Recent Blog Posts

bpl postcard
The Value of Open Public Records
Records and Repositories
Rate this blog entry:
0
10849762 815727755140585 6825543623968073505 n
MGC's NERGC Panel on Open Records: Citizens Can Make a Difference
General Legislation
Rate this blog entry:
0
b2ap3_thumbnail_3560856061_20a83080d0_z.jpg
How many deaths before the SSDI gets updated again?
Legislation Federal
Rate this blog entry:

MGC Blog Tag Cloud

Vendors State archives Lou Szucs RPAC HR6205 Kenneth Ryesky Randy Seaver diagnosis FGS SSDI family medical history online registration archives Jacobson v Massachusetts Teresa Scott Judy Russell Thomas MacEntee Barbara Mathews Vital Records IRS S1534 volunteers NFOIC threats to access Alvie Davidson FGS Conference DMF NGS Linda McCleary Massachusetts Records Access legislators HR3475 Elections Rep. Michael Capuano (MA) blog Registration HR 295 Virginia NERGC inheritable disease Health pedigree Records Access Congress communication NEHGS Melinde Byrne 2012 Seminar sysoon Presidential Citation Fred Moss pensions Kate Auspitz Virginia Alfred DeMaria Richard Nugent Social Security Administration Federal threats to access open access Mary Ellen Grogran State legislation Annual Meeting and Seminar Massachusetts legislation Pennsylvania IAJGS Congress public access Jan Meisels Allen Presenters IAJGS 2012 Advocacy Georgia Instruction records access Jan Alpert medical pedigree mail forwarding Genealogy Stan Nyberg Oklahoma identity fraud Senate Sponsors family traits New Jersey Public Records award Rep. Sam Johnson (TX) SSDI APG ISJGS Society Showcase HR3475 records access budget cuts volunteerism budget DMF; SSDI; Tax Fraud; legislation IGS Programs Annual Seminar Helen Shaw Sharon Sergeant Open Access 2014 Seminar Ancestry Transparency War of 1812 Death Master File introduction land records medical profile Public Records MGC SSA APG Roundtable Georgia Archives Billie Fogarty FamilySearch fraud Harold Henderson legislation Rhode Island RPAC access Newsletter Arkansas Lame Duck Georgia Education TIGTA audit FGS New Hampshire Annual Meeting legislation Bruce Cohen NAPHSIS Annual Seminar State Library Free DPH HR295 S-1534 S3432 Civil Records New Hampshire records access civil records Arkansas Tennessee Richard McCoy Rep. Richard Nugent (FL) Ethnicity DMF closures outreach Michael J. Astrue Advocacy FOIA seminar Access Identity Theft Legislative humane Donna Holt Siemiatoski Tax Fraud SSA David Rencher State House Legal Genealogist Jan Meisels Allen Speakers Tennessee smallpox Delaware Henning Jacobson funding health history

SUPPORT MGC Today!

(Online donations available
after website update in 2016.)
 
MGC has been recognized as tax-exempt under Internal Revenue Code 501(c)(3). Gifts of support are fully tax-deductible and donors will receive a written acknowledgement for tax purposes.

MGC Sentinel logo MGC Sentinel Logo

MGC Sentinel

Keeping Watch Over Massachusetts Public Records

  • Home
    Home This is where you can find all the blog posts throughout the site.
  • Categories
    Categories Displays a list of categories from this blog.
  • Tags
    Tags Displays a list of tags that have been used in the blog.
  • Bloggers
    Bloggers Search for your favorite blogger from this site.
  • Team Blogs
    Team Blogs Find your favorite team blogs here.
  • Login
    Login Login form

The Bottom Line on Tax Fraud? $5 Billion per Year

Posted by on in Legislation Federal
  • Font size: Larger Smaller
  • Hits: 67264
  • 1 Comment
  • Subscribe to this entry
  • Print

The United States Treasury Department's Acting Deputy Inspector General for Audit just released a lengthy report about the extent of income tax fraud in the U.S. The audit was conducted as a direct result of the Senate and House hearings we have been watching over this past year. Their findings are stunning. You can read the report here. Surely the subcommittee chairs will move their legislation (H.R. 6205 and S. 3432) out of committee with a favorable report with the support of the audit results.

Between 2010 and 2012, the fraud more than doubled from 440,581 instances to 1,125,634 instances "meeting the characteristics of confirmed identity theft cases." In 2011, these returns amount to $5,221,018,184 in potentially fraudulant payments.

Much of this fraud is apparently generated by criminal groups. It is significantly limited geographically. The report provides the following table. The addresses in the table are unique residential addresses. Five homes in the U.S. received almost five thousand returns for more than eight million dollars.

Figure 3:  Top Five Addresses Used to File
Potentially Fraudulent Tax Returns

Address

Number of Tax Returns

Refunds Issued

Address 1 in Lansing, Michigan

2,137

$3,316,051

Address 2 in Chicago, Illinois

765

$903,084

Address 3 in Belle Glade, Florida

741

$1,004,897

Address 4 in Orlando, Florida

703

$1,088,691

Address 5 in Tampa, Florida

518

$1,791,770

Total

4,864

$8,104,493

Source:  TIGTA analysis of TY 2010 tax returns.

Because this fraud is used as the reason to close access to the Social Security Death Index, it is important for genealogists to understand the extent of the fraud. The report details conditions in the handling of information at the Interal Revenue Service itself that contribute to the many fraudulant payments. As the following table shows, stealing the social security numbers of deceased individuals is only the tip of the iceberg.

Figure 5:  Analysis of Potentially Fraudulent Tax Refunds for TY 2010

Type of Individual

Number of Tax Returns

Refunds Issued

Deceased 

104,950

$415,047,568

Elderly

76,338

$374,419,730

Citizens of U.S. Possessions

67,789

$387,183,428

Students (ages 16 to 22)

288,252

$695,343,022

Children (under age 14)

2,274

$3,960,327

Income Level Does Not Require Tax Return Filing

952,612

$3,345,064,109

Total

1,492,215

$5,221,018,184

Source:  TIGTA analysis of TY 2010 tax returns.

Those genealogists whose livelihoods or volunteer work depend on access to the SSDI should consider communicating with their own Congressmen and Senators. Work of this type includes those who work to return the remains of Missing or Killed in Action servicemen, those who seek the next-of-kin for Unclaimed Persons, and others in similar compassionate roles.

Explain why access to the Death Master File is critical to your work and ask your legislator to contact the House and Senate subcommittee chairs with the message to add investigative genealogists to the list of credentialed people. The current bills open the records only to those stopping fraud. Our compassionate work needs to be recognized. We were denied the opportunity to testify at any of the subcommittee hearings. Our own legislators are now our only path to having our voices heard.

I suggest you, as taxpayers and genealogists, read the report. The full URL for the report is:
http://www.treasury.gov/tigta/auditreports/2012reports/201242080fr.html

Last modified on
Rate this blog entry:
0
Barbara serves as the Federal Records Director. She is a Board-certified genealogist who works for the Massachusetts Society of the Colonial Dames of America as a Verifying Genealogist and for the Welles Family Association as a Genealogist. Her volunteer service includes a stint as President of MGC. She holds a master’s degree in the management of non-profits from the Florence Heller School at Brandeis University. You can read her own blog, The Demanding Genealogist, at blog.demandinggenealogist.com.

Comments

  • Guest
    Polly Kimmitt Tuesday, 07 August 2012

    That's incredible, Barbara! Thank you so much for posting this!

Leave your comment

Guest
Guest Thursday, 17 August 2017