Here is the suggested Internal Revenue procedure for tax fraud and identity theft:
Get a good copy of your Social Security card, passport and driver's license
File a police report
File Internal Revenue form 14039
Notify the FTC at 877-438-4338
Notify Social Security at 800-772-1213
Notify the Equifax at 800-525-6285
(it notifies other credit bureaus)
Google identity theft at IRS.gov
Read Internal Revenue Publication 4535
The Treasury Inspector General for Tax Administration (TIGTA) rand Congress were recently both focusing on identity theft and tax fraud. TIGTA released a report on tax fraud involving identity theft on the same day the House Ways and Means Oversight and Social Security Subcommittees held hearings on it. However, this again shows what President Regan said in his first inagural address:
Government is not the solution to our problem; government is the problem.
We see that government is the problem because:
Internal Revenue Protects Felons, Tax Identity Theft
Health Care Law Promotes Identity Theft
The more you look at the 2,300 page Health Care law, the more outrageous it becomes. The latest insanity shows that the Health Care law promotes identity theft.
The Health Care law makes credit card companies report almost all transactions, totaling $600 or more a year per recipient, to Internal Revenue. It makes other businesses do this, for non-credit card purchases, in 2012. The four billion new 1099s will cost businesses more than $1 trillion over 10 years, while cutting tax revenue by around $250 billion. Health Care Law cost estimates omit these extra hidden costs.
Even worse, businesses can minimize their costly new 1099s by using costly credit cards and cutting the number of suppliers. The Internal Revenue Taxpayer Advocate is among those saying that this will devastate the small businesses that create 80%+ of new jobs.
We also now know that the Health Care law promotes identity theft on a massive scale. There were 23 million sole proprietorship returns in 2007. 18 million businesses had no employees in 2002. That means that 20 million or so sole proprietorships now have no Employer Identification Numbers. Unless most get these numbers, the Health Care law will make them give the Social Security numbers of their owners to all their suppliers. This means the Health Care law clearly promotes identity theft.
Others wrote about this as H&R Block takes HSBC to court to save RALs. I used H&R Sues to Defraud due to the many class action lawsuits against H&R Block over RALs.
RALs are income tax refund anticipation loans, which often carry interest rates of 100%+ (a former long time H&R employee said he often saw annual rates of 200% to 300% a year). H&R RALs involved billions in lawsuits and very large settlements. Many related to big undisclosed kickbacks H&R Block got from finance companies. H&R did not count these kickbacks in calculating required true annual interest rates. Accordingly, it was no accident or simple fraud, but a probable deliberate management decision to commit massive fraud.
This top management decision (lead corporate attorney) also applies to when H&R induced one attorney to expand his class to include all plaintiffs in other suits, so they could exclude other attorneys. Then they settled with this attorney for a low amount. An appeals court overturned the effort, barred the attorney from further involvement and, I believe, referred him to the Bar Association for sanctions. These are some of the reasons I believe there should have been a RICO Act seizure of all H&R assets, with top executives in jail. Instead, H&R Sues to Defraud by continuing RALs.
There was such a big stink from RAL practices that Internal Revenue will no longer have an indicator of initial RAL return acceptance. Without this, many banks will drop RALs as unsafe. HSBC may have an agreement with H&R to issue RALs, but it appears to not be taking steps with Internal Revenue to get them. Therefore, now H&R sues to defraud (at least mislead) clients and possibly HSBC.
Criminals use many methods to steal personal information from taxpayers. They can use your information to steal your identity and file a tax return in order to receive a refund. Here are ten things the IRS wants you to know about identity theft so you can avoid becoming a victim.
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