By falsely claiming he had withheld $1 million in taxes, a Tampa man was able to fraudulently recieve a check for $980 million from the IRS.
This article from CNBC explains that by grossly over reporting on his taxes, Ramon Christopher Blanchett was able to receive nearly a million dollars in tax refunds. A former IRS commissioner commented that it could be the result of a system failure or staffing issue.
Emma Dahl Comments
This reflects a fundamental issue in our taxation system. It has become so convoluted and complex that people can receive huge sums of money from the government, without the government realizing they shouldn’t be sending it in the first place. Although this case was caught, tax evasion and underreporting are actually quite common and somewhat easy to get away with at lower amounts.
Tony Siebers Comments
Today’s Internal Revenue Code (or Tax Code) is a collection of more than 77,000 pages of regulations and court interpretations of how they should be followed. According to GoBankingRates.com less than 9% of Americans use the IRS Forms and file their taxes without help. I’m not saying this guy was confused, but I am do find the system overly complex which is only highlighted by this instance of potential fraud.