRS's limited staff, especially in Florida, where affluent cities like Miami top the Agency's list of hot spots. According to Instant Tax Solutions, scam perpetrators also may target the retired population of the Panhandle.
Further, according to Instant Tax Solutions, scams are not always monitored as they should be. The firm points out that the IRS is not effectively using data that they should or already have access to. In 2010, the IRS paid over 1.5 million questionable recipients, says Instant Tax Solutions. Scam costs that year alone funneled over $5 billion from taxpayer pockets.
According to Instant Tax Solutions, scam attempts are getting more elaborate and taking advantage of the same technology that was developed to prevent crimes and make people's lives more convenient. For instance, according to Instant Tax Solutions, scam perpetrators are now utilizing direct deposit and debit cards to bilk the IRS for false returns. These modern day amenities are supposed to keep the American worker safe from losing money, says Instant Tax Solutions. Scams, like identity theft, however, have taken that security away.
There are, says Instant Tax Solutions, scams that might be prevented by simple software upgrades that would monitor, in real time, the number of addresses receiving tax refunds. Additionally, the same type of IT enhancements could flag accounts that intake more than a few refunds via direct deposits.
Instant Tax Solutions is a BBB Accredited tax relief agency in Post Falls, Idaho. The firm is recognized nationally for their extreme commitment to customer service and their money back guarantee.
For more information contact Instant Tax Solutions at www.instanttaxsolutions.com or call 888.387.4071
About Instant Tax Solutions
Instant Tax Solutions
Instant Tax Solutions
1700 5th Avenue Post Falls, ID 83854
Phone : (800) 219-0655
Published On:October 19, 2012
Print Release:Print Release
If you have questions regarding information in this press release contact the company listed above. I-Newswire.com is a press release service and not the author of this press release.The information that is on or available through this site is for informational purposes only and speaks only as of the particular date or dates of that information. As some companies and PR Agencies submit their press releases once per week,month or quarter, make sure to check the official company website for accurate release dates as our site displays the I-Newswire.com press release distribution date only.We do not guarantee the accuracy or completeness of information on or available through this site, and we are not responsible for or omissions in that information or for actions taken in reliance on that information.