Posts Tagged ‘IRS scams’

Service of Slipping Through Cracks the Size of the Grand Canyon: I.R.S. Asleep at the Switch

Tuesday, July 5th, 2022


Image by Gerd Altmann from Pixabay

I overdo it by flagging receipts that indicate charitable donations or medical bills throughout the year to help with tax prep and in the event I get a dreaded I.R.S. notification that I’m being audited. It has happened to several friends of modest means and standard sources of income. The I.R.S., which claims it doesn’t have the staff to catch scofflaws, seems to waste time on microscopic fries while letting master cheaters they have been alerted to fly free.

David A. Fahrenthold, Troy Closson and Julie Tate reported on a flagrant example in their article “76 Fake Charities Shared a Mailbox. The I.R.S. Approved Them All.

The American Cancer Society alerted the IRS to one fake–American Cancer Society of Michigan headquartered in a Staten Island PO Box–run by Ian Hosang, previously convicted for stock market fraud and barred from the industry in 1997. Hosang next launched another scam–the United Way of Ohio at the same “headquarters.” The reporters wrote that the “long-running charity fraud that has astounded nonprofit regulators and watchdogs — [and] raised concerns about the I.R.S.’s ability to serve as gatekeeper for the American charity system.” Hosang had also warmed his heels in jail for two years for fraud and money laundering.

According to the reporters, the I.R.S. approved all but one in 2,400 applications from potential charities. “The agency declined to answer questions about Mr. Hosang’s case, citing taxpayer privacy laws. It also declined to make officials available for in-person interviews, but it released a written statement saying that the fast-track approval system ‘continues to reduce taxpayer burden and increase cost effectiveness of I.R.S. operations.'”


Image by Alexas_Fotos from Pixabay

Hosang, who said he was filled with remorse, asked the reporters “’If you file something with an agency and they approve it, do you think it’s illegal?”

In addition to the faux American Cancer Society of Michigan, he created them for Detroit, Green Bay, Cleveland and for Children to name a few–17 in this disease group alone. The real American Cancer Society launched local and national initiatives with a lawyer to alert the I.R.S. “American Cancer Society officials said they never heard back from the I.R.S.”

“The first problem,” wrote the reporters, “according to former I.R.S. officials: Tax law does not prohibit nonprofits from impersonating better-known nonprofits by using sound-alike names. The second: There are no systematic checks for a history of fraud.” They quote a former employee who admitted you could apply for tax-free status from jail.

They reported: “One 2019 study by the agency’s taxpayer advocate found that 46 percent of the applicants it approved were not actually qualified, usually because their charters did not conform to charity law. It also noted that the ‘mission statements’ were often so vague as to be useless. In 2021, federal records show, the I.R.S. approved groups whose mission statements were, in their entirety, ‘CHARITABLE ACTIVITY,’ ‘NON-PROFIT’ and ‘Need to fill in’ (possibly a forgotten note to self).”

There’s more but you get the gist.

Shouldn’t a simple search of prison records be part of a fast-track I.R.S. charity approval system? Given the lax approach to this aspect of the I.R.S.’s responsibility, do you think Joe and Jane Citizen are also pretty safe from scrutiny?

Service of Fakes

Thursday, February 18th, 2016

While art might come to mind first on the subject of fakes, [I covered that angle on Monday], there’s plenty going around that’s unrelated to pictures. Here I describe a telephone wolf in sheep’s clothing who is prowling the phone lines of Dutchess County, NY and a legitimate business that boasts a healthy, suitably ecological–if ersatz–meal in a bottle.

Taxing

I was alarmed last Friday night by a message left on our home phone that went something like this: “I am Denis Grey calling about an enforcement action executed by the US Treasury. You should cooperate with us to help us to help you or this would be considered an intentional attempt to avoid appearing before a magistrate of court or a grand jury for a federal criminal offense.”  Denis gave a phone number to call. He never said my name.  

My husband wasn’t disturbed—he said we’re up to date on our taxes for one thing and that the IRS would write before calling in any case. I felt antsy until I checked out the number online and saw that others had also heard from “Denis,” confirming this IRS scam.

I mentioned the Denis message to the attendant at my dry cleaner and she’d received the same as had the next two customers, one of whom had seen it covered on TV news. Pretty sure that anyone foolish enough to return the call would be asked to confirm their social security number or to provide other personal information.

A few days later I got a text marked urgent supposedly from Chase Bank telling me to call a number with 860 area code immediately. There were a string of others online who had also received the text, some from faux Chase, others Bank of America. One person reported that his text noted that his credit card was deactivated and in order to re-activate it he was prompted to enter his 16-digit card number. Sure. Right away.

Taste Sensation-less

Wall Street Journal columnist Christopher Mins wrote “The End of Food Has Arrived, Finally.” He welcomes a quick and easy way to eat healthy, cheap food [$2.50/bottle] on the run with a bottle of Soylent. He wrote that the company claims that its 400 calories from the plant sources of protein, carbs and fats, contains a quarter of daily nutrients.

The taste of Soylent today is “much evolved from its nearly unpalatable first version,” in Mins’ opinion. Not a novel concept, he lists predecessor meal replacement products such as the wine, bacon and twice-baked bucellatum biscuits ancient Roman soldiers carried to the portable soup Lewis and Clark lugged cross country. He qualifies the drink as “the most recent and highly evolved version of the convenience foods without few of us could function.”

Mins reminds the reader that food is “a deeply personal, cultural and even political phenomenon, which is one reason Soylent touches a nerve. But it’s precisely the time in which we find ourselves—when our humble daily bread pales in comparison to the meals we see on social media, and our health and environmental consciousness becomes more acute than ever—that a generic and convenient food replacement like Soylent starts to make sense.”

Have you ever been alarmed or duped by a scam artist on the phone, by email or text?

Have you tasted Soylent in its first and/or current iterations? Do you seek out less tech-y yet healthy substitutes for a quick meal—like drinkable yogurt–when you are on the run? To ensure that there’s enough food to go ’round, should we force ourselves to opt for foods like Soylent?

 

Get This Blog Emailed to You:
Enter your Email


Preview | Powered by FeedBlitz