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IRS missing billions of tax dollars in ID theft

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    Identity thieves cash in with false tax returns

  • Duration 3:14
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From that may have lost more than five billion dollars last year to identity thieves filing false tax returns.

That's according to the Treasury Department investigators -- report the Internal Revenue Service -- Fraudulent returns claiming more than six billion dollars from Uncle -- but.

Billions more also fell through the cracks the investigators say -- often take the identities of dead people children.

Or others who would not ordinarily file a tax return the first place.

And those investigators warned that if the trend continues as much as 21 billion dollars and taxpayer money could go down the drain.

Over the next five years with us now -- John -- -- he's an identity theft expert and CEO.

Of the Silvio group and identity theft prevention consulting firm John good to -- you mean.

Why is -- such a growing problem we just getting better at duping the IRS.

You know it's actually been a problem for some time that's I think because it hurt that report from the -- group.

It's kind of brought this festering sore to the surface but this has been going on her for -- -- years.

Is that -- -- John occasion you look at the air traffic control system in this country in its antiquated you know it's -- it needs to be replaced it is it kind of a sense that you have that the IRS system the computers they can't really cross check -- can't do the proper things that need to be done these scenarios.

Just there's a there's a couple of things number one there is this filing gap which is that we can file taxes as individuals starting in mid January.

But businesses.

Employers in financial institutions.

They don't have to send out there income data for people until the end of march.

So there's this window of opportunity win that effectively -- Harris is working in the dark.

They don't have the numbers.

If somebody files for a refund they don't have anything to measure it against.

And then yes there's there's systems issues.

Is it is it partly because that tax system is such a train reckoning.

You know would get tax attorneys they can't figure out the entire -- -- is it because look if if we can figure out loopholes the crooks can clearly figure out loopholes in the system right.

Yet -- -- they're figuring them out first and you know one of the great examples is there were 2100 returns filed.

At a single address in in Michigan.

You know they always want to address which shows us that there are not the proper red flags when when there are duplicate records.

You know multiple.

Record multiple refunds given a one Social Security number 21 -- being sent -- to address those are basic.

Software changes and and frankly you know this isn't all just the IRS I mean we as individuals are responsible as well.

Other targeting us and that's the whole thing is that -- hit the IRS but they're targeting us and in the -- identity theft from thousands of Americans.

Yet it is and it's it's incredibly damaging and now that the numbers are big and that we see -- -- twenty billion dollars being lost.

That are going to people you know -- to criminals organized crime.

It it really gets people involved and that's what it should be we need to do we need to solve these problems and and we can do where the greatest you know technological.

Nation on earth we we can get it done well.

We can get it done John silly -- identity theft expert John good weekend you sir thank you.

Thanks so much for having me Trace.

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