Will Tax-Refund Fraud Hit $21 Billion This Tax Season?
With a total estimating to approximately $21 billion, the IRS believes this is the monetary damage they may suffer for from those committing fraud when filing their tax refund this year. CNBC reported back in February, 2015 the concern the IRS was facing for those completing a 2015 tax return with the reported loss of $6.5 billion two years prior. They believe 2016 will only bring more of a loss from criminals committing tax fraud this year.
With tax lawyers in Wyoming more than ready to handle any new cases thrown their way this year, with the possible new implementation of stronger software, they may be surprised with the reported number of tax fraud cases they receive.
The issue last year was pinpointed to tax preparers software and the “outdated fraud-detection system.” The ability to detect fraud as it is occurring was the issue seeing that the system was easily tricked. And with all those out there who study these structures and learn of the loopholes in the programs, they are able to break through and steal money that is not rightfully theirs to take.
In the article, Akli Adjaoute, “who is the founder and CEO of artificial intelligence firm Brighterion” stated that the system lags behind and is a mere “disaster.” The tax filing systems out there require minimal information and make is easier for criminals to get their hands on this money. And as the IRS has its tactics in place to flag those completing a wrongful return, it is to be determined whether or not the estimated total for tax-return fraud will be reached for those filing their 2015 tax returns in 2016.
Tax legal representatives in Wyoming point out one of the main causes of tax fraud being overlooked, and although it may go unnoticed for a while, it eventually is brought to light. One of the flaws mentioned is that in order for a person to file a tax return, they need a name, date of birth, and social security number.
While the IRS allows returns to be filed as early as January 1st, those employers are given until March to file adequate information regarding their employees’ current earnings. With that gap, it becomes more of a challenge to identify when someone is improperly filing a return and possibly adding numbers that are inaccurate.
With tax season just underway, it is unknown what the total will amount to for tax-return fraud for the 2015 year. And while many get themselves mixed up into legal issues involving their taxes, there are instances where being wrongfully accused of tax fraud presents itself. If you have suffered from harassment from the IRS and are being accused of improperly filing your taxes, be sure to contact a Wyoming tax fraud attorney at your earliest convenience to help get your situation under control before it is to late.