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According to a post about Stolen Identity Refund Fraud on the Department of Justice website, the Internal Revenue Service (IRS) reported that more than 5 million tax returns were filed using stolen identities during the 2013 tax filing season alone. (This resulted in more than $30 billion in illegally-obtained refunds. Fortunately, the IRS was able stop or recover more than $24 billion of the stolen funds.) One of the Tax Division’s highest priorities is to catch and prosecute criminals who use stolen personal identification information to file false tax returns and claim refunds which they do not deserve. A Department of Justice press release details the successful prosecution of an Alabama woman who participated in a multimillion-dollar stolen identity tax refund fraud (SIRF) scheme.
The release explains that the woman and her two co-conspirators prepared and filed more than 3,000 fake electronic tax returns and quickly received more than $7.5 million in federal income tax refunds in the form of treasury checks or prepaid debit cards. One co-conspirator supplied the woman with electronic filing identification numbers under bogus tax business names plus stolen identities used to file the tax returns. (Another co-conspirator provided stolen identities from two different state agencies she was employed at for over eight years.)
According to a prior press release about the case, the woman is facing a maximum of five years in prison for conspiracy and a minimum sentence of two years in prison for aggravated identity theft. She will also likely be responsible for monetary penalties including fines, forfeiture and restitution. (She is definitely responsible for a bunch of very unhappy victims.)
The accomplice who stole identities from two state agencies, pleaded guilty to her part in the scheme. She was sentenced to 87 months in prison. Further research shows that the other co-conspirator was also one of 10 suspects indicted for her alleged part in another $20 million SIRF scheme impacting approximately 7,000 victims. (She stole some of the identities from a State Department of Corrections along with active-duty military personnel.)
Unfortunately, everyone that possesses a Social Security Number (SSN) is vulnerable to SIRF fraud. (Due to the digital age, SIRF crimes can occur across state and even national borders.) The Tax Division has made great strides in implementing procedures that make it extremely difficult for SIRF schemes to be successful. In addition, SIRF prosecutions have been successful in generating long prison sentences that deter others from taking advantage of honest, tax-paying citizens. For more information on how to better protect your identity, visit this IRS web page.
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