The Treasury Inspector General's Office estimates that the US Treasury is defrauded between $14 and $16 billion each year by obtaining fraudulent earned income credit tax refunds. Each year 30 million tax filers share a $60 billion dollar pie called Earned Income Credit. Basically, if you earn between $3,000 and $45,000 and have a dependent child, you qualify for a tax credits between $300 and $7,500.
How The IRS Is Defrauded
Jane Doe claims $13,720 income from an imaginary cleaning business on her tax return. Since Jane doesn't have a business, she doesn’t need to purchase any brooms, dust pans, cleaning supplies or mops. For Jane’s efforts, she will qualify for federal tax credits of $6,600. Before the US Treasury deposits a tax refund of $4,900 into her bank account, they make a deposit into Jane Doe’s social security retirement account for $1,700. From start to finish, Jane can complete her phantom tax return using phantom income in 15 minutes!
I contacted the FBI and informed them that tax companies defrauded the US Treasury of $3.7 billion during the 2012 tax season. Unscrupulous tax preparers don't hesitate to file bogus EIC tax returns defrauding the IRS of $6,000 because they take their $200 fee right off the top. Tax companies will successfully process 800,000 tax returns that claim phantom income and expenses in order to increase their 2012 income tax refunds.
I issued a press release entitled "Tax Technology Would Save IRS $3.7 Billion in Next 60 Days". The article had 881 readers. This included nearly 75 from the counties of France and Germany. Why would those countries be so interested in learning about tax fraud technology in the United States?
By utilizing computers and electronic bank deposits, anti-American groups can conduct fraud from any place in the world.
Potential American Terrorists Tax Frauds
Est. Fraudulent Earned Income Tax Frauds
Est. American Terrorists for Every 100 Tax Frauds
Est. American Terrorist EIC Tax Frauds
X Average EIC Tax Cash Refund
Est. Cash Paid to Terrorists
$5,000 Cash Refund or 10 IED’s
The IRS should consider offering EIC tax frauds the choice of receiving $4,900 cash or 10 IED's. Terrorists shouldn't have to be burdened with going to the bank and then having to negotiate the purchase of improvised explosive devices.
If terrorists obtain 40,000 fraudulent EIC tax refunds they will receive approx. $200 million. According to Wikipedia the avg. cost of an IED is $500. As a result of the IRS ineptness at preventing tax fraud, the US Treasury may have just funded 400,000 IED's. Why should American troops potentially suffer?
I believe the FBI can successfully identify tax frauds who are funneling money to fund terrorism. The easiest frauds to identify are self-employed 's who don't have any business expenses. Identifying terrorists can be done without any profiling. The only requirement is committing tax fraud. The FBI should investigate whether bomber Tamerlan Tsarnaev received funding via fraudulent tax returns.
Why is the IRS Afraid to Use Technology to Protect Troops?
The Internal Revenue Service needs to identify anti-American groups that could be funding terrorism. The Supreme Court has said that if you willfully defraud the US government by filing false tax returns you can be deported. My company has offered to test ALL 27 million EITC tax filers. Based on the beta test we completed, we can test 30 million in 30 min. Why is the IRS afraid to utilize technology that could prevent harm to American troops?