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Subject:  Re: Tax story of the day Date:  6/12/2012  12:21 PM
Author:  BruceCM Number:  116251 of 128041

There are two things that strike me about this (I watched the local news extended story):

1. This is an unsophisticated tax filer who did this with almost no forethought or deception planning. From the interview with her, she had trouble putting together complete sentences, as she was, with a straight face, claiming that she felt this was owed to her (I suppose this is a consequence of watching too much Obama speaching). So if she can do this for millions and get by with it, how many smarter filers are getting by on $10,000 false refund claims?

2. Do banks (or other asset holders) ever look at the size of the debit cards they are backing? Now, I know the more the better for them, as they get a cut of every purchase....but if it is fraudulant, they'll likely have to give up their margins plus the administrative costs. But I would reason that most of the high value debit cards are a few thousand dollars....but $1.8MM?? Whew!!

And had she not reported the remaining $1.6MM on the debit card as stolen, would the taxpayers have just lost this balance? Had she not lost the debit card, would she have consumed the entire amount with no one ever knowing?

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