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During the next three months the Treasury Inspector General for Tax Administration, estimates that the US Treasury will be defrauded $14 to $16 billion by tax frauds.  Each tax season 30 million tax filers (not taxpayers) share in a $60 billion dollar money pie called Earned Income Tax Credit.  What started out in 1975 as an admirable idea and expanded by Ronald Reagan to assist low-income parents has morphed into a gigantic fraud that threatens the safety of ALL Americans courtesy of the incompetency within the walls of the Internal Revenue Service.

Sincere Apology to Military Families

Before beginning my discussion I want to apologize to military families, relatives and friends that have suffered losses in the Iraq/Afghanistan Wars.  My purpose isn’t to bring pain to those who have lost loved ones but rather to: Stop the Madness called the Internal Revenue Service.

How The IRS Is Defrauded

Jane Doe (mother of two) claims $14,420 income from an imaginary cleaning business on her tax return.  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 qualifies for federal tax credits of $6,900. 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 $2,000.  From start to finish, Jane can complete her phantom tax return using phantom income in 15 minutes! 

IRS Sent $46 Million in Tax Refunds to a Single Atlanta Address

Forrest Gump memorialized the line “I’m Not a Smart Man”.  I think it’s safe to say that even Forrest Gump would agree that issuing 23,994 tax refunds totaling $46 million to unauthorized alien workers  isn’t very smart.  Forrest wasn’t aware how accurate the phrase “Mama always said stupid is as stupid does” would apply when describing the IRS. http://cnsnews.com/news/article/irs-sent-46378040-refunds-23994-unauthorized-aliens-1-atlanta-address

$5,000 Cash Refund or 10 IED’s

The IRS should consider offering EITC tax frauds the choice of receiving $5,000 cash or 10 IED's (improvised explosive devices).  Terrorists shouldn't have to be burdened (tongue-in-cheek) with going to the bank and having to negotiate the purchase of IED’s.  If terrorists are responsible for only ½ of 1% of the estimated 8 million fraudulent EITC tax returns, it represents tax fraud of $200 million.  The internet shows the average cost of an IED is $500.  Stated another way, the US Treasury may be responsible for annually funding 400,000 IED’s! 

Potential Terrorist Tax Refund Fraud

60% of Iraq War Casualties Caused by IED’s

The Washington Post reported that 60% of US combat casualties in Iraq and Afghanistan were the result of improvised explosive devices.  That means that approximately 2,000 troops have been killed and another 20,000 wounded by IED’s. http://www.washingtonpost.com/opinions/improvised-explosive-devices-are-here-to-stay/2013/05/17/8d9c9d7c-be64-11e2-9b09-1638acc3942e_story.html

US Citizens Indicted for Selling Approx. 20,000 Computers to Iran

The Department of Justice indicted two Dallas businessmen for selling $12 million in computers to Iran. (http://www.fbi.gov/dallas/press-releases/2013/dallas-area-businessmen-charged-in-plot-involving-illegal-export-of-approximately-12-million-worth-of-computers-to-iran).  In addition the DOJ charged a pair of California individuals for selling $5 million in computer equipment to Iran.  http://www.justice.gov/opa/pr/2012/May/12-nsd-629.html

Leading al Qaeda Members Based in Iran

CNN reported the 9/11 Commission found that of the 19 hijackers, "8 to 10 of the 14 Saudi "muscle" operatives traveled into or out of Iran between October 2000 and February 2001."  According to reporter Peter Bergen, Iran has been a safe haven to al Qaeda for over ten years.

Tax Fraud Technology Monitored by France and Germany

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 75 from the counties of France and Germany.  Why would those countries be so interested in learning about EITC tax fraud technology in the United States?

Why is the IRS Afraid to Use FREE Technology to Protect Troops?

The Supreme Court has said that if you willfully defraud the US government by filing false tax returns you can be deported. One year ago I offered to test 30 million EITC tax returns in 30 minutes…   for FREE.  The IRS said they couldn’t accept my offer unless I resubmitted my entire proposal.  Since tax season was commencing the following month, there wasn’t any chance that the IRS would have approved my “free offer” in order to save taxpayers $3.7 billion.

Tea Party Scandal is Small Potatoes Compared to Massive IRS Corruption

During the last year the IRS:  1) lied about conducting $3 billion tax fraud investigation, 2) broke business promises, 3) violated federal laws, 4) was caught in a sting operation that proved IRS was taking credit for conducting phantom investigations, 5) snubbed Congressional inquiries, 6) was guilty of conversion when government workers cashed paychecks for work never performed and 7) committed honest services fraud (federal felony) by failing to provide the public with the intangible right of honest service.  I asked the US Department of Justice Tax Division for help to investigate potential felonies committed by IRS employees. They responded eight months later and stated that the DOJ “lacks jurisdiction over the alleged offenses”.  As long as the fox is in charge of the hen house, the farmer will never find out the truth about his missing chickens or an explanation on why the fox has feathers coming out of his mouth.

Congress Needs to Connect the Dots to Terrorism

Back in 1980 when I filed my tax return it wasn’t unusual to wait 8 weeks for a refund in the mail.  Technological advancements allow folks to receive their refunds in 7 to 10 days.  I suspect a huge number of tax frauds need to pay off their Christmas charges.  Why does getting money in the pockets of Black Friday shoppers take precedence over American troops?  The IRS has morphed into the largest fraudulent legal entity in the United States.  I estimate that of the $250 billion paid in tax refunds during the next three months $50 billion will be placed in the hands of tax frauds, career criminals and world terrorist.   

Time for National Sales Tax to Protect Americans

I’m one of the few people in the US that can play the IRS fraud card and back it up.  My dealings with the IRS over the last three years can be summed up with 5 words: powerful, manipulative, dangerous, incompetent and unlawful.  I’ve been a CPA for over 30 years and I’m Certified in Financial Forensics.  I’ve accumulated irrefutable evidence that the IRS is committing felonies. The recent Congressional hearings haven’t accomplished anything.  The Tea Party needs to use its power and influence and demand Congress dismantle the IRS because their severe level of incompetency threatens the safety of American troops and safety of ALL US citizens.  Let’s get Congress working on a national sales tax that would take the place of filing a tax return for anyone earning less than $250,000/yr.  This would accomplish four things: 1) allow everyone to pay their fair share, 2) prevent US Treasury from being defrauded $50 billion, 3) reduce the IRS workforce from 100,000 to 10,000 and 4) allow military parents the peace of mind knowing that the IRS isn’t funding weapons that could be used to kill their children.

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.