Friday, June 29, 2012

The Biggest Tax Return Fraud Ever - Over 2 million Dollars

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An Oregon woman is on the hook for what Internal Revenue Service investigators are calling one of the largest cases of tax fraud in the state's history. Krystle Marie Reyes, of Salem, Ore. allegedly weaseled more than million from the state by filing a false return using automated TurboTax software, according to a police report obtained by Oregon Live. Reyes, 25, reported million in wages and claimed .1 million in returns, which worked its way through TurboTax's system and was approved by the state. Soon enough, a Visa debit card loaded with the refund was in her hands. What's bizarre about the situation is how Reyes was caught. She reported the card as lost or stolen to the issuer, which apparently saw enough red flags to get the state's revenue service on the case. When Reyes was taken into custody June 6, she'd managed to spend about 0000 over a two-month period, including a 00 Dodge Caravan and more than 0 in tires and wheels, according to the police report. It's not clear from the report where the rest of the cash went, though it says she spent tens of thousands of dollars per week. Her case underscores the debate over whether the IRS should issue refunds via debit cards. On one hand, they're a boon to unbanked Americans and enable consumers to see tax returns in under two weeks. But that also means fraudsters can get their hands on cash faster than authorities can catch them. Reyes was running around Salem for two months before authorities cottoned ...
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