Earlier part of the story: <a href="https://www.justice.gov/usao-sdfl/pr/daughter-father-charged-filing-lottery-ticket-tax-refund-claims-seeking-175-million" rel="nofollow">https://www.justice.gov/usao-sdfl/pr/daughter-father-charged...</a><p>Submitted article was <a href="http://www.idahoreporter.com/2019/florida-man-got-3-4-million-in-tax-refunds-from-irs-after-claiming-to-win-lottery-he-never-won-authorities-say/" rel="nofollow">http://www.idahoreporter.com/2019/florida-man-got-3-4-millio...</a> ("Man got $3.4M in tax refunds from IRS after claiming to win lottery he never won"). Changed via <a href="https://news.ycombinator.com/item?id=21873501" rel="nofollow">https://news.ycombinator.com/item?id=21873501</a>.
Tax refund fraud is big business.<p>These two are not very smart. The smarter criminals steal someone’s identity, file a fraudulent tax form using their identity, steal the refund, and then let that poor soul deal with the IRS when it comes after them to get their money back.<p>If you ever try to file and get a notice that you already filed, jump on it right away because you may have been targeted.
I'm surprised at the large sums of money the IRS was willing to send out with essentially zero validation.<p>These people were claiming they had paid the IRS millions of dollars and were due massive refunds, but there is nothing in place to check what the IRS has <i>actually</i> received from individuals before cutting 6-7 figure checks?
The IRS is starved for funds. The powers at be (wealthy) wouldn't benefit from aggressive enforcement of tax law.<p><a href="https://www.propublica.org/article/how-the-irs-was-gutted" rel="nofollow">https://www.propublica.org/article/how-the-irs-was-gutted</a>
Still paid out with no other corroborating anything. Makes you wonder how often this happens with people that actually have money, and could turn around and say woops.<p>"According to the affidavit, K. Edmonson filed a fraudulent tax return in September 2017 seeking a refund of approximately $725,111. The return contained false and fraudulent claims that K. Edmonson had paid a substantial amount of withholding taxes. The IRS did not receive corresponding forms to support the claimed payments. Despite the false nature of the tax return, on January 28, 2018, the Department of Treasury mailed a tax refund check to K. Edmonson for $734,266.27 (including $9,036.27 in interest). Shortly thereafter, K. Edmonson deposited this tax refund check into his bank account."
It will never cease to amaze me that the US DOJ and media publish full names. In The Netherlands, only the first name and the first letter of the last name will be made public—and the full name could remain a secret for many years.
Wait, so they report earning some large amount of money, and claim they overpaid taxes on that? And then get a refund?<p>... is that seriously all it took?
Related Topic:<p>You have to Paid Tax for Winning Lottery in US? Assuming that is how the Refund is taking place because of prior tax paid.<p>What other countries have similar law? I was always under the impression Lotto is free from Income tax, at least that is the case in UK and AUS.<p>The <i>tax</i> system in US, judging from reading online media, especially with filing tax, credit, etc are so complex and felt so foreign to many abroad, where really dont have to do much.
Is this a real site? It looks fake, and the writing is super weird.<p>Here's the DOJ version:<p><a href="https://www.justice.gov/usao-sdfl/pr/daughter-father-charged-filing-lottery-ticket-tax-refund-claims-seeking-175-million" rel="nofollow">https://www.justice.gov/usao-sdfl/pr/daughter-father-charged...</a><p>It has more information, is better written, and is from April.