April 15 is the deadline of the filing for 2012 federal income tax returns and it is not just taxpayers and preparers who are trying to beat it. Also working hard are the identity thieves who file fake returns using their victims’ names and Social Security numbers as they try to get refunds.
The number of tax investigations on identity theft tripled in 2012 fiscal year compared to the past year. This was according to an IRS document that showed cases increased to 898 from 276 cases. Prosecution recommendations and indictments also went up. Through January, 542 investigations were launched in the current fiscal year. It looks like the numbers for this year will surpass that of 2012.
Luis Garcia, Internal Revenue Service’s spokesman for Michigan, said that investigation stopped improper tax refunds of up to $20 billion last year. In Plymouth Township, Detective Sgt. David Hayes said that the police department has seen reports of tax related identity theft before tax season. Victims are asked to file reports with the local law enforcement agency but it is the job of the IRS to investigate the crimes.
Identity thieves file returns to get big refunds, which they will try to have electronically deposited to their accounts. They file all types of deductions, expenses and credits that are false. Garcia said that the IRS probes of identity fraud are complex and time consuming. Agents have to be thorough with their investigations.
US Attorney Barbara McQuade, the IRS, Postal Inspection Service, and the Secret Service announced criminal charges in cases of identity theft in Detroit. Garcia said that the victims are asked to fill up an affidavit of identity theft and they will be issued a special code that will let them transact with the IRS without meddling with the fake returns that are currently under investigation.
