Page 1 of 2 1 2 LastLast
Results 1 to 10 of 17
  1. #1
    Join Date
    Oct 2010
    Posts
    12

    Question IRS Won't Investigate Reports of Tax Fraud

    I am a victim of a similar case of social security number fraud.

    I was co-owner of a $20k certificate of deposit with my maternal grandmother who died intestate on April 4, 1989. She had three children, two daughters and a son who was deceased. My mother had apparently moved all her assets into the social security number of a man who had died in 1960. She then got the Commonwealth of Pennsylvania and Medicare to pick up all the bills by claiming her mother was indigent. She convinced her attorney that she was the only heir and she got to keep the hidden assets.

    Following a formal written complaint to the U.S. Dept. of Health and Human Services, the Office of the Inspector General sent Special Agent William E. Glady, Jr. to meet with myself and my council. The meeting took less than 5 minutes. The introduction took longer that what he had to say: “It is the policy of the Bush and Regan Administrations not to investigate family matters. This case is closed.” I’ve never forgotten his words and it’s not the last time I got the shaft because of this ridiculous policy.

    My father is known to have at least three social security numbers that I and my siblings know about. He has used them on of his Schedule K-1 (Form 1120S) to shift money out of his S corporation numerous times over the last 30 years. On the years he does so the is a “0” in the line for that year on his social security deposit statement. Apparently the IRS doesn’t bother to see if the SSN’s match.

    When we approached the IRS and the Commonwealth of Pennsylvania Dept. of Revenue’s CID units, we were told it was OK to have more than one SSN. They weren’t interested in the fact we could prove that he has only reported between 14-21% of his actual income for the last thirty years. They ignored the fact that over those thirty years he had an average annual loss in excess of $20k each year. He never pays taxes.

    This is from an internal IRS memo dated March 27, 1991:

    1. TP loaned his corporation $20,000 in June of 1988. On 06-02-88 there was a $21,182.84 deposit in the TP’s personal checking account. Where did the money come from? Verify! If the money came from the TP’s mother show the money coming out of the mothers account and going into the TP’s account.

    2. How is the TP living. I do not see any checks for personal living expenses which are listed on the attached form 4822.

    3. On some of the corporate invoices the TP lists his address as:

    XXX

    Whose address is this and why is it being used as the TP’s address when he supposedly live with his mother at:

    XXX

    When my brother ran into the author of this memo several months ago she distinctly remembered this case. It was forced closed internally within the IRS. Apparently the IRS does have “get out of jail free cards” for certain people.

    When I see cases in the media of people being falsely accused of "Layering" I think of what has happened in this case. He walks into the bank, deposits $10k in cash. Later in the day he withdraws the same amount and moves it to another location. It's been going on for thirty plus years and the IRS hasn't bothered him since the 1991 incident mentioned above.

    If the IRS had followed through with this investigation they would almost certainly prevented the murder of his second wife because he would have been in jail and they would have never meet.

    In January the Discovery Channel did a documentary on the murder.

    A former U.S. Attorney has been trying to help us with this problem. Two weeks ago we were told that the government will not allow this case to be investigated.

    The system is very broken and it doesn’t look like it will ever be fixed. The corruption is just too widespread.

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: IRS Won't Investigate Reports of Tax Fraud

    While it is unfortunate that your mother allegedly cheated you some 26 years ago, any attempt to recover moeny is going to be subject to the statute of limitations -- it's difficult to see how you could build a viable case after this much time.

    As for tax fraud that allegedly occurred 24 - 27 years ago, the IRS is not going to investigate now because the statute of limitations will have run on either criminal or civil action.

    I can't speak on what it is that the government supposedly will not allow to be investigated, as you have not explained what the subject matter of the investigation would be. Obviously the government can and will investigate murders.

  3. #3
    Join Date
    Oct 2010
    Posts
    12

    Default Re: IRS Won't Investigate Reports of Tax Fraud

    This is present day I'm talking about... it's just that it's been going on unchecked for thirty plus years.

    In January an attorney who won a case against Obama Care last July described the missing money from my fathers parents estate as being large enough that "no one could spent it in a lifetime". The "trust" which is well documented, disappeared from my father's parents estate. It was never probated. There have been three CPA firms who have seen the financial records and they describe it as a very elaborate Ponzi scheme.

    They believe he uses his corporation to launder the proceeds from the "trust" through the company. A former banker who is now with the SBA openly admitted to my brother the her bank was fully aware that my father and his accountant were "cooking the books". But as long as he paid his bill they would not report him for suspicious activity as they are required to by law. The interesting thing here is, how did he qualify for the loan. According to his tax returns he doesn't have enough money to buy soup. About a year ago I accused a banker of allowing the "trust" to be used as collateral in a loan my father had made with them and demanded they file a suspicious activity report with the U.S. Treasury. They filed suit against my father the following day.

    The government has a policy of not investigating family matters. There are now three generations that have been deprived any benefits of the missing trust.

  4. #4
    Join Date
    Oct 2014
    Posts
    8,238

    Default Re: IRS Won't Investigate Reports of Tax Fraud

    What you need to understand is that the IRS only prosecutes a small portion of taxpayers for criminal tax evasion. There are a number of reasons for this, including the fact that the IRS does not have enough staff to pursue all the cases and that it needs very strong evidence to convince a jury that someone is guilty of a tax offense. It has to prove to the jury that the person knew what he was doing was illegal not just that tax had been avoided. Because of the limited staffing at IRS and DOJ to prosecute these cases, they are selective in which ones they take. They go after the strongest cases they can find and the cases the most impact on taxpayer compliance (i.e. cases that will get some media coverage). When I was at the IRS, I referrred cases to the criminal investigation division (CID) that I thought were good evasion cases. They declined to take most of them. Not because the taxpayer wasn’t possibly guilty of evasion, but because of the sort of concerns I just mentioned. Instead, the IRS pursues most cases as civil ones, assessing the additional tax and imposing penalties. The fact that the IRS did not go after him is thus not a sign of corruption. It likely only means that the IRS did not think it strong enough to be interested in pursuing it.

    Also note that because of the privacy restrictions in Internal Revenue Code section 6103, the IRS cannot discuss with you or anyone else in the public anything about your father’s tax returns or any investigation of your father’s taxes. Indeed, the author of that memo should not have talked to your brother about it. She likely violated IRC 6103 by doing so. That memo, by the way, is not proof of any wrongdoing, only proof that the person had questions she wanted to resolve.

    The IRS has a 6 year statute of limitation to pursue criminal tax evasion charges. It cannot go back now 30 years to bring those charges.

    Finally, note that a conviction of tax evasion does not always result in prison time. While the court may impose up to 5 years in prison on each count, rarely do first time offenders get the maximum prison time and many get no prison time at all. There is certainly no gurantee that he would have been in prison at the time he met his second wife even if he had been prosecuted and convicted.

  5. #5
    Join Date
    Oct 2010
    Posts
    12

    Default Re: IRS Won't Investigate Reports of Tax Fraud

    Apparently you didn't understand what I wrote. This is an active ongoing affair involving millions of dollars. Its just been going on for thirty plus years.

    We have the last thirty five years of corporate and personal returns, bank records, loan & mortgage documents, million dollar equipment leases, etc. Their is no lack of proof.

    As I said before, a former U.S. Attorney who wants to help us is being explicitly told this matter "will not" be investigated. This was just two weeks ago, not 30 years ago.

    The murder was a very strange case. The autopsy was performed by a registered nurse not a physician. The body was cremated so there can't be another one. One of the documents recently uncovered states his second wife wanted half of everything, including the missing trust.

  6. #6
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,521

    Default Re: IRS Won't Investigate Reports of Tax Fraud

    Apparently you didn't understand what Tax wrote. Even if it happened yesterday, the IRS gets to decide which cases they will and will not investigate or prosecute - there is no law you can invoke that will force them to investigate or prosecute your situation.

  7. #7
    Join Date
    Jan 2008
    Location
    Toledo, OH
    Posts
    16,307

    Default Re: IRS Won't Investigate Reports of Tax Fraud

    What do you want us to do about it?

  8. #8
    Join Date
    Oct 2010
    Posts
    12

    Default Re: IRS Won't Investigate Reports of Tax Fraud

    I'd like to find a good investigative reporter.

  9. #9
    Join Date
    Apr 2009
    Location
    Somewhere near Canada
    Posts
    35,894

    Default Re: IRS Won't Investigate Reports of Tax Fraud

    Google "good investigative reporter".

  10. #10
    Join Date
    Oct 2010
    Posts
    12

    Default Re: IRS Won't Investigate Reports of Tax Fraud

    Two years ago I had an author whose late father was a Philly cop. She had her life threatened and quit.

    All of you have said what can't be done, not one of you has suggested something than can be done.

    1. Sponsored Links
       

Page 1 of 2 1 2 LastLast

Similar Threads

  1. Protective Services: Is CPS Required to Investigate Every Report
    By shortie in forum Abuse and Neglect
    Replies: 4
    Last Post: 04-23-2013, 08:55 AM
  2. How to Investigate a Lawyer Before Hiring
    By TheArgumentative in forum Legal Practice
    Replies: 2
    Last Post: 07-03-2010, 04:40 AM
  3. Medical Malpractice: State Agency Did Not Investigate
    By xroguy in forum Malpractice Law
    Replies: 2
    Last Post: 05-16-2009, 01:01 PM
  4. Fraud Reports Ignored By The IRS
    By temple in forum Tax Law
    Replies: 1
    Last Post: 01-26-2008, 01:08 PM
  5. Legal Malpractice: Who should investigate?
    By beancounter2 in forum Malpractice Law
    Replies: 3
    Last Post: 09-28-2006, 04:20 PM
 
 
Sponsored Links

Legal Help, Information and Resources