earned (2)

The IRS pays individuals an average of $6,200/yr for operating imaginary businesses. According to a report issued by the Treasury Inspector General for Tax Administration, the IRS is defrauded up to $16 billion annually by tax filers claiming Earned Income Tax Credits on their tax return.  Randall Sorensen, CPA has developed technology that will identify one million phantom businesses and recover $960 million for the U.S. Treasury.

Technology called the Phantom Business Identifier (PBI) developed by Randall C. Sorensen, CPA, will identify one million imaginary businesses that cost’s honest Americans $7 billion annually.  

Statistics reported on www.irs.org show that during the Great Recession 500,000 business owners without children permanently closed.  In contrast, at the worst possible time to launch a business, taxpayers with children and no money started 800,000 new businesses.  Why would anyone want to jeopardize the security of their family when their odds for success are only 50%?  The answer is simple…. they didn’t!

Here is how tax frauds have been pulling the wool over the eyes of the IRS.  Jane Doe the mother of two, claims income of $14,700 from an imaginary cleaning business.  Since she doesn’t really have a business, Jane doesn’t need to purchase any brooms, dust pans, cleaning supplies of mops.  For Jane’s efforts she will qualify for federal tax credits of $7,100.  Before the US Treasury deposits a tax refund of $5,000 into her bank account, they make a deposit into Jane Doe’s social security retirement account for $2,100. From start to finish, Jane can complete her phantom tax return using phantom income in 15 minutes!

Randall Sorensen, CPA has practiced as a financial forensic expert for over 25 years. Three years ago Mr. Sorensen pitched his idea to the IRS.  The IRS literally tore apart the proposal and expressed a high level of interest.  One month after kicking the tires the IRS rejected the software by explaining that they already had a prototype and they didn’t have any money.  Thanks to the congressional hearings on targeting tax exempt entities, Congress confirmed the IRS wasn’t being truthful.  Specifically, the IRS entered into a software agreement with Strong Castle to spend up to $500 million at the same time they told Sorensen they didn’t have any resources.

Mr. Sorensen stated “a double standard exists within the walls of the IRS.  They severely punish taxpayers who lie but fail miserably when IRS employees fail to tell the truth”.   

Due to severe IRS budget cuts, Mr. Sorensen has offered to test 30 million tax returns for free.  Sorensen states, “The IRS won’t be able to use the excuse of being broke.  Rather than terrorizing honest taxpayers, the IRS needs to send a clear message to tax criminals that they will be caught and could face prosecution by the Department of Justice. Further, tax software companies must be vigilante in identifying fraud being committed at the kitchen table”.

Randall Sorensen, CPA has been practicing accounting for over 30 years and has specialized in forensic accounting for over 25 years. Randall Sorensen’s accounting practice is located in Phoenix, Arizona. Mr. Sorensen can be reached at 602-320-3183.

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Dear Chairman Issa:

 

Last October the IRS Office of Procurement called and said that (3) high level IRS officials were reviewing the merits of my intellectual property.  In September of 2012, I submitted a “Proposal to Perform Earned Income Credit Compliance Audits on 6.5 Million 2012 Self-Employed”.  Lisa Mordhorst of the Office of Procurement assured me this would only happen if there was a high amount of interest by the IRS.  In the same month, the Whistleblower Office Director Whitlock closed a $2 billion fraud claim in just 8 days!   I believe both Directors Kearns and Whitlock committed honest services fraud.  Listed below is an overview of why they should be terminated:  

 

IRS Committed Fraud

Government employees have the fiduciary duty to the people they serve to provide them with the intangible right of honest service.  Director Kerns and Whitlock breached their duties.

 

Examples of Procurement committing honest services fraud:

  • Lied about already having same software in place (See p. 3)
  • Lied about lack of resources (See p. 3)
  • Lied about “real time” testing not being innovative

 

The last one is laughable. During the 2013 tax season the IRS was only able to verify 3% of income information before issuing 50 million refund checks.  I proposed charging the IRS $3/tax return. This would have prevented the US Treasury from being defrauded a minimum of $1 billion.  Based on 6.5 million tax returns that represented a savings of $154/tax return and a return on investment of +5033%.  After being rejected by the Office of Procurement I sent an email to the IRS on December 28th, 2012 and offered to WAIVE my $19.5 million processing fee.  The IRS told me that my email proposal could not be evaluated as submitted. Director Kearns was guilty of malfeasance by sitting back and allowing the US Treasury to be defrauded as much as $20 billion when a viable solution was available at a cost to the US Treasury of $0.

 

Examples of Whistleblower Office committing honest services fraud:

  • Former Acting Commmissioner Steven T. Miller lied in his June 20th 2012 memorandum when he said debreifings of whistleblowers would be the rule and not the exception
  • Director Whitlock failed to provide a response to a Congressional Inquiry submitted by Senator Kyl
  • Director Whitlock responded 44 days late to a Congressional Inquiry submitted by Congressman Schweikert (See p. 4)
  • Whistleblower Office refused to answer any questions regarding the status of my $1 billion whistleblower claim
  • WO closed a $2 billion whistleblower claim in just 8  days    

 

IRS Sting Operation

I anticipated being defrauded by the IRS so I set up a sting operation of my own. Specifically, I submitted a sixth whistleblower claim in September of 2012.  Here is how I set a trap for the Whistleblower Office:

  • Prepared amended tax returns for ex-wife claiming both children as dependents
  • Informed IRS that ex-husband fraudulently claimed head-of-household.  Father needed to provide a home for his children for 183 days.  The actual total was less than 5 days
  • IRS agreed and refunded ex-wife $8,337 within 60 days
  • Received letter from IRS saying investigation could take several years
  • IRS decided the Friday before Christmas to close my claim after only 44 days
  • IRS lied about conducting an investigation
  • IRS lied about the results of phantom investigation
  • IRS lied about attempting to collect delinquent taxes from ex-husband

 

Congressman Issa, the world now knows that the Internal Revenue Service has morphed into a fraudulent governmental agency.  Congress needs to hold additional IRS hearings to determine whether IRS Directors Kearns and Whitlock committed honest services fraud by lying to the public?   

 

Sincerely,

Randall C. Sorensen CPA CFF

 

cc:   Senator Alexander   

       Senator Cruz                                                  

       Senator Grassley      

       Senator Hoeven

       Senator Pryor

       Congressman Boehner

       Congressman Camp

       Congressman Crenshaw

       Congressman Gowdy

       Congressman Marchan

       Congressman Ryan      

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