According to the inspector general’s report issued from CBS News, last year the IRS refunded $4 billion in fraudulent tax returns to identity thieves last year. So people using stolen identities are really hitting it big! The scary part is that most of the thieves are not even residing in the U.S. According to the study the IRS sent a total of 655 tax refunds to a single address in Lithuania, and 343 refunds went to a single address in Shanghai. These are not the only countries attempting this crime. Also on the list were Bulgaria and Ireland.
As for the top U.S. city to receive fraudulent returns…Miami wins! Honorable mentions were Chicago, Atlanta, Detroit, and Houston to receive the most fraudulent tax returns in all of the U.S cities.
Florida is a huge target for identity theft, mainly because of the number of senior citizens residing there. Seniors and young people can be targets for identity theft, because neither meet the income requirements to file a federal tax return. Nearly 38,000 potentially fraudulent refunds, totaling $147 million, were sent to addresses in Miami, the report said. Among individual homes, one address in Orlando received 580 tax refunds totaling $870,000, the report said. Another Orlando address received 291 refunds totaling $466,000.
Additionally, the IRS issued 141,000 refunds last year to people using stolen taxpayer ID numbers, which were used by foreign citizens who earned money in the U.S. Those refunds totaled $385 million, according to the report.
The IRS has been cracking down and introducing new bills that will be tough for the criminal act by issuing penalties for the fraudulent filers. The IRS is attempting greater efforts in issuing the correct tax payer with their refund within 90 days of their filing.
The IRS is trying and at least acknowledges these crimes are everywhere, and are making crucial changes to oblige.
However, if you feel that you have been a target of identity theft and need back tax help, our tax attorneys can assist you with putting the pieces of your life back together. Many people come to us with a history of their identity being stolen each year and look to us for help. Some people who are entitled to a refund from the IRS, but because their identity has been stolen time and time again, end up receiving tax levies and wage garnishments and urgently need a tax attorney to assist them. We assure you, we have tax attorneys on staff that will help to reduce those tax debts and hopefully get your tax refund that you are entitled to. Proper paperwork and proof of identity are required.