Prisoners rake in millions from tax fraud

CNN ^ | 1/30/13 | Blake Ellis

[Libloather]

Just because they're already behind bars doesn't mean they aren't making out like bandits.

Prisoner tax fraud has ballooned in recent years. In 2010, more than 91,000 inmate returns claimed $758 million in fraudulent refunds, a new audit from the Treasury Inspector General for Tax Administration finds. That's more than double the previous year.

While the IRS stopped the vast majority of fraudulent refunds from actually getting into the hands of prisoners, $35 million still slipped through the cracks.

[Libloather]

2 Prison Inmates Claim $1.1 Billion In Tax Refunds; 173,000 Fraudulent Prison Tax Returns Uncovered

Inmate tax fraud reaches scary numbers

Inmates Cash In By Claiming Tax Refunds

[Cowboy Bob]

How can this even happen? Wouldn’t someone in the prison post office get a little suspicious seeing letters addressed to the IRS? On the electronic filing front, can’t the prison block that web address? If the government wanted to stop this fraud, it would seem that there are ways to do this.

[Venturer]

The incompetency of this government amazes even me.

[concerned about politics]

Prisoner tax fraud has ballooned in recent years. In 2010, more than 91,000 inmate returns claimed $758 million in fraudulent refunds, a new audit from the Treasury Inspector General for Tax Administration finds. That's more than double the previous year.

"Someone" said something about spreading other peoples wealth around (to people who don't deserve it).
It looks like he's doing just that. Crimminals deserve a fair shake for some reason. It's the productive American citizens who need to be behind bars. It is they who do not deserve to enjoy the fruits of their own labor (in his screwed up world, anyway).

[Fresh Wind]

How can this even happen? Wouldn’t someone in the prison post office get a little suspicious seeing letters addressed to the IRS?

The article states that the inmates use helpers on the outside. The don't use the prison address, they use the addresses of the inmates' families.

[Carriage Hill]

“Prisoner tax fraud has ballooned in recent years. In 2010, more than 91,000 inmate returns claimed $758 million in fraudulent refunds, a new audit from the Treasury Inspector General for Tax Administration finds. That’s more than double the previous year.”

HTF does that happen? Just fricking amazing it continues with so many thousands of IRS Agents checking returns and claims.

[Aevery_Freeman]

What if it is promoted by the Deppartment of Just Us?

What better way to redistribute money from the evil 1% to the lower class and provide rehabilitation funds at the same time.

Somebody's training them how to do this.

[Fraxinus]

Wouldn’t someone in the prison post office get a little suspicious seeing letters addressed to the IRS? On the electronic filing front, can’t the prison block that web address?

Unfortunately the are a number of prisoners who are filing legitimate claims. They may be a minority, but some of the prisoners had jobs before conviction or are working while in prison for wages and thus have w-2s, and then there is the much rarer prisoner with 1099 income.