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.