Tax Fraud

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Introduction This paper will discuss the topic of tax fraud. We will begin by introducing the basic concepts of tax fraud. Secondly, this paper will also delve into some of the laws that have been passed as punishment for those parties that decide to commit tax fraud. We will also highlight some of the more current examples of tax fraud that have been committed and the details that lead to the perpetrators being caught. Lastly we will discuss the role that criminal investigators have in the realm of tax fraud. Tax fraud can be stated simply as: willfully supplying fraudulent information on tax returns to the Internal Revenue Service (IRS). As we know, no one is perfect and mistakes are made quite often, but the operative word in…show more content…
Current Fraud Schemes There have been many famous tax fraud cases over the years. The ability of individuals to consistently find ingeniously creative ways of committing tax fraud, especially with the magnitude of rules and regulations concerning tax, is astounding. Every year there are thousands of instances of tax fraud schemes taking place, accounting for billions of dollars of lost revenues for the IRS. In 2011 alone, the IRS reported roughly 2 million potentially fraudulent tax returns out of over 145 million tax returns filed.(htt) In addition to highly sophisticated tax fraud schemes, sometimes very simple schemes are able to exist without interference. Of the approximately 2 million fraudulent tax returns filed in 2011, identity theft accounted for about 450,000. (htt) In Tampa, FL for instance, identity theft for the purpose of filing fraudulent tax returns has become more and more prevalent. (htt1) Law enforcement bears witness to thousands of people annually in possession of ledgers, tax filings, lists of SSN’s and personal information, and refund debit cards. However, law states that it is not illegal to simply possess this information, only to use it. Lack of ascertainable proof has forced the police department to allow hundreds of perpetrators go free, creating a very frustrating situation for everyone involved. Similarly, there has been a recent surge in the identity theft of Puerto Rican citizens’ information. Since Puerto
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