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$12.1 million in Fraud under one EFIN?

May 11th 2011
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IRS seems to have recovered about $1.5 million or so of the stolen money according to this Forbes article.

Will they ever recover the other $10 million?

Do they even know who is behind this fraud?

IRS issued an EFIN to some fellow who was paid $1,000 to obtain it.

Did any of your clients have a problem getting their tax returns filed because someone else had already filed a tax return using the SSN of the deceased? Since we often put those tax returns on extension - this crook had plenty of time to file early and claim any refundable credits they could grab.

I think this kind of fraud could have bene easily prevented. But it would have taken some common sense to do it.

There is SO much fraud related to refundable credits - and most of those returns are filed electronically. Even before the PTIN program, IRS could have kept it under better control by screening EFIN applicants better.

Just because the states had no minimum licensing requirement, doesn't mean IRS couldn't establish mininum expertise requirements in order to obtain a coveted EFIN. Instead, IRS pushed everyone and his idiot cousin to register to file electronically. As a result, we get guys like this one, who probably have clean, boring records - being paid $1,000 to file an application that he will never use.

Do you think the new Registered Tax Preparer Program is going to change this?

Do YOU have any solutions or ideas?


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By Gannon Service Bureau
Jun 26th 2015 01:12

I agree that there should be some minimum tests to get your EFIN. Aside from passing suitability and waiting, there really isn't anything more. As a tax software provider myself, many of my clients who have EFINs end up growing their practice by taking on folks with PTIN's, however, I can see how it's easy to take someone under your wing who you've never met, and trust them with your returns under your EFIN. All ERO's should be reviewing the preparer's returns before filing, of course, but there needs to be more accountability on behalf of the ERO.

FREE Tax Software & FREE Bank Products from Santa Barbara Tax Products Group (TPG) and 855-GANNON-1

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