Illegal worker sentenced in plot to defraud IRS of $1.2M

An undocumented worker from the Dominican Republic who schemed with his girlfriend, a former postal carrier and another man to defraud the IRS of more than $1.2 million was sentenced yesterday to 4 1/2 years in federal prison and ordered to make restitution of $97,748.

Authorities said the worker, Angel Collazo, 25, and then-girlfriend Aphleen Quinonez filed 288 false returns between January 2007 and December 2008, but the loss to the government was less than $98,000 because the IRS caught on to the scheme.

Court papers said Collazo, Quinonez and an accomplice, Antonio Rodriguez-Rivera, illegally obtained personal information belonging to residents of Puerto Rico...

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IRS Identity Theft

A recent report by the Treasury Inspector General for Tax Administration (TIGTA) estimated that 1.2 million tax returns filed in 2007 reported wages earned by an individual using another taxpayer's Social Security number.

Individuals filed these returns using their own Individual Taxpayer Identification Numbers (ITIN) but worked using another individuals Social Security number and/or their name. ITINs are used to provide tax identification numbers to resident and nonresident alien individuals who are required to report tax obligations but do not qualify for Social Security numbers. The issuance of an ITIN number does not change their immigration status, entitle them to work or receive Social Security benefits.

Approximately 3 million ITIN tax returns were filed in 2007 and of those filed 40 percent (1.2 million) reported wages earned using another individuals Social Security number (this frequently occurs with illegal immigrants)...

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