Taxation & Estate Planning

Prisoner Gets Tax Rebates Illegally

By Darrin Mish

Fancy this â?? an inmate in a federal prison is accused of identity theft of fellow inmates' names and social security numbers to obtain thousands of dollars of tax rebates from behind prison walls. Michael W. Joseph III is presently imprisoned at the Apalachee Correctional Institute, Florida and is known among fellow inmates as 'H&R Block' because of his competence in filing tax returns. At the same time, Joseph was also proficient as a jailhouse lawyer who would file motions on behalf of fellow inmates. Marrying these two tasks was an easy task for someone like Joseph.

All he had to do was get the inmates' social security numbers and other personal details when he filed motions in court for them. Then he would make tax return filings under their names with or without their knowledge. While several inmates knew about Joseph's fraudulent dealings, others assumed that their filings were above board while still others did not even know their information was being used. Those who were privy to what Joseph was doing with their tax returns agreed to split the tax rebate money they would receive. These inmates would sign a form to indicate their willingness to have their rebates deposited into an account opened by Joseph's mother in Tampa. The portion of the money due to the inmates would be electronically transferred into their canteen funds at the prison by the mother.

As such, Joseph's mother, Deloris Werner being charged with being a principal in this case of fraud. She is presently giving her cooperation to Florida state authorities' investigations, according to Assistant State Attorney, Greg Wilson. So far, the authorities have investigated 3 out of a possible 15 to 20 fraudulent tax returns filed by Joseph between August 2008 and September 2009. In these 3 cases, the inmates concerned were not aware of their personal particulars stolen by Joseph.

During the course of investigations, Deloris Werner also led federal agents to the home of her boyfriend where they found $15,000 in a bottle buried in the backyard. This money appears to have been kept for contingencies in case the bank accounts were seized or frozen and was likely the gains from the early days of the fraud.

Attorney Wilson said that this whole scheme would have gone unnoticed but for the alertness of staff at Apalachee Correctional Institute who discovered more than one tax filing done under one inmate's name. They promptly alerted the authorities who launched their investigations.

If convicted, Joseph could face 8 to 90 years' imprisonment. Perhaps he thinks he is already behind bars, so it makes no difference.

Darrin T. Mish is a veteran, nationally recognized tax attorney who has focused on providing IRS help to taxpayers for over a decade. He regularly travels the country training other attorneys, CPAs and enrolled agents on how to handle their toughest cases with the IRS. He is highly ranked among the top attorneys in the country, with an AV rating from Martindale-Hubbell and a perfect 10 on Avvo.com. Martindale-Hubbell has also honored him with a listing in their Bar Register of Preeminent Lawyers. He is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. With clients on every continent but Antarctica, he has what it takes to solve your IRS problems no matter where you live in the world. If you would like more information about his practice and how he can help you, please call his office at (813) 229-7100 or toll free at 1-888-GET-MISH.

Prisoner Gets Tax Rebates Illegally is a post from: IRS Tax Problem Solver Blog - IRS Help

Full post as published by IRS Problem Solver Blog on January 12, 2010 (boomark / email).