Sunday, February 07, 2010

Drug raid uncovers massive tax fraud scheme

It is believed Bodden was filing income tax returns from her mobile home, primarily tax returns for illegal immigrants, and claiming the first-time home buyers tax credit of $8,000.

If someone is using a Social Security number and paid taxes through an employer, income tax returns can be filed.

“This was a very organized and elaborate tax fraud scheme,” Entrekin said. Records to confirm about $200,000 in tax refunds were discovered.

It is suspected that many more tax returns have been filed electronically and that information can be obtained through a forensic investigation of the computers.

It appears Bodden was profiting by filing the returns and charging 25 percent of the tax refund. The refunds were deposited into a bank account over which she had control.

Agents found one instance in which a person’s refund was about $12,000 and she made $2,700.

District Attorney Jimmie Harp gave an example of one tax return in which a person believed to be in the U.S. illegally made $6,000 last year and got a $13,000 refund using the tax credit.

Etowah County Drug Enforcement Unit Commander Rob Savage said investigators have not found any homes listed as purchased on the returns that even exist.