TIGTA: Scammers Defraud IRS Out of $1.9 Billion Via Multiple I.D. Numbers

The Treasury Inspector General for Tax Administration released a new report asserting that tax scammers have defrauded the federal government out of $1.9 billion by using multiple taxpayer identification numbers. You can find a summary of their report below (courtesy of The TaxProf), or click here to download a PDF of the full text.

Multiple Use of Taxpayer Identification Numbers Continues to Result in Significant Erroneous Exemptions and Credits (2010-40-117):

Individuals inappropriately received at least $380 million in personal tax exemptions and tax credits in 2007 as a result of the multiple use of Taxpayer Identification Numbers (TINs). ...These TINs were used on over 3.2 million tax returns. Over five years, erroneous exemptions and credits could exceed $1.9 billion.

One in five older Americans is a victim of financial fraud

We hear about it all the time—an older adult being scammed out of their money. A survey released Tuesday as part of World Elder Abuse Awareness Day has found that one out of every five citizens over the age of 65 has already been financially taken advantage of. That’s more than 7.3 million older Americans!

A new program seeks to train medical professionals to assess when older patients might be likely to fall prey to elder investment fraud and financial exploitation. According to Marketwatch.com, this new program, a new partnership between the Investor Protection Trust (IPT), the North American Securities Administrators Association, and the National Adult Protective Services Association (NAPSA) was based on a pilot program that brought fines and prison sentences cases of elder abuse—of note is the case of Edward S. Digges Jr. who raised at least $10 million from about 130 Texas investors, the majority of whom were elderly.

Marketwatch.com reports that according to the Don Blandin, the president and chief executive of IPT, the centerpiece of the new program is the Clinician's Pocket Guide, which contains a list of questions that medical professionals can ask older patients. Doctors can get a sense of their patient's financial capacity by asking the following questions:

• Who manages your money day to day? How is that going?
• Do you run out of money at the end of the month?
• Do you regret or worry about financial decisions you've recently made?
• Have you given power of attorney to another person?
• Do you have a will? Has anyone asked you to change it?

If the answers to those questions raise suspicion, the doctors are then urged to probe for further details by asking whether the patient is having any of the following concerns:

• I have trouble paying bills because the bills are confusing to me.
• I don't feel confident making big financial decisions alone.

Elders at greatest risk of being scammed are those with mild cognitive impairment who can perform most daily functions, but have trouble or become confused with others, such as following their medicine regimen or managing their finances. That will be a lot of people. According to at least one study, more than one-third of the 25 million people over age 71 in the U.S. either have Alzheimer's or mild cognitive impairment. Therefore, that would represent many potential scams.

IRS Warns Taxpayers Of New Scam

The IRS issued a warning this morning regarding a new email scam claiming to be from the IRS’s Criminal Investigation division. The goal of the email to convince the receiver that they are being investigated by the IRS for filing a false tax return. It attempts to get users to click a link or open an attachment that can take over the person’s computer hard drive and allow some one remote access to the computer. The IRS is warning American taxpayers not to click the link or open the attachment in the email. "Everyone should beware of these scam artists," claims Kevin M Brown, Acting IRS Commissioner. "Always exercise caution when you receive unsolicited emails or emails from senders you don’t know." The IRS does not send out unsolicited emails or ever ask for personal information via email. If you receive one of these emails forward it immediately to phishing@irs.gov.