Tag Archives: Tax fraud

Postal Workers Caught in Tax Refund Fraud

usps-truck

A ring of criminals operating out of the Dominican Republic have been running a massive income tax refund scam in which billions of false income tax filings have cost the taxpayers billions of dollars in losses. In an article in The Wall Street Journal we see the following information:

Between October 2010 and June 2011, the IRS received phony tax returns based on stolen Puerto Rican identities that would have led to the disbursement of $5.6 billion to alleged fraudsters, two of these people said. It is unclear how much money the IRS ultimately sent but one person familiar with the matter said an estimated $2 billion in checks was distributed.

Bronx mail carrier Robert Anthony Warren and at least two other USPS employees have been convicted and are doing prison time for their part in the scam. Back in September five men were also convicted of participating in the same scam and sentenced to between 40 and 98 months in prison, while also being ordered to pay a whopping $12 million in restitution. Good luck recovering any of that cash there. With all of these arrests and convictions, has the oh-so-competent federal government shut down this scam for good? Not quite, as can be seen in a statement from the Manhattan U.S. Attorney Preet Bharara, whose office was among the first to investigate the group: (emphasis added)

“What we have uncovered may very well be the tip of the iceberg,” said Manhattan U.S. Attorney Preet Bharara, whose office was among the first to investigate the group. “It’s a massive fraud.”

With a federal government that is running up trillion dollar deficits faster than the Roadrunner rocketing past the outgunned Wiley E. Coyote in cartoon-land,  as the federal bureaucracy grows bigger by the minute….so increases these numbers of incidents that highlight their incompetence and dysfunctionality. In the meantime, Senate progressives are currently working tirelessly (yes.. sarcasm intended) to rig up a massive $42 billion-dollar-bailout of the USPS UNION pension fund under the guise of…. reform.  From the thieves that are scamming the taxpayers from the Dominican Republic through fraudulent tax refund checks, to today’s Senate Socialists giving their Democrat-supporting labor [USPS] Unions $42 billion tax dollars, America is being robbed blind on a daily basis, in more ways than one. Americans should keep this in mind as they head to the voting booth in November.

Illegals Bilked Taxpayers for $4.2B Last Year by Exploiting Tax Code

Illegally entering America while breaking Federal Immigration laws and dropping illegal anchor babies appears to be a lucrative business in America today. In an article from The New American, we see just how much this act of criminality is costing hard working, tax paying Americans today:

The Treasury reported in July that the Internal Revenue Service coughed up $4.2 billion in child tax credits for illegal aliens in 2010.

At a time when politicians are talking about the need for government to reign in spending and reduce yearly deficits by taxing Americans more and cutting sevices in government-funded programs for our citizens, it is nothing short of ludicrous that we are funding the current illegal criminal baby-makers and their off-spring through the manipulation of our tax code that is 100% approved by the U.S. Government! How can this be possible?

The question is how illegals get away with gaming the system. Answer: Because all wages, even those earned illegally, are taxed, but since illegals cannot get valid Social Security numbers, the government needs a way to track their income and collect what is due. It does so using individual taxpayer identification numbers (ITINs), which, again, are for those taxpayers who cannot obtain a Social Security card.

So, politicians themselves have written a loophole into our tax code that siphons off tax dollars to illegal criminals. If that doesn’t piss off Americans who are today being told to give up more of their paychecks during the current Obama-recession (through his phony American Jobs Act, which is just tax increases to pay off Union vote begging cronies and big government corruto-crats), I don’t know what will. If you just can’t believe that last statement? Here is the loophole:

These ITINs create the problem, and it’s a big one, according to the Treasury: The booty claimed by illegals using the ACTC has skyrocketed from $924 million in 2005 to $4.2 billion in 2010.

According to a Treasury report, “ITINs are issued regardless of immigration status, because both resident and nonresident aliens may have a U.S. filing or reporting requirement under the Internal Revenue Code.”

“ITINs( individual taxpayer ID numbers) are for Federal tax reporting only and are not intended to serve any other purpose. Even income obtained illegally is subject to income taxes. Therefore, the IRS issues ITINs to help individuals comply with the U.S. tax laws and to provide a means to process and account for tax returns and payments for those not eligible for SSNs. An ITIN does not authorize an individual to work in the United States or provide eligibility for Social Security benefits or the Earned Income Tax Credit (EITC); however, the IRS currently processes claims for the Additional Child Tax Credit (ACTC), a refundable tax credit, filed by taxpayers with ITINs.”

But it gets even nastier when we see that NON-TAXPAYING ILLEGALS are getting U.S. tax refunds and credits. What really makes this taxpayer abuse even more disgusting is that they have been aware of this fraud for over a decade, yet refuse to take any kind of action against it to protect the U.S taxpayers!

The Treasury reported that illegals are fraudulently using the Additional Child Tax Credit, which was created to give more money to taxpayers who cannot claim a full tax credit for children.

The credit can be claimed even if a filer does not pay income tax:

The ACTC is the refundable portion of the Child Tax Credit (CTC). The CTC can reduce an individual’s taxes owed by as much as $1,000 for each qualifying child. The ACTC is provided in addition to the CTC to individuals whose taxes owed were less than the amount of CTC they were entitled to claim. The ACTC is always the refundable portion of the CTC, which means an individual claiming the ACTC receives a refund even if no income tax was withheld or paid. As with all refundable credits, the risk of fraud for these types of claims is significant

The treasury report goes on to summarize how this appears to be a pattern of systemized fraud enabled by our very own government as a way for illegals to scam the taxpayer:

“The payment of Federal funds through this tax benefit appears to provide an additional incentive for aliens to enter, reside, and work in the United States without authorization, which contradicts Federal law and policy to remove such incentives. ITIN filers are much more likely to claim the ACTC than other individual taxpayers. We found that in Processing Year 2010, 72 percent of all ITIN filers claimed the ACTC, while only 14 percent of non-ITIN filers claimed the ACTC

Numerous politicians, including Barack Obama have been seen in the national media lately calling for reforming our tax codes, and to raise taxes on Americans to pay for their recent explosion of nasty, ludicrous big government debt-spending. How about cutting off illegal criminals from the taxpayers purse as seen right here, in this blatant example of big government taxpayer fraud against American citizens?