Tag Archive tax fraud

IRS Makes Foreigners To Conduct Businesses In USA

Over the past year, the IRS has been clamping down on tax fraud cases, making it very hard for people with ill intentions to actually conduct their businesses. To tart with, the pace with which tax refunds are being submitted has been increased to allow for time to handle tax fraud cases. This in essence means that the IRS is looking at the avenues through which identity thieves can get to defraud the government. The IRS not only made it difficult for the identity theft victims and fraudsters to get their refunds but it also made it much more difficult for Americans who live abroad and foreigners to mail in their fraudulent refunds. The IRS seems to have something else in mind; to them, they seem to be moving towards decentralization of the whole system. It is moving towards the creation of a specialized identity theft unit, which is set to operate within 21 separate functional areas.

For a while now, some of the laws that have been passed by the congress have had the net effect of making the process of doing business abroad for American much more strenuous that it was. As if this was not enough, the congress and the IRS are back at it again. This time, they are in the process of making it much harder for the foreigners to conduct business in the USA. Whether this is a good thing or a bad thing remains to be seen over time. However, as the IRS and congress harden their stance on taxation issues and fraud, the pinch is being felt by the normal American who has the small and medium sized business. With the new laws the process of acquiring a tax certificate has become much longer and more of a hassle. In most cases, the law requires that the applicant sends his or her passport to the IRS for extended periods, during which period the IRS processes the paperwork. However, this does not mean that the new laws do not have their advantages. One such advantage is the fact that the process of application has been blown wide open giving applicants more avenues to apply. On the other hand, these laws have also made ITINs (International Tax Identification Numbers) expire after five years. This means that every five years, businessmen across the country will be required to go through the whole process over again if they are to remain tax compliant. This requirement does not only affect foreigners investing in the USA, it also affects those Americans who are willing to invest out of the country.  Just another little effort by the IRS does to make staying legal as difficult as possible.

Even then, the average American and the business community should be happy with the new requirements since it means that the government will be able to net previously excluded tax avenues. The result is that the government will be better able to handle its financial commitments and provide the relevant services to the populace.

Tax Fraud Case| 150 Bogus Tax Returns Filed

A wise man once said that there are two things human beings cannot fail to encounter one they are born; taxes and death. True, human beings across the world have come up with ingenious ways of trying to skip paying taxes. However, like with many things that humans try to legally avoid, there are people who use fraudulent means to keep themselves from paying taxes. In Hillsborough County, the ugly head of the fraudulent tax persons has been reared once again. Sometime back the IRS federal agents took custody of two women who were suspected of identity theft. These women also cashed in on tax refunds that were worth over a million dollars. The women were apparently shocked to realise that there long standing tax fraud schemes had been uncovered. However, such is the vigilance with which the government is pursuing the tax fraudsters that they do not know what hits them when it does.

Cpl Bruce Crumpler who works at the Economic Crimes Division of the Hillsborough County Sheriff’s Office put is so candidly, “They always believe this day will never come. They always have that look on that face when they’re caught, like hand caught in the cookie jar.” This is a very true statement that affects quite a large number of the tax fraudsters. To them, it is bliss time until the government gets on their tail. While it is true that very few people actually plan for the eventuality that they are caught, even fewer people expect that the fraudulent scheme will matter when they are eventually caught. It is not uncommon for most of these people to claim that since tax fraud is a victimless crime, then the punishment that is meted out should not be harsh.

The fraudsters, Cullens and Hawls have been accused by the IRS of colluding with another friend of theirs by the name Kenyon Williams in California, to file just about 150 bogus tax returns, which were used by them to claim in excess of a million dollars in refunds. What made the case a tad bit more interesting is the fact that the women were stealing the identities of patients from both University Community Hospital and the US Naval Hospital in San Diego.

Of course as it is expected the hospital came out guns blazing claiming to be shocked at the actions of the women and their accomplice. There statement, which says in part; “At Florida Hospital Tampa, our first priority is taking care of our patients and ensuring their safety, security and privacy at all times. We take any breach of personal healthcare information very seriously. Unfortunately, we recently learned that personal information relating to 45 of our patients had been compromised in January 2012” seems to be a show of force and aimed at showing the world their support for the arrest. Just this year in April, the same hospital is said to have implemented an electronic health records system that is meant to improve the privacy and security of the kind of information that is normally entrusted to the hospital’s database.

 

H&R Block Manager Arrested for Identity Theft

Last month I wrote about IRS agent stealing tax payers’ information to file bogus tax returns and this month another similar case has come to light.  In a recent incident, H&R Block manager, Damon Charles Dubose, 38, of North Hills, Southern California was arrested for stealing identity of tax payers.

According to complained filed against Dubose, he prepared bogus tax returns in the names of past customers.  Intention was to collect tax refunds and credits, according to prosecutors, and then use the popular H&R Block Emerald cards to withdraw the funds from ATM.

Did Dubose simply walked up to ATM and collected the refund?

Yes, off course.  He was seen by the local patrolling officer loitering near the ATM’s of three different banks and guess what?  He was wearing pantyhose over his face as well as a scarf and beanies.

Did he actually withdraw the funds from ATM is not clear but authorities found $2960 in Dubose car and another $6900 in Dubose girlfriend home.   In addition to cash, official found hand written information of many tax payers.

Is Dubose behind bars?

Not for now.  He was released on bond and is scheduled to appear in court on April 30th.