IRS to Withhold Low Income Taxpayers OWN Money

January 11, 2017

WASHINGTON – The IRS is delaying tax refunds for more than 40 million low-income families this year as the agency steps up efforts to fight identity theft and fraud.

The delays will affect families claiming the earned income tax credit and the additional child tax credit. These tax breaks are geared to benefit the working poor, and many families claim both.

“For most of these people it’s the biggest check they are going to get all year,” IRS Commissioner John Koskinen said in an interview with The Associated Press. “We are sensitive to that.”

The tax filing season starts Jan. 23. But a new law requires the IRS to delay tax refunds for people claiming these credits until Feb. 15. Processing times will delay most of the refunds until the end of February, Koskinen said.

The delay is designed to give the agency more time to screen the returns for fraud. The IRS estimates that it issued $3.1 billion in fraudulent tax refunds to identity thieves in 2014. The year before, the agency says, it paid out $5.8 billion in fraudulent refunds. Over those two years, the IRS says it blocked nearly $47 billion in fraudulent refunds.

81 Comments - what are your thoughts?

  • GoldenGirl2u says:

    It seems to me that many on this comment section are missing the real problem it is not the regular tax refund. It is people claiming earned tax credit and child tax credit. In past years this has been abused with people using fraudulent means, non-existing child for instance. IRS has done a lot of bad things but, they have to start somewhere. Just saying.

  • TAM44 says:

    Fair tax for everyone and get rid of the IRS AKA Illegal Redistribution Scam

  • dmttbt says:

    I am sure they will blame this on Trump.

  • Askjrsk says:

    Have to pay for Obamas vacations somehow. Then those buisness trips to Paris. Climate change carbon footprint. Gotta fly that plane spend those billions. HILLARY just Six billion unaccounted for and another thirty billion misplaced. Then Obamas campaign for HILLARY fly her around all on taxpayers dime. Sorry little people . We should all Walk everywhere and go on thirty day fast. Get green and Let government spend your money for you. Thanks Hillary thanks OBAMA.

  • carpkiller says:

    Rich or average people do not commit fraud?

    1. Askjrsk says:

      Heck no. Look at HILLARY. Just line item errors.

    2. NM Leon says:

      Rich and average people don’t qualify for the earned income tax credit or the additional child tax credit, which is where the lion’s share of the fraud is.

      1. Janis says:

        Great that they are looking more closely at these payments and catching potential fraudulent claims. Also, just the fact that the fraudsters know that these filings will be scrutinized more, may discourage them from filing fraudulent returns.

  • justinwachin says:

    The IRS needs to do what it can to make sure that the person getting a refund or payout is actually the person who is due to money. The best way to stop identity theft is to eliminate the ability for the criminals to make money off the crime.

    By the way, tax refunds are not gifts from the government. A refund is a return of money a person overpaid. Taxpayers who get a large refund every year needs to adjust their withholding numbers. This will result in larger paychecks throughout the year and little or no money being returned by the government after the year is over.

    1. Askjrsk says:

      Makes too much sense.

    2. Retired says:

      Many get a lot more back than they actually paid in. The IRS should not be a welfare system , just like the ACA should not be part of the IRS..

      1. NM Leon says:

        That’s actually what the earned income tax credit and the additional child tax credit are for.

  • chock says:

    It is about time. The problem is when they get the check it is usually gone in 2-3 weeks. I know this by knowing people who do this. It is not used wisely and they feel entitled to more. Stop the madness. No wonder we are broke.

  • maxx says:

    They started that several years back. It involves actually contacting the taxpayers by mail when there are recent address changes involved. The criminals need to change the addresses to one they own or control so the checks go to them instead of the real residence of the taxpayer. Not a big deal until the media writes incendiary headlines like this one.

    1. Askjrsk says:

      Dead people collecting social security checks. Mail no refunds. Problem fixed

      1. MyRoseHasTHORNS says:

        Most are being direct deposited so that doesn’t help fix it. There needs to be better and more frequent auditing of records so that the deceased ss # is reported and removed from system that processes the payment.
        you’ll still get the occasional freak with a mummified corpse but the occurance of most ss fraud would stop.

        do the same for voter registration… have a cross reference at dmv also- if you change address-notify voter registration so they can both update their records, remove from old address and issue a new card to the new one.
        Storage facilities and PO boxes should never be allowed as physical/permanent address.

        1. NM Leon says:

          You can’t do that. It would be racist…or sexist…or homophobic…or islamophobic…or something.

          Common sense WILL NOT BE TOLERATED!

          1. bobnstuff says:

            Not doing these things is stupid, there is no good reason not to. It’s just good record keeping. Why push for vote ID when just keep track of deaths and addresses would be much better. This is one of thing that’s wrong with government both Democrats and Republican can’t seem to do the easy solutions.

          2. NM Leon says:

            How would you suggest that we make sure that the person voting is the actual person registered to vote and not a fraud?

          3. bobnstuff says:

            Once the voter rolls are cleaned up you can use the signature from the voter registration card just like we do in my polling place. In person voter fraud isn’t a problem that hard to fix without making it hard for votes if we keep good records.

          4. NM Leon says:

            The problem is with mail-in votes. Acorn (as a for instance) was registering homeless people for a couple of bucks, a beer, cigarette, etc. The address given would be one of those private pack and ship places with private boxes. They simply request a mail-in vote (in states where ID isn’t required), fill it in and send it off. Without an ID required for registration and for mail in votes, fraud is invited.

            Here’s just one example.

          5. bobnstuff says:

            Acorn was giving registration cards to anyone and everyone they could. once filled out the law says they must be turned in even if they know they are bogus, it’s the law that you can’t throw away a vote registration card once signed. It’s up to the bureau of elections to decide if the registration is good or not. In Pa. you must request a absentee ballet and you must sign the application. Those signatures are checked just like you had walk into a polling place. When I counted mail in ballets we cross checked them with the vote registry. Once check the envelope they came in were opened and then they were counted.

          6. NM Leon says:

            More than 50 Acorn people were convicted of voter fraud, They were found to be deliberately committing fraud, as in conspiracy. Don’t try to make excuses for them.

            If all you were doing is checking (possibly forged) signatures on mail-in ballots in Pa, then you were guilty of fraud too.

            If you don’t have a Pennsylvania driver’s license number, state ID number, or Social Security number, you must attach a copy of one of the following photo IDs with your ballot application (or alternatively, with your ballot) that shows your name, photo, and has an expiration date that’s current:

            Photo ID issued by the Commonwealth of PA or the U.S. Government (including a U.S. Passport)
            PA driver’s license or non-driver’s license photo ID (IDs are valid for voting purposes 12 months past expiration date)
            PA Department of State Voter ID Card available at a DLC
            Photo ID from an accredited PA public or private institution of higher learning, including colleges, universities, seminaries, community colleges and other two-year colleges
            Photo ID issued by a PA care facility, including long-term care facilities, assisted living residences or personal care homes
            U.S. military ID – active duty and retired military (a military or veteran’s ID must designate an expiration date or designate that the expiration date is indefinite). Military dependents’ ID must contain an expiration date
            Employee photo ID issued by U.S., PA, PA County or PA Municipal government
            **You will have six calendar days following the election to provide valid ID**

          7. ravenwings says:

            Problem is that is not an easy solution. Take note of how many people are NOT purged from voting records yearly. When they did an audit in our county there were more purges than there are residents and still left the living here residents in the system.

        2. bobnstuff says:

          You are very right, without audits to many things get by. What I can’t understand is why death records are not sent to the IRS and the election boards it would only make sense. Isn’t it funny that the funding to the IRS was cut by the congress so they had to cut the number of audits.

        3. ravenwings says:

          I have a solution for Voter fraud. ALL states have the same. A photo voter ID card. NOT drivers license. Just one similar.including the swipe stripe. They could be obtained at DMV, city,state,or federal court house. That the address changes be handled exactly like DMV. That the death of voter be handed just like SS. There is NO ONE that can not obtain one in the coming year. NO CARD NO VOTE. All early voting ceases. And I would go so far as to have the optical cards returned. NO electronic voting. Any absentee ballot be ID’d with the card. That one only one vote per person and only living persons vote.

          1. MyRoseHasTHORNS says:

            I think we’ll eventually need a bio-metric card and a national database to ensure one vote per legal voter but many people run scared at that thought

  • Andy Palmer says:

    I’ve got zero problem with the IRS withholding tax refunds if it helps in identifying theft and fraud.

    1. Roger says:

      I Assume you won’t be affected you freaking idiot! You are also full of crap! How in the hell can someone change an address that is written on a tax return that is in the hands of the IRS? I won’t be affected because I don’t pay taxes but I still think this is stupid and it will solve nothing! ll year, John Koskinen needs to be fired!

      1. bambi69 says:

        My only question to you is “WHY DON’T YOU PAY TAXES”???? Are you in the “boat” with Mr. Trump???

        1. bobnstuff says:

          He might be like Donald Trump and not need to because the system has many tool to get out of paying taxes.

        2. Askjrsk says:

          Obviously you don’t have a clue about buisness. Nor are you aware how many taxes Trump pays. Take a night buisness course and learn. Opens up a world to you.

          1. bobnstuff says:

            I know that Trump has spent a lot of time in court because he didn’t pay his taxes. I know that he got $900 million in tax breaks and I know even though he said he would show his tax returns he still hasn’t. I really don’t care what’s on his taxes but I think when he says he is going to do something he should. Oh and I have taught those night business courses.

        3. Gail Soldato says:

          Retires earning less than a certain amount don’t pay taxes. I only earn (Social Security) a little over 7 thousand a year, so I don’t pay taxes, except on groceries, RX’s, gas, normal things.

      2. Askjrsk says:


    2. Askjrsk says:

      Ok. Fool born every moment.

    3. MyRoseHasTHORNS says:

      It has zero to do with theft and fraud, more to do with other peoples taxes being paid before refunds will be made. You can probably count on the 600 returns going to a one bedroom apt before a low income family gets their hard earned long awaited ‘refund.’

      There needs to be a scan of addresses with multiple returns, most likely need to check/cross reference for how many absentee ballots are sent there also.

      There’s always millions if fraud discovered AFTER, how about a few little computer queries that place a human in charge before 600 plus refunds go to the same address…

      How about a few honest post office people reporting tax and voter fraud or bankers if its all direct deposited to one account?

  • bobnstuff says:

    Didn’t the IRS just cut it’s workforce in the fraud division? Now they have to delay refunds because of fraud. Does this make sense to anyone? One of the things those refund checks is give a boost to the economy. Try buying a used car at refund time. Maybe the IRS should hire more people to audit tax returns, then they might even get finished with Trumps audits so he can show his tax returns.

    1. burns says:

      Sounds like what a tax cheat would say

      1. bobnstuff says:

        What? We need more people to audit tax returns. This is the one job in government that pays for its self so they cut them. It’s those very tax returns that they are holding up that stimulates the economy, it goes right back out in spending.

        1. chock says:

          Never fear we will move the 5000 new hires they used for Obamacare.

          1. bobnstuff says:

            Don’t worry about those people the Republican plan will need them plus more. Republicans just love growing government. You might notice that all talk about the deficit are dying down with Mr. Paul being the only real voice. It’s going to be spend, spend, spend for the next few years.

          2. Retired says:

            You sure do get everything backwards, you got your parties mixed up.

          3. bobnstuff says:

            85% of all government expatiation happens while the Republicans are in office and the highest number of government employment was under Reagan. The Republicans tend to raise spending while cutting taxes. This time will not be any different. Have you not been paying attention Trump is planning to spend on every and anything. He wants 60 new ships. He is going to build a silly wall and spend money like a drunken sailor.

          4. Retired says:

            I think if anyone is a drunken being that would be you with your sea stories that have not happened yet. When was the last time you served on our out dated ships , its like repairing a old car that is worthless. Have you ever worked in the shipyard while in Dry dock ??

          5. bobnstuff says:

            I guess you have been getting the news were you are. Anoung other things we got a new class of sub in 2005 and as of today we have 15 Virginia Class Subs. If you want a list of all the ships and age here you go. As the navy’s of the world we have one of the newest.
            Now look at the Russian Navy

          6. Retired says:

            2005 is 11 years ago , how many have been built since then and under command. How many are in the Russia’s and China’s Dry Dock being built. Tell us how we lost a sub in 68. How many years did you spend on a Sub or a Navy vessel ??

          7. bobnstuff says:

            15 have been built so far and there will be up to 50 more. They are really sweet subs. They are designed to be up dated as new systems come on line. It only takes 117 sailors to run them and they do both Nukes and Conventional warheads. My brother was the Submariner. I just hang out with the guys that build these ships. Right now we have almost twice as many ships under development or construction then the Russians. Even if they build everything they have planned our navy will still be bigger and newer on average. The life of a war ship is at minimum 30 years and with refitting much more.

          8. Retired says:

            The way electronics have advanced a boat can be out dated in 5 years and useless. As they build , old ones are retired. It costs almost as much to refit as build new in many cases . So you never was on or under the water in the service , I get a kick out of you guys that did not serve and know more than the guys who rode the boats.

          9. bobnstuff says:

            The designers agree with you and have changed how they build things, now everything is modular, You can unplug a component and plug in the updated one. As I say I hang with the guy who design these ships. I have been in a Sub and as I say my brother was the Navy guy in the family. One of my other brothers was US Army and did the testing back when the HUMVEE was coming on line. A Cousin of mine sold the M1 Abrams to the army, He came out of West Point. I’m one of the only member of my family that didn’t get to serve but I was 4F, bad knees. You seem to think the only why to get knowledge is to be in the service but a friend of mine knows more then just about anyone who has served but has never been in the service, he works declassifying information for the Air Force. My Aunt also had amazing knowledge have worked for the Pentagon for 35 years.

          10. Retired says:

            I spent 25 with the sub service support and another family member 30+ years under water , he did 37 total . So I am up on what goes on. You forget the Pentagon and Gov. contractors work together to stay in business and then there are the lobbyist that support the elected .It is one big Club.

          11. bobnstuff says:

            Then you know the Virginia class Sub. I have a friend who worked on the design. It’s truly a well designed tool for the modern navy. The Navy has some good stuff coming down the pipeline. In contrast the Russians are so far behind that even with trying to build 100 new ships they still won’t be anywhere clos.

          12. Retired says:

            Where did you ever get the Idea that the Russian and China people are stupid and Can Not be competitive. Both countries collect our Dollars just like Mexico to be able to purchase on the open market. By the way who is sending the people to the Space Station.

          13. bobnstuff says:

            Who said they are stupid, They are smarter then we are in defense spending. they aren’t wasting the money we do. Look at their budgets next to ours, They look pretty smart. How many troops does China have in other countries?

          14. Retired says:

            China wont need troops, they will break us as well as the EU the financial way.

      2. Askjrsk says:

        Bobn. Owned bike rental shops so he knows all about buisness, and managed Dominos pizzas. I have hired managers. They knew how to do their job but did not know how to go about owning their own buisnesses.

        1. bobnstuff says:

          You can even get my history right, you are a pretty sorry person. You don’t think we need more people checking tax returns for fraud. I guess you want people to get away with ripping off the government. I bet you must cheat on your taxes if you even pay them at all.

    2. Roger says:

      Why do you care about Trump’s tax returns? The only tax return anyone should worry about is their own!

      Donald Trump is so right so often about so much, that it is unbelievable! He is an unstoppable genius!

      1. bobnstuff says:

        Atlantic City, proof of his genius. Every other president has shown their returns but the Great and Powerful Trump isn’t like other presidents is he. I even remember him saying he would show them but you really can’t depend on the things he says can you.

        1. Retired says:

          Atlantic City has been dying a slow death for decades now. I think the US can depend more on Trump than what you post.

          1. bobnstuff says:

            Trump spent billion in Atlantic City and lost billions of other people money. Just how do you not make money off of peoples vises. If Atlantic City couldn’t be saved why did Trump dump so much money there? He must have believe it was a good investment.

          2. Retired says:

            You don’t listen very well to what Trump has said in the past, He uses all the tax loop holes just like the Clintons and any other big business . Did you see how much the Clintons paid to have their taxes done, many do not make that much in a year.

          3. bobnstuff says:

            I know what I used to pay for my accountant to do my taxes, I got all the write offs I could also but the thing is Trump said he would show his taxes, those taxes would give a better picture of his business dealings. You see I don’t trust anything the man says. This has nothing to do with the Clinton and everything to do with Trump. On a number of occasions Trump has been less then truthful in his business dealings I’m stuck with this man as my president and I would hope he would show that he respects the people enough to do the right thing.

          4. Retired says:

            Here you go again with BS the tax return will not show what you think . The Clintons did not show where all the money came from and how much came into or from the Foundation. The things you are locking for will never be made public as the legal team works on what is presented.

          5. bobnstuff says:

            Why would the income of a Foundation be on the Clinton’s personal taxes? The foundation is an independent institution. If the Clinton’s had income from the Foundation it would be on their taxes, they didn’t by the way. What you can see is where the Clinton money has come from. By looking at their taxes you can get a picture of there wealth.

          6. Retired says:

            Not true , the tax return did not show how much money they had with the Bank and their investments nor did it show the value of the House in WDC and NY .Blows you out of the water again with wild ideas and hate. Keep up the BS someone may believe you.

          7. bobnstuff says:

            It shows income, over a number of years you can see how much is coming in. The only why you get money to put in the bank or to invest is through income. This can tell a lot. Everything else can be checked and in Trumps case has been. He is not worth near what he says he is.

          8. Retired says:

            Starting to change your tune now. What was made public for viewing on the Clintons return was limited by the law firm doing the taxes . Personely I could care less how much Trump makes or has as long as WDC gets a face lift. I say this either support the man or shut up until he does something as drastic as Obama and his fiends like Sharpton did. And that has to start with the media.

          9. bobnstuff says:

            He can’t touch the media, first amendment. The third estate. I have no problems with change in Washington but unless you through Congress out nothing will happen. Trump so far has put together the worst cabinet I have ever seen and I have little faith in their being able to do their jobs. I’m sure there will be a face lift but I fear we will be left with a large scare.

          10. Retired says:

            Oh he can touch the media by limiting who attends his news conference . just because most are not WDC Insiders you have a problem ?? There can not be as bad a scar on the WH like Obama Left.

      2. Askjrsk says:

        Absolutely. I had executives with Microsoft that know how to be corporate people, but told me they could not fathom how to be self employed and own their own businesses. Proves not everyone understands the dynamics.

    3. MyRoseHasTHORNS says:

      Most returns are scanned/processed by computer. Audits typically happen 3 years after filing.
      I personally don’t care what is in Trump’s taxes

      But am extremely curious as to the convoluted practices of the Clinton Foundation which would probably be better investigated by DOJ for RICO than audited by IRS.

      1. bobnstuff says:

        The Clinton foundation has been audited every year and their records are public. If you are interested you can find everything on line.
        Do you think the Clinton’s do anything that isn’t gone over with a fine tooth comb by the republicans and the media.

        1. Retired says:

          You sure are funny with your BS.

          1. bobnstuff says:

            Well since unlike our next president Clinton isn’t trying to hide things you can get almost anything you want on them form taxes to the records from their foundation. You do know that the Clinton Foundation is respected by a lot of very high power and very rich folks like Bill Gates.

          2. Retired says:

            The foundation – PP and Wounded worrier are all big businesses avoiding federal taxes and return very little to the needed.

          3. bobnstuff says:

            PP is actualy a fairly well run non profit. The money they get to provide services go to doing just that. Wounded Worriers is like Trumps charity, it give very little to nothing to people.

          4. Retired says:

            Yup they sure are , we have a office in town closed and dark more than it is open and the rent for that building is not cheap. So that blows your BS. PP is a big corporation with high overhead ,just look at what they spend for the annual get together Salaries and travel. It is more than what goes to health care

    4. Retired says:

      You are out in left field, the Computer should have eliminated many IRS jobs years ago. The IRS has made filing so complicated for job securety.

      1. bobnstuff says:

        You are talking about the government and computers. These ares the people who can’t get the military’s computers to talk to the VA’s computer after spend million on trying. These people are still using floppy disks. The Navy still runs on XP. Yes computers could improve the system but our government doesn’t do computers well.

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