Man Charged on "Original Issue Discount" Scam

[Number Six]

http://www.justice.gov/usao/ct/Press201 ... 927-2.html

"The indictment alleges that GREEN falsely claimed to have received $920,063 in taxable interest income, and to have $929,702 of federal income tax withholdings for the 2008 tax year. Based on this false information, GREEN claimed a refund from the IRS in the amount of $616,434. In March 2009, the IRS wired $616,434 to three bank accounts designated by GREEN. When the IRS tried to collect the erroneously issued refund, GREEN undertook a course of conduct to inhibit the IRS’s efforts to recover the money, including sending frivolous correspondence to the IRS, hiding real property in the name of a nominee entity to impede the IRS’s collection efforts, and falsely complaining that the IRS had commenced unauthorized collection and enforcement actions against him."

[Kestrel]

The only surprise here is that the IRS computer didn't raise a bullshit flag before issuing the refund in the first place.

I do hope they've added a line of programming since then to set such returns aside for additional review.

[David Merrill]

I always enjoyed stumping the OID gurus with the Instructions. There are five or six applications for the form and I would post them inquiring which one the OID application fell in?

[webhick]

The only surprise here is that the IRS computer didn't raise a bullshit flag before issuing the refund in the first place.

No, more like the only surprise here is that they caught it at all. I think the IRS is still using a room full of abaci for their server. I hear the noise is deafening. Or I would hear it, had the noise not deafened me.

I do hope they've added a line of programming since then to set such returns aside for additional review.

More like another 18-footer. And a trained monkey.

[Arthur Rubin]

The only surprise here is that the IRS computer didn't raise a bullshit flag before issuing the refund in the first place.

No, more like the only surprise here is that they caught it at all. I think the IRS is still using a room full of abaci for their server. I hear the noise is deafening. Or I would hear it, had the noise not deafened me.

I thought that they'd upgraded to a Babbage Engine.

[notorial dissent]

More like another 18-footer. And a trained monkey.

Or maybe a better trained one????
Trained monkeys are expensive you know, so its better to hire them untrained and let them work their way up to IT management.

[grixit]

The problem with using monkeys is they're always writing Shakespeare when they're supposed to be working

[NYGman]

The OID position is always a stupid one, OID Is simply imputed income created by a debt obligation issued at a discount on the face value, nothing more. No hidden account, and not somehting an individual should ever complete. These are issued by Banks, Brokers, and Custodians, to allow the taxpayer to know how much OID Interest to report on their tax return, as OID is not payable in cash. To say the 1099OID has other uses is crazy. I just can't believe th magnitude of this one... Blows the mind.