One of the Tax Division’s highest priorities is prosecuting people who use stolen identities to steal money from the United States Treasury by filing fake tax returns that claim tax refunds. Working to stop Stolen Identity Refund Fraud, or SIRF, is vital because these schemes threaten to disrupt the orderly administration of the income tax system for hundreds of thousands of law abiding taxpayers and to cost the United States Treasury billions of dollars.

SIRF crimes are complicated to prosecute because they are often perpetrated by large criminal enterprises with individuals at all stages of the scheme: those who steal the Social Security Numbers (SSN) and personal identifying information, those who file false returns with the Internal Revenue Service (IRS), those who facilitate obtaining the refunds, and the masterminds who promote the schemes. These criminal enterprises are able to exploit the speed and relative anonymity of highly automated systems for storing personal information, preparing and filing tax returns electronically, and generating income tax refunds quickly—often in the form of electronic payments.

Identities used in SIRF crimes may be stolen from anywhere. SIRF criminals have used social security numbers stolen from institutions such as hospitals, nursing homes, and public death lists, thereby exploiting some of the most vulnerable members of our communities—the elderly, the infirm, grieving families. However, everyone with a social security number is potentially vulnerable to having their identity stolen. According to the IRS, from 2008 through May of 2012, the Service has identified more than 550,000 taxpayers who have had their identities stolen for the purpose of claiming false refunds in their names.

Click here to read the entire article: http://www.justice.gov/tax/Stolen_Identity_Refund_Fraud.htm

The Tax Division has had considerable success in SIRF prosecutions, which have generated long sentences for those convicted of SIRF crimes. This page contains links to articles, websites, and press releases with information on how the Justice Department and IRS are dealing with SIRF crimes, guidance for citizens whose identities have been stolen and used to file false tax returns, and efforts of the Justice Department to prosecute these crimes – Kathryn Keneally, Assistant Attorney General for the Tax Division   Press Release Announcing SIRF Enforcement Initiative

Connect with Linda at 310-831-4400 or at info@theidentityadvocate.com to mobilize your efforts of protection and recovery when it happens to you!

As another year comes to an end and we prepare our tax returns, the IRS and other government officials are preparing for an increase in tax refund identity theft. In 2011, the IRS missed over 1.1 million fraudulent tax returns and paid out over $3.6 billion in fraudulent tax refunds.

Fortunately, this year they’re taking more precautions to protect taxpayer identities. Even with these precautions, it’s important for you to know how to protect yourself from becoming another victim of tax refund identity theft.

How to Know if Your Tax Return or Records Have Been Affected

Identity thieves file fraudulent tax returns using legitimate taxpayers’ information. They file a fake tax return on your behalf, collect the refund, and repeat the process with another taxpayer. They often do this early in the tax season—before you are likely to file yours—so you’re often unaware a fraudulent tax return was even submitted in your name until much later.

Taxpayers only discover they’re victims of tax refund identity theft when they attempt to file a legitimate return. The IRS will reject the tax return and typically sends a notification stating that:

• More than one tax return has already been filed
• There is a balance due or collection actions have been taken for unfiled tax returns
• The IRS has realized you’ve received wages from employers that you don’t know

If you receive any notification from the IRS, you must respond immediately. You will be required to fill out IRS Form 14039 if you believe you’re the victim of tax refund identity theft.

Tips for Protecting Yourself From Tax Fraud

There are many things you can do to prevent identity theft when you submit this year’s tax return. While you should always protect your personal information, you should also:

• Sign-up with ID Theft Solutions, the only identity theft protection company managed by law enforcement that restores your identity back to pre-theft status.
• Never carry your Social Security card with you or any documents that have your Social Security number on it. If your purse/wallet is lost or stolen, a thief can easily gain access to your identity.
• Never give out your Social Security number just because someone requests it—especially a supposed phone call from a government official. The IRS will never initiate contact with you via the phone, so you are probably speaking with someone who is trying to commit tax refund identity theft. If you have any questions about the status of your tax return, hang up and call the IRS directly.
• Lock up or shred documents containing personal information or financial data.
• Review your credit report from each of the three major credit bureaus at least once a year for any fraudulent activity.
• Use firewalls, anti-virus software, and regularly update your computer’s security patches to avoid giving identity thieves access to your information via the Internet.
• Never give out personal information over email, the phone, or through snail-mail without verifying the sender.

Lastly, always keep your eye on the news for any new consumer reports regarding tax fraud or tax refund identity theft scams that could affect you. The IRS and news outlets often publish examples of fake emails and phone calls scammers use to impersonate IRS officials.

For more information about protecting yourself this tax season or advice to help you avoid tax refund identity theft, visit The Identity Advocate or call 310.831.4400. We can help safeguard your identity throughout the year from all forms of theft (and there are many!). You can also join our mailing list to have identity theft prevention tips delivered to your inbox each month.

Prison inmates claimed $2.5 billion in fraudulent tax refunds in 2012! The inmates say they don’t need a job anymore after receiving the income.

In 2010 more than 91,000 inmate returns claimed $758 million in fraudulent refunds.

See this video: http://grab-media.com/premium-videos/4572781

Forty Defendants Charged in Separate Schemes that Resulted in Thousands of Identities Stolen and Millions of Dollars in Identity Theft Tax Filings
U.S. Attorney’s Office October 10, 2012

Southern District of Florida (313) 226-9100

MIAMI—Federal charges were filed today against 40 defendants in 20 separate cases, dealing with thousands of stolen identities and millions of dollars of fraudulent identity theft tax filings. Today’s cases reaffirm the joint federal and local commitment to crack-down on stolen identity tax refund (SITR) fraud perpetrators.

The charges were announced by Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida; Richard Weber, Chief, Internal Revenue Service-Criminal Investigation Division (IRS-CI); Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS); Michael B. Steinbach, Acting Special Agent in Charge, FBI, Miami Field Office; Antonio J. Gomez, Acting Inspector in Charge; U.S. Postal Inspection Service (USPS), Miami Division; Guy Fallen, Special Agent in Charge, Social Security Administration, Office of Inspector General (SSA-OIG); Kelly R. Jackson, Special Agent in Charge, IRS-CI, St. Paul Field Office; Steven Steinberg, Chief, Aventura, Fla., Police Department; Larry Gomer, Interim Chief, North Miami Beach Police Department; and Juan Santana, Chief, Miami-Dade Police Department.

According to the Federal Trade Commission, Florida had the highest rate of identity theft in the United States in 2011. While identity theft in Florida ranks highest in the United States, the identity theft rate in Miami has reached near epidemic proportions. Florida’s rate of 178 complaints per 100,000 residents—the highest in the United States—is dwarfed by the Miami rate of 324.1 complaints per 100,000 residents.

Moreover, a September 2012 report by the U.S. Treasury Inspector General for Tax Administration (TIGTA) determined that Florida has the highest rate of stolen identity tax refund fraud in the United States. The report identified 74,496 potentially fraudulent returns filed in Miami resulting in more than $280 million in bogus refunds. Miami’s per capita number of false returns based on identity theft was 46 times the national average, and its per capita SITR fraud dollar value was more than 70 times the national average. This problem is projected to grow: the TIGTA report estimates that the IRS could issue as much as $21 billion in fraudulent tax refunds over the next five years.

In an attempt to combat the rising wave of stolen identity refund scams, and armed with newly enhanced investigative and prosecutorial tools under the Department of Justice’s Tax Directive 144, the U.S. Attorney’s Office for the Southern District of Florida established the South Florida Identity Theft Tax Fraud Strike Force. The members of the strike force include IRS-CI, U.S. Secret Service, FBI, USPS, City of Aventura Police Department, Miami-Dade Police Department, North Miami Beach Police Department and the SSA-OIG. The focus of the strike force is to investigate and prosecute SITR fraud in the Southern District of Florida. Today, U.S. Attorney Ferrer, joined by members of the Identity Theft Tax Fraud Strike Force, announced the most recent results of their investigative efforts.

U.S. Attorney Ferrer said, “So far this year, we have charged a total of 79 individuals responsible for almost $40 million in fraudulent tax refunds obtained through identity theft. The cases being investigated and prosecuted include victims from all walks of life, including police officers, potential U.S. Marine recruits, members of the Armed Forces, holocaust survivors, school children, hospital patients, the elderly and infirm, incarcerated prisoners, and even the dead. In addition, our cases show a troubling change in the nature of these cases, away from traditional white collar criminals to more violent criminals, like gang members and narco-traffickers, who are using stolen identity refund scams to fuel their other, violent, criminal activities. We will continue to crack down on identity thieves who are lining their pockets with our tax dollars and using violence to obtain the personal identification information of others.”

“Today’s announcement should reassure American taxpayers that IRS Criminal Investigation has put into action our pledge to make investigating identify theft and refund fraud a top priority,” said IRS-CI Chief Weber. “Be assured that we are serious about investigating these crimes and, as we capitalize on the collective strength of the Identity Theft Tax Fraud Strike Force, we will succeed in vigorously pursuing the criminals who steal from the American taxpayer.”

“The U.S. Secret Service is glad to be an integral part of the Strike Force coordinated between the U.S. Attorney’s Office and the Internal Revenue Service to combat this fraud scheme that is plaguing South Florida,” said USSS Special Agent in Charge Reid.

“Identity theft tax fraud has reached an epidemic level and these cases demonstrate that the FBI and its law enforcement partners will devote considerable resources to address the issue,” said FBI Acting Special Agent in Charge Steinbach. “Prevention by way of educating the public is also key to reducing the amount of this type fraud. Consequently, we urge the public to visit www.ftc.gov or www.ic3.gov, as it provides detailed information on how to help deter, detect, and defend against identity theft.”

Acting Inspector in Charge of the Miami Division of the USPS Gomez said, “As a member of the Identity Theft Tax Fraud Strike Force, the U.S. Postal Inspection Service will work diligently with the U.S. Attorney’s Office and with law enforcement at the federal, state and local level to protect American citizens from suspects who prey on their identification for financial gain. Our commitment to the South Florida community is to continue to pursue these cases under Mr. Ferrer’s leadership and guidance so that the U.S. Mails are never used as a conduit to defraud unknowing victims of this type of crime.”

Special Agent in Charge of the SSA-OIG Fallen said, “Assuming the identity of another to commit fraud, unfortunately, is a common occurrence. SSA-OIG special agents are well-trained to detect, investigate, and locate identity thieves, and SSA/OIG, in concert with the U.S. Attorney’s Office, will investigate and prosecute those who commit identity theft and defraud Social Security trust funds.”

“It is through the collaborative efforts of our agencies that we have been successful in investigating and prosecuting tax fraud in Miami-Dade County. We are pleased with the outcome and will continue to work together with our partner agencies in order to make positive impacts on our community,” said Miami-Dade Police Department Chief Santana.

An indictment is only an accusation, and a defendant is presumed innocent unless and until proven guilty.

The cases announced today include:

United States v. Serge St-Vil, et al., Case No. 12-20768-CR-Scola
United States v. Rodney Saint Fleur, Case No. 12-20772-CR-Scola
United States v. Lineten Belizaire, et al., Case No. 12-20763-CR-Altonaga
United States v. Frantz Pierre, et al., Case No. 12-20696-CR-Cooke
United States v. Jean Noel, et al., Case No. 12-20740-CR-Dimitrouleas
United States v. Douglas Michael Young, et al., Case No. 12-20767-CR-Dimitrouleas
United States v. Bridgette Piedra and Jane Piedra, Case No. 12-20761-CR-Ungaro
United States v. Rose Mary Steed and Demetrice Nicole Steed, Case No. 12-20773-CR-Huck
United States v. Michael Wilson, Case No.12- 60253-CR-Cohn
United States v. Johnny Alexander Melo, Case No. 12-20762-CR-Graham
United States v. Arthy Icart and Charlton Escarmant, Case No. 12-20764-CR-Lenard
United States v. Michlson LaRochelle, Case No. 12-14074-CR-Graham
United States v. Alexander Louis, Case No. 12-60250-CR-Williams
United States v. Vildeon Sajouse, Case No. 12-3364-MJ-Palermo
United States v. Frantz Auguste, Case No. 12-3363-MJ-Palermo
United States v. Cesar Coureaux, Case No. 12-20708-CR-Altonaga
United States v. Math Benjamin, Case No. 12-20707-CR-Cooke
United States v. Thierry Audren, Case No. 12-20738-CR-Williams
United States v. Natoya Mashea Handy, Case No. 12-20771-CR-Rosenbaum
United States v. Luis Enrique Ledee Bernard a/k/a Luis L. Bernard, Case No. 12-20776- CR-Moreno