Tax Fraud Season

Yes, it's the season for tax fraud yet again.

 The Detroit Free Press: Scammers go after lucrative tax credits, use new tricks to file fake tax returns

As noted in the article, the IRS has unfortunately made it even easier for fraudsters this year.

They did so by removing one safeguard:  if you're one of those whose 2020 return is still not processed by the IRS you can place a  0 on your return for the prior year to prov e you identity.  Unfortunately,  anyone else can do that just as easily rather than a fraudster actually having to know your last year's income to use your ID to steal a tax refund under your name.  Nice way to open the door wide open there.

Add lots of refundable credits including for people who don't need to show any income at all, and you get some of the scams in the article, such as someone stealing an identity and then claiming to have 13 kids to get thousands of dollars in unearned tax credits sent right to them.

Of course, the IRS keeps it easy by allowing fraudsters to get money in an easy and untraceable way:

Many times, the refund cash is to be deposited onto a prepaid debit card so that crooks have easy access to the money. 

Allowing refunds on anonymous debit cards rather than to only the actual bank accounts or a check made out in the name of the filer is ridiculous.   I'm almost surprised the IRS doesn't allow a refund to go to an anonymous digital coin account.

I guess the IRS has gotta allow the "unbanked" and illegals and of course the legion of fraudsters to get their (and other's) refunds without any need to prove their identity, right? Of course, this is at the expense of much easier fraud against the rest of us and the Treasury itself.

Maybe the IRS should take a real step to cut down on fraud and stop issue tax refunds on debit cards, and require it to go to bank accounts where the name on the account at least matches the filer's name.