Over 5 Billion Dollars lost to Identity Thieves filing false 2011 Returns
There is a filing gap that thieves take advantage of to steal our tax dollars. Tax returns can be filed as early as January 15th, but businesses and institutions do not report to the IRS until March 31. Thus, the IRS does not know there is a problem until it is too late.
IRS also has systems problems. They do not seem to have the proper red flags in place to detect even obvious fraud. There were 21,000 returns filed to one address in Michigan which should have triggered an alert.
Nearly all of the false returns were filed electronically. The IRS needs to expand their Identity Protection Personal Identification Number (IP PIN) program to ALL tax returns filed electronically.
IRS Identity Theft Affidavit IRS Form 14039
It’s our money. Let’s make it harder to steal.