By Anonymous Patriots
Under normal circumstances we would be thrilled to hear that the Internal Revenue Service is auditing fellow tax payers with as much rigor as they are currently doing in sending out over 20 million letters to current year filers for refundable tax credits. This includes filers who claimed earned income tax credits, child tax credits, additional child tax credits, and educational credits. The IRS sent out pre‐emptive letters over the last two weeks to early filers that they must call or visit a local IRS office to prove income, dependents, social security numbers, and eligibility.
Reports from local IRS officials, indicate that field offices, particularly those in urban areas, are experiencing high volume traffic with people coming in to discuss the legitimacy of their 2015 tax returns.
Civil Unrest
What do you think might happen in urban areas when hundreds of thousands of folks don’t get their government refunds this year? We already hear that our local IRS urban office has armed security stationed in the lobby.
Patriots need to be vigilant of unrest in our urban areas this year as the threat of martial law is looming and our urban areas seem to be powder kegs just waiting for a match.
Not receiving one’s usual and customary refund from the government might be the very match that sets off civil unrest in our cities this year.
Could Save Taxpayers $100 Billion
It appears that Internal Revenue Service Commissioner John Koskinen has given the approval for general collection agents to be reassigned to assist field offices in shoring up the huge losses government has each year with fallacious filings of earned income credits. The move is pre‐active as it is difficult to collect refunds from previous years for these bogus returns. By sending out proof‐of‐documentation letters, the IRS hopes to keep up to 20 million fraudulent claims from being funded this year.
We have been told by IRS officials that the average “refund” given to earned income credit claimants is about $5000. Based upon this average, it would appear that the IRS would could save up to $100 billion in erroneous tax refunds.
For many claimants, earned income credits have been used as extra income to bolster low household income. Because the penalties for filing these false returns have been little to none, unethical tax preparers benefit from clients who file for the earned income credit. Tax preparers get a cut of the refund for their fees before the full refund is issued to the tax claimant.
The problem that arises for anyone who filed a false return as they find themselves in an income conundrum. For example, assuming that a claimant filed a false tax return and is now being called out with an IRS letter in this week’s mail:
- They cannot get unemployment benefits if they already claimed to be working in order to receive the earned income tax credits. (Most filers in this category claim to be in home based businesses.)
- Social security numbers are being cross‐checked, especially for fake dependents, which is easy to do now that Obamacare requires proof of insurance by social security numbers. The agency in charge of checking both is the IRS.
- Receipts and proof of income and expenses are being physically required when the letter recipient comes into the agency. Filers are being required to contact the IRS with appropriate documentation before any refunds are issued.
- Filers claiming education credits must prove proof of tuition payments.
Delayed Response and Refunds
For those waiting for your general IRS questions, either in person or by phone, to be answered, be patient as it looks like there are millions of folks before you. And if you see a delay in your normal refund, you might understand why.
Stay Vigilant.