IRS looking for tax fraud cases
Criminals plan for tax season, just as their victims do. Gregory Floyd is assistant special agent in charge of the IRS Criminal Investigations Division office in Philadelphia, which does the nitty-gritty work of investigating tax-related crimes.
Criminals plan for tax season, just as their victims do.
Gregory Floyd is assistant special agent in charge of the IRS Criminal Investigations Division office in Philadelphia, which does the nitty-gritty work of investigating tax-related crimes.
"Tax fraud due to identity theft is one of our biggest concerns," Floyd said.
IRS Criminal Investigations also has worked with other federal agencies on cases such as the indictment of Chaka "Chip" Fattah Jr. and the upcoming trial of Nova Bank executive Barry Bekkedam.
The Bekkedam case involves alleged fraud using Troubled Asset Relief Program bailout money, according to IRS spokesman Ed Manning. The government's criminal complaint alleges that Bekkedam and others used Nova's money to give the appearance of outside investment by making loans that came right back to the bank.
Floyd and his staff do battle on the front lines against tax-refund fraud.
Tax thieves often file early to beat individuals to their refunds, and the IRS is trying to catch these criminals on the front end, even using intelligence-gathering at street level.
"Identity thieves often set up bank accounts using consumers' personal information, then file early. Usually, these criminals are linked to a check casher and come in with a stack of Treasury checks," Floyd said. "That's a tipoff for us."
Tax preparers can be unscrupulous, as well, so the IRS has put together a searchable, sortable list of verified preparers, available at www.irs.gov/chooseataxpro.
"If a tax preparer is offering you a larger-than-normal refund, that's a red flag. Or if their fee is based on the size of your refund, that's another red flag. The fee should be a flat fee," Floyd said.
Final tip: Don't use a tax preparer that asks you to sign an incomplete or blank tax form.
A Cobbs Creek native, Floyd graduated from Overbrook High School, then went to St. Joseph's University on a track scholarship. He still holds the college's record in the high hurdles.
An accounting major, Floyd started at the IRS as a revenue agent before joining the criminal division in 1993. As a special agent, he worked a variety of cases, including narcotics investigations and money laundering.
The Criminal Investigations Division analyzed the financials of Fattah, who is appealing his conviction last year on bank and tax-fraud charges. Floyd's team, in particular agent Mickey Scheffer, worked on the high-profile case.
"Once an individual files a tax return, we send out agents to close all the loops. We research and analyze the income and statements behind that," Floyd added. "The numbers don't lie. Once they're on the return, they're there."
Floyd encourages the public to report suspected tax fraud and identity theft, and not to share personal information such as Social Security numbers with anyone, especially over the phone.
Take the credit
The City of Philadelphia's Department of Revenue estimates that 40,000 residents who are eligible don't apply for the earned income tax credit, leaving nearly $100 million in tax credits unclaimed.
To make city residents aware, Revenue Commissioner Frank Breslin is promoting a campaign around the EITC, titled "You Earned It."
The average federal EITC refund amount in Philadelphia is more than $2,400, he said.
More information and a list of locations offering tax-preparation services through the city's program are available, on the chart with this story or at the website set up by Breslin's office, www.YouEarnedItPhilly.com.
In December, Congress made permanent the extension of the Earned Income Tax Credit, widely regarded as one of the nation's most powerful antipoverty programs because it can return up to $6,269 per qualifying family.
The IRS estimates that one in five taxpayers does not claim the EITC because of being unaware of the credit.
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Where to Get Free Tax Help
The Philadelphia Department of Revenue estimates 40,000 city residents who are eligible for the Earned Income Tax Credit (EITC) don't apply for it, leaving nearly $100 million in tax credits unclaimed. The following is a partial list of EITC tax-prep locations around the area, which offer assistance on a walk-in basis only, unless otherwise noted.
Center City
CWF Center City
1207 Chestnut St., Fourth floor
District 1199C Training Fund
100 S. Broad St.
SEPTA Suburban Station**
16th Street and JFK Blvd.
Women in Transition (WIT)*
21 S. 12th St., Sixth floor
Germantown
Juvenile Justice Center*
100 W. Coulter St.
Promise Academy
MLK High School, 6100 Stenton Ave.
Resources for Human Development
4700 Wissahickon Ave., Suite 118
North Philadelphia
HACE Business & Visitor Center
708-10 N. Fifth St.
HACE Main Office
167 W. Allegheny Ave.
Municipal Services Center
2741 N. 22nd St.
North Central Financial Center
1415 N. Broad St., Suite 222
The York House*
5325 Old York Rd.
Northeast Philadelphia
Northeast Super Site
7300 Bustleton Ave.
Temple University Sheller Center for Social Justice*
1755 N. 13th Street, Second floor
CEIBA*
147 W. Susquehanna Ave.
South Philadelphia
Dixon House
1920 S. 20th St.
United Communities
2029 S. Eighth St.
Southwest Philadelphia
Ebeneezer Church
5649 Christian St.
Southwest CDC
6328 Paschall Ave.
West Philadelphia
Achievability
59 N. 60th St.
Drexel University Dornsife Center
3509 Spring Garden St.
Free Library of Philadelphia Walnut West Branch*
201 S. 40th St.
Mount Pisgah A.M.E. Church
428 N. 41st St.
WPEZ Tax Site
1575 N. 52nd St., #701
The Enterprise Center*
4548 Market St.
Montgomery County
The ARC Alliance
3075 Ridge Pike, Eagleville
* Appointment only **Appointment and drop-off