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What Is Identity Theft Tax Fraud?A growing trend among fraudsters is that of the identity theft tax fraud. The scam itself is simple, but rather ingenious. Illegal immigrants will purchase some fake identity details. As you now know if you have read many of the pages on this site, they don't need much information. They will then register for work under the fake identity as casual labor. This will allow them to contract and therefore pay taxes in one lump at tax time rather than monthly or weekly from their wages. As you might be thinking, this works best for seasonal workers where it is expected that they will be moving on in a few months time. When tax time comes, no taxes will be paid in the assumed name by the workers, leaving the government to chase an innocent person. The workers benefit is that they can find work and work tax free. This might seem bad enough, but the real problem comes when these workers quite generously pass their details around to friends and family who also are looking for seasonal work. The poor victim will find that the government is now chasing for unpaid taxes for a number of workers. Obviously, this makes it a little easier for the victim to prove that they have been the hit by identity theft tax fraud, since most people are unable to hold down twenty full time jobs at a time. The victim therefore, is the general public - the public purse which is now short by the taxes due from a number of workers. In the meantime though, the person whose name was used by all these workers faces a tough task to convince the IRS or whomever that they are innocent and do not owe thousands in unpaid taxes. To learn about other ID scams:
Identity Theft Definition
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