1099-OID fraud

Type of tax fraud in the United States 1099 OID fraud is a common scam used to obtain money from the U.S. Internal Revenue Service (IRS) by filing false tax refund claims.See generally "Common Fraud Schemes," Federal Bureau of Investigation, U.S. Dep't of Justice, at Form 1099-OID is intended to be submitted to the IRS by the holder of debt instruments (such as bonds, notes, or certificates) which were discounted at purchase to report the taxable difference between the instruments' actual value and the discounted purchase price.https://www.irs.gov/pub/irs-pdf/f1099oid.pdf Form 1099-OID irs.gov Internal Revenue Service 21 October 2016https://www.irs.gov/publications/p1212/ar02.html Publication 1212 - Main Content irs.gov Internal Revenue Service 21 October 2016 In 1099-OID fraud, the filer of a tax return fills out the form themselves with a false withholding amount and submits it to the IRS in an attempt to reduce tax liability.https://www.forbes.com/sites/peterjreilly/2014/08/18/the-oid-fraud-and-criminal-gullibility/#67025a391ff1 The OID Fraud And Criminal Gullibility Peter J. Reilly 18 August 2016 Forbes.com 21 October 2016 Promoters of the fraud allege that the withheld amount exists in a secret bank account,IRS Releases the Dirty Dozen Tax Scams for 2012 https://www.irs.gov/newsroom/irs-releases-the-dirty-dozen-tax-scams-for-2012 US Internal Revenue Service - Feb. 16, 2012 2012-06-27 a claim that originates from the redemption movement. The IRS initially overlooked the fraud because it lacked time to verify withholding data; however it has since taken notice and responded with both criminal prosecutions and public awareness campaigns. In one egregious case, Ronald L. Brekke of Orange County, California, was convicted on March 17, 2012, in federal court in Seattle, Washington, of conspiracy and wire fraud in which 1,000 people, most of them Canadian, filed fraudulent United States tax refund claims with the IRS. The scam totaled $763 million, but the IRS paid out only $14 million. Mr. Brekke received $400,000 from his clients.Andrea Chang Tiffany Hsu Orange County man convicted of tax fraud March 17, 2012 Los Angeles Times http://www.latimes.com/business/la-fi-tax-fraud-20120317,0,3391597.story https://web.archive.org/web/20120419011858/http://www.latimes.com/business/la-fi-tax-fraud-20120317%2C0%2C3391597.story April 19, 2012 dead http://www.cbc.ca/news/world/american-convicted-in-cross-border-scam-1.1245588 American convicted in cross-border scam Associated Press March 17, 2012 CBC News March 14, 2017 References Category:Tax evasion Category:Personal taxes in the United States Category:Fraud in the United States Category:Confidence tricks