How IRS Protects ID Thieves

Millions of Americans have fallen victim to ID theft during tax season, when fraudsters file false returns in an attempt to steal other people’s refunds.
Victims face delays in getting their real refunds, and paperwork nightmares that can drag on for months. In an attempt to survey the damage, some have asked the IRS for a copy of the fake returns, but Bloomberg reports that the agency has denied such requests, despite consumer-protection regulations intended to help victims in these situations.
The rules protecting consumers apparently conflict with tax laws that prevent its agents from sharing bogus returns and impose a penalty of up to five years in prison and a $250,000 fine for IRS workers who violate that law. “Employees face the specter of felony charges for giving out private details — including, possibly, those of the identity thieves — to those who aren’t authorized,” according to Bloomberg.
Related: 3 Costly and Common Tax Scams to Avoid
Tax refund fraud has ballooned in recent years. While electronic filing has made the tedious process of filing taxes more bearable for consumers, it has also made it easier for criminals to scam the system by filing phony returns using stolen Social Security numbers. Scammers bilked the IRS out of $5.8 billion in fraudulent tax refunds in 2013, a number auditors expected would climb much higher in the most recent tax season. (Numbers haven’t yet been released for 2014 returns).
Electronic fraud became such a problem this year that TurboTax briefly suspended state returns for customers in February to deal with ID theft issues.
If the IRS is of limited help to victims, that’s all the more reason to make sure your information is protected. You can find some tips to reduce your risk of ID theft here.
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Why Craft Brewers Are Crying in Their Beer

It may be small beer compared to the problems faced by unemployed federal workers and the growing cost for the overall economy, but the ongoing government shutdown is putting a serious crimp in the craft brewing industry. Small-batch brewers tend to produce new products on a regular basis, The Wall Street Journal’s Ruth Simon says, but each new formulation and product label needs to be approved by the Treasury Department’s Alcohol and Tobacco Tax and Trade Bureau, which is currently closed. So it looks like you’ll have to wait a while to try the new version of Hemperor HPA from Colorado’s New Belgium Brewing, a hoppy brew that will include hemp seeds once the shutdown is over.
Number of the Day: $30 Billion

The amount spent on medical marketing reached $30 billion in 2016, up from $18 billion in 1997, according to a new analysis published in the Journal of the American Medical Association and highlighted by the Associated Press. The number of advertisements for prescription drugs appearing on television, newspapers, websites and elsewhere totaled 5 million in one year, accounting for $6 billion in marketing spending. Direct-to-consumer marketing grew the fastest, rising from $2 billion, or 12 percent of total marketing, to nearly $10 billion, or a third of spending. “Marketing drives more treatments, more testing” that patients don’t always need, Dr. Steven Woloshin, a Dartmouth College health policy expert and co-author of the study, told the AP.
70% of Registered Voters Want a Compromise to End the Shutdown
An overwhelming majority of registered voters say they want the president and Congress to “compromise to avoid prolonging the government shutdown” in a new The Hill-HarrisX poll. Seven in ten respondents said they preferred the parties reach some sort of deal to end the standoff, while 30 percent said it was more important to stick to principles, even if it means keeping parts of the government shutdown. Voters who “strongly approve” of Trump (a slim 21 percent of respondents) favored him sticking to his principles over the wall by a narrow 54 percent-46 percent margin. Voters who “somewhat approve” of the president favored a compromise solution by a 70-30 margin. Among Republicans overall, 61 percent said they wanted a compromise.
The survey of 1,000 registered voters was conducted January 5 and 6 and has a margin of error of 3.1 percentage points.
Share Buybacks Soar to Record $1 Trillion

Although there may be plenty of things in the GOP tax bill to complain about, critics can’t say it didn’t work – at least as far as stock buybacks go. TrimTabs Investment Research said Monday that U.S. companies have now announced $1 trillion in share buybacks in 2018, surpassing the record of $781 billion set in 2015. "It's no coincidence," said TrimTabs' David Santschi. "A lot of the buybacks are because of the tax law. Companies have more cash to pump up the stock price."
Chart of the Day: Deficits Rising

Budget deficits normally rise during recessions and fall when the economy is growing, but that’s not the case today. Deficits are rising sharply despite robust economic growth, increasing from $666 billion in 2017 to an estimated $970 billion in 2019, with $1 trillion annual deficits expected for years after that.
As the deficit hawks at the Committee for a Responsible Federal Budget point out in a blog post Thursday, “the deficit has never been this high when the economy was this strong … And never in modern U.S. history have deficits been so high outside of a war or recession (or their aftermath).” The chart above shows just how unusual the current deficit path is when measured as a percentage of GDP.