1099-OID fraud
1099 OID fraud is a common scam used to obtain money from the U.S. Internal Revenue Service (IRS) by filing false tax refund claims.[1] People have claimed refunds based on the theory that the U.S. federal government maintains secret accounts for U.S. citizens and that taxpayers can gain access to the accounts by issuing 1099-OID forms to the IRS.[2]
Ronald L. Brekke of Orange County, California, was convicted on March 17, 2012, in federal court in Seattle, Washington, of conspiracy and wire fraud in which 1,000 people, most of them Canadian, filed fraudulent U.S. tax refund claims with the IRS. The scam totaled $763 million, but the IRS paid out only $14 million. Mr. Brekke received $400 thousand from his clients.[3][4]
References
- ^ See generally "Common Fraud Schemes," Federal Bureau of Investigation, U.S. Dep't of Justice, at [1]
- ^ "IRS Releases the Dirty Dozen Tax Scams for 2012". US Internal Revenue Service - Feb. 16, 2012. Retrieved 2012-06-27.
- ^ "American convicted in cross-border scam," March 17, 2012, Associated Press, at [2].
- ^ Andrea Chang & Tiffany Hsu, "Orange County man convicted of tax fraud," March 17, 2012, Los Angeles Times, at [3].