Tax Roundup, 7/3/2012: A solution to ID-theft refund fraud? Plus lots of Obamacare, and Zombies!

July 3rd, 2012 by Joe Kristan

And yet our leaders don’t lift a finger to stop it. Olson: Death master file data encourages tax fraud (Fiercegovernmentit.com):

In making public the death master file, the Social Security Administration is actually facilitating tax-related identity theft, said Nina Olson, taxpayer advocate for the Internal Revenue Service. Olson testified June 28 before the House Judiciary subcommittee on crime, terrorism and homeland security.

There are some legal questions as to whether or not SSA can restrict access to the DMF, which includes recently-deceased individuals’ full names, social security numbers, dates of birth, dates of death, and the states and zip codes of the last address on record, said Olson.  

“For that reason, I strongly support legislation to restrict public access to the DMF. However, I believe the SSA has at least a reasonable basis for seeking to limit public access to the DMF and if legislation is not enacted, I encourage SSA to act on its own,” she said.

This has been common knowledge among practitioners for years.  Many parents have had the heartbreak of child death compounded by identity theives filing refunds for their dead kid off the master file, leading to long paperwork duels with the IRS.  Yet IRS Commissioner Shulman has been too busy creating a government-controlled class of tax preparers to care.

So maybe citizens are taking matters into their own hands?  “Signs of tax refund fraud found in home of man targeted in shooting” (Tampa Bay Times)  More from TBO.com.

Taxpayer Advocate Service Warns Congress About Late Tax Changes (Tax Policy Blog):

With wholesale changes to American tax law scheduled for January, many tax analysts are rightly concerned about the serious complications that will arise, both for individuals and the IRS. Tax Analysts published an article (subscription required) on June 28th covering a report by the Taxpayer Advocate Service, which argued that Congress’s “continual enactment” of tax law in late 2011 delayed millions of tax returns, a disturbing trend that threatens to add a significant compliance burden to the public at large. 

Just one more reason to require congresscritters to prepare their own returns in a live, archived webcast with a rolling comment bar to enable us to provide running commentary and, um, encouragement.  Update, 7/11/12: full article available here.

What the tax changes in Obamacare mean for entrepreneurs in 2013.  My latest post at IowaBiz.com, the Des Moines Business Record blog for entrepreneurs.

TaxGrrrl: Professionals Offer Thoughts, Perspective on Supreme Court Health Care Ruling

State 29: Obamacare Screws Families Who Use Health Flex Spending Accounts In 2013

Anthony Nitti: The Clock Is Ticking on the Investment Income Surtax. What Should You Do?

William Perez, Tax Impacts of the Supreme Court’s Health Care Decision

Martin Sullivan: The Economic Case for Unlocking Foreign Profits (Tax.com)

Peter Reilly, prepared for anything: Zombies And The Estate Tax – Law Professor Questions How Dead Are The Undead ?

Today in History: Union troops at Gettysburg broke Pickett’s Charge 149 years ago today, marking the “high water mark” of Vampire power in the U.S.

Because boredom isn’t frightening?  Yes Auditors, It Is Possible to Explain Your Job Without Scaring People Away (Going Concern)

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