Be Cautious About Tax Frauds

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Now and again, we hear stories about tax frauds. Many people who have spent a lifetime in building their repute among their family, friends and neighborhood, lose their hard-earned repute in a matter of days because of tax frauds.

It is not necessary that someone evaded taxes in order to become a laughing stock. The other end of the spectrum can also be true that someone has been honestly paying taxes while the taxes were not reaching the government and instead were filling up someone else’s pockets.

It is important to keep an eye on tax fraud instances and be aware of any loophole in the system to make sure that you do not become a victim of tax fraud.

AIMEE PICCHI at CBS News is talking about the rising tide of tax filing fraud in this post:

The rising tide of tax filing fraud

By AIMEE PICCHI MONEYWATCH February 9, 2015, 2:59 PM

It’s a crime that’s become so pervasive that people ranging from U.S. Attorney General Eric Holder to prison inmates have fallen victim: Fraudulent tax filing.

The issue hit home for many workers last week, when TurboTax temporarily halted filing state returns amid an uptick in fraudulent filings. While TurboTax, which is owned by Intuit (INTU), resumed filing on Friday night, the problem is on the rise, according to several states that have issued warnings about the crime.

Biggest IRS scam around: Identity tax refund fraud
In fraudulent tax filings, criminals submit tax returns for other people, using stolen information such as Social Security numbers and employer information. They then direct the IRS or state treasury departments to pay the refunds into their own accounts, collecting as much as $5.2 billion in fraudulent payments. The IRS said it investigated almost 1,500 cases in 2013, a surge of 66 percent from the previous year.

Read the full story here..

The government is also trying its best to control all the loopholes in the system and make sure that people with fraudulent intentions do not find any way of cracking the tax system.

LAURA SAUNDERS, LIZ MOYER and DEVLIN BARRETT from Wall Street Journal are talking about FBI’s efforts in this post:

FBI to Probe Fraudulent Tax Filings

As States Move to Contain Bogus Returns Through TurboTax, Signs Emerge That Fraud May Involve Federal Filings
By LAURA SAUNDERS and LIZ MOYER in New York and DEVLIN BARRETT in Washington, D.C.
Updated Feb. 11, 2015 1:38 p.m. ET
The Federal Bureau of Investigation has opened a probe to determine whether a computer data breach led to the filing of false tax returns through TurboTax software, according to a person familiar with the case.

The move comes as states try to contain a wave of bogus state tax filings through TurboTax amid signs that the fraud may also involve federal returns, according to some security specialists and taxpayers.

The full story can be found here..

CNN has posted this video about Tax Refund Frauds:

So, make use of authentic and reliable Sound Tax Service for all your tax needs.