DO YOU AGREE OR DISAGREE FROM THIS RESPOND. WHY? 2) Give an example of an IRS fr
ID: 327178 • Letter: D
Question
DO YOU AGREE OR DISAGREE FROM THIS RESPOND. WHY? 2) Give an example of an IRS fraud of which you have heard? Identity theft is the most common IRS fraud I heard of. If some one knows our login or SSN details they can file our taxes ahead and get the tax returns accordingly. I heard from my colleagues on fake IRS spam phone calls saying that they owe taxes and asking to do the payments over the phone as well. 4) Should the IRS focus more on big business or the people filing tax returns and why? Yes as per my thoughts IRS should focus on Big companies and business tax return:s than individual. Most of the Individual tax returns are straight forward. Where as business tax filing is a complicated case. where they itemize business expenses and carry forward business losses. In this case there is a chance of fraud. Therefore IRS should focus on Business filings.Explanation / Answer
Explanation to Ans 2:
I agree that identity fraud is the most common fraud, it figures in the “dirty dozen” list of scams for 2017. This list consists of various schemes taxpayers would encounter throughout the financial year. They normally peak around the tax filing season. Identity fraud (IR-2017-22) taxpayers need to watch out for identity theft around this time.
Explanation to Ans 4:
I don’t agree with the statement and I think that the IRS should focus on both Big business and high return individuals people with income more than $10 million (High wealth individual), also individuals who report zero tax. The chances of a big business underreporting tax are high compared to small business houses who normally file accurate tax returns as per statistics 94% of underreporting of tax is from big companies and 6% from small companies, Individual tax frauds comprise 75% of the total tax frauds, mostly because of use of wrong tax code and negligence in reporting.
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