Few Interesting Facts About Tax Fraud In USA.
Tax fraud is an increasing problem in USA and is a great nuisance for IRS. Tax-refund fraud is expected to soar again. IRS has already caught approximately 35,000 fraudulent e-filed tax returns and 741 paper tax returns as of Feb. 29, 2016. Here are some interesting facts about tax fraud: 1: The typical tax evader in the United States is a male under the age of 50 in the highest tax bracket and with a complicated return, and the most common means of tax evasion is overstatement of charitable contributions, particularly church donations. 2: Around 90 percent of people who employ babysitters and housekeepers end up cheating on their taxes. 3: If you report against your company/employer for tax evasion, you can earn 30% of the amount collected. 4: The IRS estimated that, by filing tax documents using the identities of real people, fraudsters collected at least $5 billion in 2013 from the agency. 5: Walter Anderson an American telephone entrepreneur who was arrested and convicted in the largest tax evasion case in United States history. He was accused of hiding his wealth in offshore companies in Panama and the British Virgin Islands in an attempt to avoid taxation on his income. The Federal District Court of Washington DC later determined that Anderson did not have substantial financial resources. The companies that Mr. Anderson managed reportedly earned nearly $500 million in revenue during a five-year period. 6: Florida is the state with most identity theft complaints per capita, which is approximately 5 times greater than the state (South Dakota) with least number of complaints . 7: The IRS can issue an audit up to 3 years after your taxes were filed and up to 6 years later if you are suspected of underreporting your income by at least 25%. If you are suspected of fraud, the limit is indefinite. 8: Molson Coors paid no taxes in 2009, and was actually paid $14.7 million by the government. The company used its UK and Canadian based businesses to house gains, paying lower taxes in those countries. Coors also deferred taxes to future years. 9: GE made $10.3 billion in pre-tax income in 2008, but didn't have to pay a single cent in taxes. GE has two divisions, one is the manufacturing and media company, and the other is its financial arm. GE Capital is U.S. based and had significant losses, which allowed it to not pay taxes, while the company's offshore divisions made gains on which they did not have to pay taxes. 10: Bank of America paid no taxes in 2009, even though it made $4.4 billion income. Bank of America utilized a series of tax deductions for losses to offset its taxes, while also taking advantage of the government's $49 billion backstop for credit losses. Although facts 8, 9 and 10 could be interpreted as fraudulent but they are considered tax loopholes exploited by major US corporations. Source: https://wallethub.com/edu/states-where-identity-theft-and-fraud-are-worst/17549/#main-findingshttps://en.wikipedia.org/wiki/Walter_Anderson_(entrepreneur)