$12.1 million in Fraud under one EFIN?
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?