CPA Confirms IRS Pays Folks $6,600 for Doing Absolutely Nothing!
Posted by Randall C. Sorensen on September 21, 2013 at 9:15am
Did you know that by writing 5 numbers on a tax return the Internal Revenue Service will pay you $6,600 for doing nothing? According to the Treasury Inspector General’s Office the IRS is defrauded between $14 and $16 billion each tax season. Nearly 30 million tax filers (not taxpayers) share in a $60 billion dollar pie called Earned Income Credit. Basically, if you earn between $3,000 and $45,000 and have a dependent child, you qualify for a tax credit between $300 and $7,500.
Here is How the IRS is Defrauded $6,600!
Jane Doe writes on her 1040 Schedule C that she earned $13,720 income from an imaginary cleaning business. Since Jane doesn’t have a business, she doesn’t need to purchase any brooms, dust pans, cleaning supplies or mops. For Jane’s efforts, she will qualify for federal tax credits of $6,600. Before the US Treasury deposits a tax refund of $4,900 into her bank account, they make a deposit into Jane Doe’s social security retirement account for $1,700. From start to finish, Jane can complete her phantom tax return using phantom income in 15 minutes!
I contacted the FBI and informed them that tax preparation companies would defraud the US Treasury of $3.7 billion during the 2013 tax season. Unscrupulous tax preparers don’t hesitate to file bogus EIC tax returns defrauding the IRS of $6,600 because they slice a $200 prep fee before the money ever reaches the hands of the tax fraud.
I issued a press release entitled “Tax Technology Would Save IRS $3.7 Billion in Next 60 Days”. The article had 881 readers. This included nearly 75 from the counties of France and Germany. Why would those countries be so interested in learning about tax fraud technology in the United States?
$5,000 Cash Refund or 10 IED’s
The IRS should consider offering EIC tax frauds the choice of receiving $5,000 cash or 10 IED’s. Terrorists shouldn’t have to be burdened with going to the bank and then having to negotiate the purchase of improvised explosive devices.
I estimate terrorists obtained 40,000 fraudulent 2012 EIC tax refunds that paid them $200 million this past March. According to Wikipedia the avg. cost of an IED is $500. As a result of the IRS ineptness at preventing tax fraud, the US Treasury may have just funded 400,000 IED’s. Why should American troops potentially suffer?
Last fall Randall Sorensen CPA provided the IRS a solution to prevent massive tax fraud. The IRS kicked the tires for a month only to come back and say: 1) they didn’t have any money and 2) the idea of testing tax returns in real-time lacked innovation. Really….. I guess Pony Express trumps Federal Express in the eyes of the IRS. In contrast, the cash strapped IRS managed to pay $500 million to software developer Strong Castle. The company was “friends” with an influential IRS employee. That is pure fraud.
The IRS doesn’t want American taxpayers to know what a complete sieve they are at preventing tax fraud. Over the course of 20 years, one unscrupulous taxpayer can defraud the US Treasury as much as $300,000 and never have to pay a dime or work a day in their life. One final rub, the tax fraud qualifies for a retirement because the IRS withheld Social Security taxes from their phantom job. Speaking of retirement, I believe it’s time to permanently retire the IRS unless they can demonstrate the ability to prevent massive tax fraud that jeopardizes the safety of our troops.