Choosing a Preparer is Important

A Florida prison psychologist was sentenced to five years in prison for his role in an inmate personal income tax fraud scheme. In the alleged scheme, the psychologist accessed the Florida Department of Corrections database and obtained the names and other identifying information about other inmates in other prisons. The psychologist then gave that information to the inmates in his own prison and then those prisoners allegedly used that information to prepare and file false federal income tax returns claiming refunds. The total take: $902,000.00.

The IRS, in rapid response, announced a new cooperative effort to combat prison-based tax fraud:

“The prosecution of income tax refund crimes committed by prison inmates is important. …Participants in prison refund scams commit crimes against the nation’s tax systems.”

I am usually a proponent of  expansion of individual rights, but maybe prisoner’s tax returns get codes and any refund claims are picked up for at least a preliminary review at the Service Center where they are processed?

John M. Hanamirian