Tax crimes Feed

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 →


The Internal Revenue Service's Criminal Investigation (CI) division is charged with putting tax and other financial crooks behind bars. That job has gotten tougher, according the man who heads the CI, primarily because of the loss of experienced agents. "We're at the same staffing level as 1956, which is just unbelievable when you think about it," CI Chief Richard Weber said during a press this week in conjunction with the release of the division's 2016 annual report. "There's still no realistic expectation of increasing that number anytime soon. It's very difficult to be able to do everything we are mandated... Read more →


Tax season is here. You know what that means. Tax scams are here in full force. Even before the official 2017 filing season started, the Internal Revenue Service warned tax professionals to be on the lookout (sorry, I know that the BOLO phrase is a touchy one when it comes to the IRS) for yet another tax scam. This one, according to the IRS and its Security Summit partners, is a new e-mail phishing scheme aimed at tax pros that has the subject line "Mails on Hold!" It comes just two months after the crooks tried to get tax preparer... Read more →


Taxpayers will be "trusted customers" when they file their tax returns next year. That's how the Internal Revenue Service and its state tax and private sector Security Summit partners are approaching the 2017 filing season. The group, which discussed upcoming security measures at a press conference Nov. 3, says the filing process next year will focus on and expanded features that will help ensure the authenticity of the taxpayer and the tax return. Paris officials last summer removed the love locks from Pont des Arts for safety reasons, but the IRS and its Security Summit partners are adding heavy duty... Read more →


Eighty-five years ago today -- Oct. 17, 1931 -- a federal jury in Chicago convicted gangster Al "Scarface" Capone of tax evasion. He was sentenced to 11 years in prison, ultimately ending up in fabled Alcatraz. Al Capone's U.S. Department of Justice mug shot, taken four months before his tax eviction conviction on Oct. 17, 1931. Keep that in mind if you're thinking of blowing off today's extended filing deadline for getting your 2015 tax return to the Internal Revenue Service. All these years later, the IRS and Treasury still proudly point to Capone's conviction. It was T-men who put... Read more →


Have global law enforcement officers cracked the biggest U.S. tax scam ever? Probably not, but it appears they have at least slowed one major criminal operation. Indian officials raided several call centers outside of Mumbai and arrested 70 people in connection with the extensive IRS impersonator tax scam. Indian investigators this week arrested around 70 people in the Mumbai suburb of Thane on charges of allegedly calling Americans and pretending to be Internal Revenue Service representatives in order to obtain payments for fake tax bills. The arrests, according to reports in the Wall Street Journal and Guardian newspapers, came the... Read more →


A married couple who helped the federal government collect more than $74 million from a tax criminal finally got their financial reward last week. U.S. Tax Court building in downtown Washington, D.C. On Aug. 3, after fighting for the whistleblowing payment for four years, the anonymous tax tattletales, referred to as Petitioner 21276-13W and Petitioner 21277-13W in court documents, were awarded $17,791,607. The U.S. Tax Court ruled the husband and wife deserved the nearly $17.8 million whistleblower award, which is this week's By the Numbers figure, despite the federal government's argument that the claim was outside the scope of the... Read more →


Victims of tax identity theft must use a special tax number when they file since their Social Security number has been appropriated by crooks. This new six-digit tax ID is known as the Identity Protection Personal Identification Number, or IP PIN. Others who aren't ID theft victims, but who want to use that number instead of their nine-digit Social Security ID for added security when they file, also can opt in to the program. But that option has been on hold for months because, you got it, concerns about tax identity thieves hacking into Internal Revenue Service systems. Now the... Read more →


Sports fans tend to be, well, fanatic. To many, it's what a player does during the game, not his or her off-field antics that matter. Moment of the Champions League final with FC Barcelona's Leo Messi, left, going against Patrice Evra of Juventus at Olympiastadion in Berlin on June 6, 2015. (Photo by Biser Todorov via Wikimedia Commons) That kind of no-questions-asked support was what the Barcelona football -- or soccer, as most Americans call the sport -- team was counting on in the wake of its star player's tax evasion conviction. Public outreach, tax backlash: Last week after Lionel... Read more →


Taxpayer security, despite some recent issues, actually is improving. That's the word from the Internal Revenue Service and its private sector Security Summit partners Tax crooks tried to claim $1.1 billion in fraudulent refunds on 171,000 returns this latest main tax-filing season, the IRS announced at a press conference this morning. But the agency caught those fake returns filed from January through April before any money was sent to the identity thieves. That's an improvement over the prevention rate the year before, when the IRS stopped $754 million in fraudulent refunds claimed on 141,000 fake returns. The improved identification of... Read more →


Hackers continue to assault the Internal Revenue Service's online options, forcing the agency to shut down yet another website tool. Another automated bot hacking attempt by identity thieves has forced the IRS to stop issuing e-file PINs. On Thursday, June 23, the IRS announced that taxpayers can no longer obtain an electronic filing personal identification number, or e-file PIN, at either IRS.gov or even via phone. And due to growing identity theft and tax refund fraud threats, the shutdown of the e-file ID option might be permanent. Who needs an e-file PIN? Some taxpayers use an e-file PIN to verify... Read more →


As the U.S. Senate was preparing to debate tougher gun control proposals (they all failed, by the way, in votes held Monday, June 20), a government transparency group was issuing a report on the amount of armaments held by non-military U.S. agencies. In its publication "The Militarization of America," Open the Books also blasts the Internal Revenue Service for its inadequate inventory control in tracking weapons in its Criminal Investigation Unit. Open the Books, which is a project of the nonprofit organization American Transparency, says in its report that: Sixty-seven non-military federal agencies spent $1.48 billion on guns, ammunition, and... Read more →


Go big or go home. That's a common mantra down here in Texas. A variation applied this week in a federal bankruptcy courtroom in Big D. The judge there ruled that a former Lone Star billionaire's big attempt to shelter money offshore means he owes the Internal Revenue Service a big bill. Sam Wyly, a once legendary Dallas businessman, philanthropist and one of the wealthiest men in the country (shown at right on the October 2015 cover of D CEO magazine), was found on May 10 to have defrauded the IRS by shuffling assets among a network of offshore trusts... Read more →


The 2016 presidential campaign has been an unusual one in many ways. The so-called political establishment has been under fire on both the Democratic and Republican sides. Usually reliable pollsters and pundits have seen their projections upended by a new type of electorate. And social media has become a major player in the race for the White House. But one thing hasn't changed. The presumptive GOP nominee is as reluctant in 2016 to release his federal tax returns as was the 2012 candidate. This year, it's Donald J. Trump who says he won't release his tax returns until the Internal... Read more →


Brothels are legal in New South Wales, Australia, so officials there had no problem when Jamelie Lahood ran the Stiletto brothel for more than a decade until 2014. A room at Stiletto, a high-end brothel in Sydney, Australia. Photo from the bordello's Instagram account. However, Australian tax officials do take issue with the nearly $2 million ($1.5 million in U.S. currency) they say Lahood owes from her earnings as boss of the self-described "world's finest short stay boutique hotel and Sydney brothel." The money Lahood made operating Stiletto between 2008 and 2014 placed her among the top 0.1 percent of... Read more →


Millions of folks are working diligently these last few days before the April 18 (19th in Maine and Massachusetts) tax filing deadline. Unfortunately, that tax-focused group includes criminals. This afternoon the Internal Revenue Service issued a warning to tax professionals of a new scam that's just started showing up in some tax prep offices. In this latest iteration of tax identity theft, cyber-criminals obtain remote control of preparers' computer systems, complete and file client tax returns and redirect refunds to the thieves' accounts. The IRS says that although it knows of only a handful of cases to date, it wanted... Read more →


A group of South Florida rappers allegedly created a music label as a front for a massive tax refund fraud ring. Click image to watch the MoneyKing_GroundUP111 video on YouTube. Maybe the erstwhile rappers should change their musical moniker to Doin' Time since six of them were sentenced to jail last week in connection with the tax fraud scheme. Harlan Decoste of Miramar, Florida, who went by the alias Money King, created the label, according to the federal charges filed against him and his confederates back in August 2015 in the Southern District of Florida. Decoste received the longest prison... Read more →


Tax con artists apparently like playing in the Internal Revenue Service's backyard. The 2016 tax-filing deadline is just days away and new phishing scams are popping up. Just last month they did so symbolically, pretending to be members of the Taxpayer Advocacy Panel, a group dedicated to helping taxpayers get better service from the tax agency. They used TAP's good reputation in phishing emails to try to convince unsuspecting recipients to reveal personal tax information. Now tax identity thieves literally are targeting folks living in the national capital area. The IRS' headquarters is in Washington, D.C., and many of its... Read more →


Diane L. Kroupa was appointed as judge to the U.S. Tax Court in June 2013. Her term was supposed to have run for 15 years, but in June 2014 she retired early. This week Kroupa, 60, was indicted on two counts each of tax evasion, filing false returns and obstruction of an IRS audit. Her husband, Robert E. Fackler, 62, also was indicted on the same six tax-related charges. The couple is accused of understating their income by approximately $1 million on tax filings for the 2004 through 2010 tax years. Much of that too-low amount was arrived at by... Read more →


When the hubby and I head to a sporting event where only young fans are given freebies, say a team-logo cup or a bobble-head doll, we joke that we should be able to rent a kid or two so we could get the goodies. Yes, we would take sports-related candy etc. from children! This baby didn't hamper dad's ability to snag a foul ball. Plus, he provides his parents with several potential tax saving options. Click image to see MLB video of the catch and story about the ensuing controversy. Well, one Missouri man allegedly took our jesting approach to... Read more →