The IRS, Tax Related Identity Theft and the 2014 Filing Season ...

Once again, the Internal Revenue Service is warning taxpayers to watch out for identity theft at tax time. In a recent press release, the IRS says that it continues to aggressively pursue criminals who file fraudulent returns using someone else’s Social Security number.

“We remain dedicated to stopping tax-related identity theft and protecting taxpayers, and we are making important progress on that front. Taxpayers still need to be extremely careful and do everything they can to avoid becoming a victim,” said IRS Commissioner John Koskinen. “Scams can be sophisticated and take many forms. We urge people to protect themselves and use caution when viewing e-mails, receiving telephone calls or getting advice on tax issues. Keep your personal information safe and secure. Taxpayers should protect their computers and only give out their Social Security numbers when absolutely necessary.”

Tax-related identity theft occurs when someone uses your stolen Social Security number to file a tax return claiming a fraudulent refund. The IRS claims that as a result of its aggressive efforts to combat identity theft from 2011 through October 2014, the IRS has stopped 19 million suspicious returns and protected over $63 billion in fraudulent refunds.

In 2015, the IRS will continue to increase both the number and efficiency of the identity theft data models and filters that are used to identify potentially fraudulent returns. These pre-refund filters stop the vast majority of fraudulent returns. Additionally, the IRS continues to expand its partnerships with financial institutions to identity and stop fraudulent refunds.

Fighting identity theft is an ongoing battle as identity thieves continue to create new ways of stealing personal information and using it for their gain. Identity theft cases are among the most complex handled by the IRS. The IRS is continually reviewing processes and policies to minimize the incidence of identity theft and to help those who find themselves victimized.

In an effort to help victims, the IRS has issued approximately 1.5 million Identity Protection PINs (IP PINs.) The IP PIN is a unique, six-digit number that is assigned annually to victims of identity theft with resolved cases for use when filing their federal tax return. The IP PIN will allow these individuals to avoid delays in filing returns and receiving refunds.

IRS Criminal Investigation, the part of the IRS responsible for investigating tax-related identity theft and seeing that these criminals are prosecuted, continues its robust efforts according to the IRS. In Fiscal Year 2014, the IRS initiated 1,063 identity theft-related investigations. Criminal Investigation enforcement efforts resulted in 748 sentencings as compared to 438 in FY 2013, an increase of 75 percent. The incarceration rate of its prosecutions rose to 87.7 percent as compared to 80.6 percent in FY 2013. The courts imposed significant jail time with the average months to serve in FY 2014 at 43 months as compared to 38 months in FY 2013, with the longest sentencing being 27 years.

A review of court records in the Southern District of New York and the Eastern District of New York demonstrates the work the federal government is doing to combat tax related identity theft in the New York City – metropolitan area:

· Juan Bello was sentenced to 15 months in prison on October 22, 2014 for theft of public funds. He was ordered to pay restitution of $674,413.71.

· Alexis Betancourt was sentenced to 15 months in prison on October 2, 2014 for conspiracy to defraud the United States, theft of government funds, aggravated identity theft, bank fraud and transporting stolen merchandise. He was ordered to pay restitution of $952,000.

· Marvin Brizard was sentenced to 84 months in prison on December 18, 2014 for conspiracy to submit false income tax claims, filing fraudulent claims on income tax returns, wire fraud and aggravated identity theft. He was ordered to pay restitution of $1,052,491 to the Internal Revenue Service.

· Peter Corideo, Jr. was sentenced to time served and 3 years of supervised release on October 15, 2014 for conspiracy to defraud the United States with respect to claims and postal theft. He was ordered to pay restitution of $300,000 to the Internal Revenue Service.

· Carlos Jaquez was sentenced to 30 months in prison on January 20, 2015 for conspiracy to steal government funds and identity fraud conspiracy. He agreed to forfeit $404,907.45. Jaquez was indicted with Carol Diaz, Marino Burgos and Julia Montesinos.

· Abdou Kone was sentenced to time served and 5 years supervised release on October 21, 2014 for conspiracy to commit bank fraud, bank fraud and conspiracy to commit fraud in connection with identification documents. Kone was indicted with Abdulaye Sako, Rodrigue Tanguy Kumassi, Jean Marc Moulet and Jose Rodriguez.

· Bismark Opoku was sentenced to 3 years of probation on November 6, 2104 for conspiracy to defraud the United States with respect to claims and theft of government funds. He was ordered to pay restitution of $46,864. Opoku was indicted

· Miguel Pena was sentenced to 6 months in prison on October 3, 2014 for theft of federal funds. He was ordered to pay restitution of $150,285 to the Internal Revenue Service.

· Jason Schmidt was sentenced to time served on November 5, 2014 for conspiracy to defraud the United States, conspiracy to steal mail and delay or destruction of mail.

· Ricardo Taboada was sentenced to 48 months in prison on October 1, 2014 for conspiracy to defraud the United States with respect to claims, theft of government funds, conspiracy to commit fraud in connection with identification documents, aggravated identity theft, conspiracy to commit money laundering, access device fraud, wire fraud, bank fraud and making false statements. He was ordered to pay restitution of $1,489,894.

· Angel Vasquez was sentenced to 18 months in prison on October 17, 2014 for conspiracy to steal government funds and theft of government funds. He was fined $6,000. He was also ordered to pay restitution.