IE 11 is not supported. For an optimal experience visit our site on another browser.

How to steal $12.1 million from the IRS (a continuing series)

It pays to die. Check that. It pays to know who has died. If you then fleece the IRS, that is.After reading on Forbes.com that the IRS paid $12.1 million in bogus tax refunds to 5,000-plus dead people for the tax year 2009, we won’t be using the word “victim.” See, we’re not sure who it applies to. The dead that had their identity stolen? The IRS? Every taxpayer? All of the above?Interesti
Zuma Press file / Today

It pays to die. Check that. It pays to know who has died. If you then fleece the IRS, that is.

After reading on Forbes.com that the IRS paid $12.1 million in bogus tax refunds to 5,000-plus dead people for the tax year 2009, we won’t be using the word “victim.” See, we’re not sure who it applies to. The dead that had their identity stolen? The IRS? Every taxpayer? All of the above?

Interesting scam. Seems the Social Security Administration reports weekly to the IRS who dies. These reports are public, so persistent (note: not necessarily smart nor “computer-savvy”) criminals can then find out the deceased’s vital info, including Social Security number. They then need an Electronic Filing ID Number and boom.

The most open door in this unlocked house? All the claims were filed with the same Electronic Filing ID. It belongs to a Florida guy who says, naturally, he was paid $1,000 to apply for it, but never used it.

Forbes.com notes there have been no arrests yet.

More on the scam and a lengthy IRS response to Forbes.com’s inquiry is on their post.

We have one question: The filing ID always seemed a little stupid. We mean, the IRS got our SSN and bank info when we filed electronically. Why add another link in an obviously breakable chain? Aside from the last steps of e-filing seeming like filling out the same form at the doctor your filled out the last time and the last time and the last time, perhaps the IRS and Social Security Administration should worry about protecting a few, select pieces of information rather than add yet another to an already difficult-to-secure mix.