Tax crimes Feed

Identity theft is bad enough, but when it's connected to your tax data, things can be particularly scary. Not only does a crook have personal information about you, but he or she can steal the tax refund you've been counting on. In some situations where your data has been hacked, you'll want to file a Form 14039, Identity Theft Affidavit, to let the inform the Internal Revenue Service that you think you may be a victim of tax-related identity theft. Now you finally can file that form online. IRS, FTC take ID theft fight further online: The IRS now will... Read more →


There are so many tax scams out there that it takes more than one post to cover them. Three posts, to be precise. This is Part 3 of the Internal Revenue Service's 2018 list of the Dirty Dozen Tax Scams. Your promised tax savings can be quickly washed away if you put your money into an abusive offshore tax shelter. This is it, a look at the final group of scams that crooks are using again this tax year to try to take our money. The final four schemes in this post, numbers 9 through 12, are like those in... Read more →


Cover photo from 2017 report Offshore Shell Games by ITEP and PIRG Offshore tax havens. The phrase immediate conjures up images of dubious financial guys who've traded in their high-powered jobs and three-piece suits for floral print shirts and umbrella-shaded drinks on a tropical beach, all funded by cash they stashed in island-based accounts, hidden from the U.S. tax collector. Sometimes that's true. Everyone knows by now of the scrutiny given to Cayman Island banks, as well as the hidden accounts revealed by the Panama Papers. But offshore in Internal Revenue Service parlance means any location outside United States boundaries.... Read more →


There are so many tax scams out there that it takes more than one post. Three, to be precise. This is Part 2 of the Internal Revenue Service's 2018 list of the Dirty Dozen Tax Scams. The four schemes in this post, numbers 5 through 8, are like those in the initial 2018 Dirty Dozen tax scams of 2018. They also are repeat (dis)honorees. That's because once crooks find something that works, they keep using it. And sadly, there are enough new victims out there every year to fall for it. Unless potential targets are warned. To do that and... Read more →


Those fake emails looking to steal your tax and personal data top the annual IRS scam list, but 11 other crooked tricks also made it, including fake IRS agents, sham charities and frivolous tax arguments (which are the only time anyone associates taxes with frivolity!). Highlights of each of the Dirty Dozen scams will be added as the IRS releases them, one a day over 12 business days, so keep checking back. Phishing once again makes the Internal Revenue Service's annual list of Dirty Dozen Tax Scams. When it comes to tax scams, the late and loquacious MLB Hall-of-Famer Yogi... Read more →


You open the package expecting, well you don't know what, but probably not 500 cockroaches. That, however, is what happened to a mail thief. Crooks will steal just about anything. And criminals who focus on U.S. Post Office boxes tend to increase their activity around this time every year. The reason? Tax refunds. Tax-related mail theft: Every February, people are either getting refund checks from the U.S. Treasury or they're receiving tax documents they can use to file their annual federal and state returns. Either option is a crook's dream. The checks can be cashed. The tax statements' info can... Read more →


Elmer Irey headed the Internal Revenue Bureau's Intelligence Unit in the 1930s. It was under Irey's direction that evidence was gathered leading to the conviction of Al Capone for failure to pay his income tax. Read more about Irey and Capone at The Mob Museum. I'm a big sports fan. But sometimes I need a break. So in my channel flipping today to find something other than the Olympics, soccer/futbol, NHL hockey and part 1 of NASCAR's 83-step Daytona 500 qualifying process, I ran across one of my favorite movies, "The Untouchables." I'm talking the 2007 version, with Kevin Costner... Read more →


While most investors have been closely following the recent gyrations of the stock market, fans of cryptocurrency also have been on their own frenzied financial journey. One bitcoin, as of this morning, was worth almost $8,433. I'd be happy with that value, but that's less than half what the cryptocurrency was worth in mid-December. On Dec. 16, 2017, the digital currency topped out at more $19,000. The cryptocurrency can be spent like real money — don't email me bitcoin et al fans; it will always be just one step above Monopoly money to me — but many tax collectors worldwide... Read more →


With the official start of the 2018 tax filing season just more than a week away, folks have been collecting important tax statements they'll need to file their returns. Identity thieves, unfortunately, are among those looking for those documents, particularly W-2 forms that most filers use to report their wage income. That's why the Internal Revenue Service is urging everyone to be on guard against the return of the Form W-2 phishing scam that last year made victims of hundreds of organizations and thousands of employees. Costly employment-related tax scam: The W-2 scam has emerged as one of the most... Read more →


Nothing says Merry Christmas like the disembodied Santa head lights (click for a closer, clearer view) that brighten our fireplace hearth each holiday season. (Please ignore my reflected selfie!) And yes, this and other Christmas decorations are already, before Thanksgiving, up at our house! Ho, Ho, Ho! I know we've yet to celebrate Thanksgiving, but I can tell that Christmas is near, too. How? Well, in addition to having already decorated our house (interior only so far for us, but ho-ho-holiday lights are already on some of our neighbors' houses) for Santa's annual arrival, I'm getting the usual year-end flood... Read more →


Tax identity thieves apparently are paying close attention to official security moves that the Internal Revenue Service is making and using that information to create new schemes. The latest effort by crooks to steal taxpayer personal data comes in the form of a new phishing scam designed to steal tax professionals' passwords and data. e-Services is hook for latest ID theft effort: In an email alert sent this (Oct. 11) afternoon to tax pros, the IRS warned that this latest scheme tries to trick them into signing a new e-Services user agreement. The phishing email claims to be from "e-Services... Read more →


Former Equifax CEO Richard Smith is grilled Oct. 3 about the credit company's security breach by members of the House Energy and Commerce Committee. (Click image to watch full hearing on YouTube) Human error, specifically one human's error, is why 145 million of us are worrying about what crooks will do with the data that was stolen earlier this year in a data breach of Equifax. Richard Smith, the credit reporting bureau's former CEO, in testimony before House Energy and Commerce Committee today blamed the initial failure to patch a known security risk on a specific individual. He did not... Read more →


Look out tax criminals, there’s a new sheriff in town. OK, technically Don Fort is not a sheriff. But as the new Chief of Criminal Investigation (CI) for the Internal Revenue Service, he is the tax agency’s top law enforcement officer. Last week, he announced some of CI’s goals, which include going after bad tax guys nationwide and internationally. Fort discussed three areas in which CI will be more involved and touched on how the tax agency’s stretched resources can be supplemented by a data driven investigative strategy. Traditional tax cases remain job one: Some things, however, won’t change. “First... Read more →


Every computer user is familiar with the constant updates to software. So are identity thieves. And now these crooks are targeting tax professionals in a new phishing scam designed to steal usernames and passwords. The Internal Revenue Service and its state and tax industry Security Summit partners say that this latest impersonation scheme variant is a sophisticated scam designed to get information that can be used to file false tax returns and collect fraudulent tax refunds. It's the latest in a series of scams this summer that have targeted professional tax preparers. Software upgrade hook: This is the time of... Read more →


Alfred Hitchcock nailed it in his 1955 cat burglar-turned-romance starring Grace Kelly and Gary Grant. The pair teamed up, with Grant's character using his expertise as a former jewel thief, to catch a new criminal in the wealthy playground of Monte Carlo, Monaco. (Click film screenshot to watch the movie trailer on YouTube.) The Internal Revenue Service apparently is taking a hint from a Hollywood classic. It's thinking like identity thieves to catch identity thieves. That was among the messages from IRS Commissioner John Koskinen in July 25 media teleconference. Cybercriminals are showing increasing savvy and tax expertise, particularly in... Read more →


UPDATE, Sept. 18: The House of Representatives continues to make progress in efforts to end civil asset forfeitures. On Sept. 12, the chamber passed via voice vote an amendment to an appropriations bill that would bar bonuses for a section of Department of Justice (DOJ) employees until they rule on 255 civil cases referred to them by the Internal Revenue Service. This follows the Sept. 5 House passage, also by voice vote, of H.R. 1843, the Restraining Excessive Seizure of Property through the Exploitation of Civil Asset Forfeiture Tools, or RESPECT, Act. The legislation, discussed below, would impose new restrictions... Read more →


Feeling left out because tax scammers have been focusing lately on tax preparers? Don't. Crooks likely will be calling or sending you an email soon enough. The Internal Revenue Service says that everyone, individual taxpayers and tax pros alike, are potential victims of identity theft schemes as we head into what used to be a slower time for taxes. "We continue to urge people to watch out for new and evolving schemes this summer," IRS Commissioner John Koskinen said in an alert issued today, June 26. "Many of these are variations of a theme, involving fictitious tax bills and demands... Read more →


Based on the fast and furious pace of tax scams this month, you'd think it was high tax season instead of summer. For the second time in just more than a week, the Internal Revenue Service has issued a new tax scam alert. (In case you missed it, the pervasive tax telephone scam was recently tweaked.) This latest scam warning is for tax professionals, who are receiving phishing emails purportedly from a tax software education provider. The fake communication asks for the tax preparers' help in repairing a failure in the message sender's sham database. To that fake end, the... Read more →


Memorial Day in the United States is the biggest day in motorsports worldwide. The starting lights in Monte Carlo signal the beginning of the glamorous F1 race in Monaco. Next, the green flag drops at Indianapolis Motor Speedway to get the cars rolling in the Indy 500. The day wraps up with the checkered flag in Charlotte, North Carolina, marking the end of NASCAR's longest race of its season. While race fans across the globe will watch at least some of the races, law enforcement officials in Thailand and the United Kingdom are focusing on other vehicles. Pol Lt-Colonel Korrawat... Read more →


A Pennsylvania man said he didn't file 10 years' worth of federal tax returns because the forms required use of a Social Security number, which he considered analogous to the Biblical "mark of the beast." James Kerr Schlosser's 666 tax protest, however, didn't convince the Internal Revenue Service or the legal system. The 59-year-old Bird-in-Hand, Pennsylvania, resident was convicted on March 7 of failing to report $2.3 million he earned as a medical equipment salesman. Foreign accounts, coins used in scheme: To evade the tax due on the millions, federal court papers show that Schlosser used foreign business trusts and... Read more →