Inspector Finds IRS Lax in Disposing of Sensitive Docs

Phony returns are on the rise

(NEWSER) - The New York Times today provides some eye-popping numbers on the relatively new crime of identity-theft tax fraud . The IRS stopped 700,000 fake returns in 2010, at least 1.3 million last year, and twice that many so far this year with only 30% of returns reviewed. But the agency also has missed its share, paying out billions in phony returns—and then paying out the legitimate returns later. The scheme is relatively easy to pull off: Criminals get their hands on someone's Social Security number, file an electronic return before the real person does, and receive the money in a hard-to-track debit card from a bank or tax software firm. More»

IRS rules onerous, expatriates say

(NEWSER) - It's April again: time to add up receipts, find little-known tax breaks , and, in some cases, renounce US citizenship altogether. In fact, a record number of Americans abroad renounced their citizenship last year as complaints increased about IRS rules, Reuters reports. One rule forces all Americans to file forms for foreign accounts containing at least $10,000. Another, newer rule stipulates that financial institutions must cough up information on US clients to the IRS. More»

Accountants and tax lawyers share tips for beating Uncle Sam

(NEWSER) - So the New York Times is offering tips for tax cheaters. Guess we know which newspaper will be audited next—but for now, let's take advantage of the paper's survey of 20 tax lawyers, accountants, and policy wonks:

• The easiest way to cheat is ... running your own company—or, more specifically, being the sole proprietor of a Schedule C business. Such tax filers write off tons of personal expenses and payments to family members (even to "infant children," says one CPA).

105 busted in sweep

(NEWSER) - The Internal Revenue Service is cracking down on fraudsters as tax return seasons begins. The agency has stepped up efforts to prevent identity theft, and caught 260,000 bad returns last year, up from 50,000 in 2010, and prevented a total of $1.4 billion in bad refunds being sent out, Reuters reports. New screening measures have been put in place and hundreds of check-cashing operations are being audited. More»

Home state paid for food and lodging for bodyguards

(NEWSER) - Gov. Rick Perry's ill-fated presidential run cost the taxpayers of Texas nearly $800,000, spent on travel fees for the security detail that followed Perry around on his campaign from September through November, a state report reveals. Perry took 48 trips across state lines, mostly to primary battlegrounds Iowa, New Hampshire, and South Carolina. One trip in September from South Carolina to Iowa and back racked up $45,122 in charges, including $10,834 for hotels and $7,526 for food, reports the Austin American-Statesman . More»