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FOR IMMEDIATE RELEASE
July 28, 2006
Contact: Diane Pratt-Heavner
(202) 226-7797

 

Reps. Davis, Keller and Feeney Celebrate Prosecution of Prison Tax Fraud Ring

Members called for federal investigation of nationwide inmate tax fraud problem.

 

WASHINGTON, DC – Today, Florida Congressmen Jim Davis, Ric Keller and Tom Feeney joined in celebrating a Tampa federal grand jury’s indictment of seven individuals involved in a prison tax fraud scam.  Last year, Davis, Keller and Feeney’s work helped launch investigations by Congress and the Administration into the growing national problem of inmate tax fraud.

 

In Florida, in 2005, approximately 22,000 returns were filed using a prisoner's social security number.  The IRS investigated this group and found that about 1,000 of the returns are fraudulent to the tune of about $4.6 million.  In some cases, prisoners received refunds of up to $5,000 from the IRS for wages they never earned.  In the case closed yesterday, a former psychiatric counselor at a Florida prison, a former corrections officer and several inmates were involved in defrauding the American taxpayer by nearly $1 million.

 

In 2005, Congressmen Davis, Keller and Feeney called for and testified at a House Ways and Means Subcommittee on Oversight hearing about the prisoner tax fraud problem.  Soon after, the members joined Senator Bill Nelson calling on the Department of Treasury’s Inspector General to investigate the problem and identify ways lawmakers could ensure that criminals are not continuing their illegal activities from behind bars. 

 

The IG’s report led Reps. Davis, Keller and Feeney to join Rep. Jim Ramstad, Chairman of Subcommittee on Oversight, in introducing H.R. 4549, The Prison Inmate Tax Fraud Reduction Act.  The bill gives the IRS and Federal Bureau of Prisons the tools they need to identify inmates attempting to file fraudulent tax returns.

 

 “When millions of law-abiding Americans work hard to pay their own taxes, we cannot allow criminals to game the system,” said Congressman Davis.  “For far too long, criminals were getting away with highway robbery from behind bars.  I am glad that my work with Congressmen Keller and Feeney is helping to put a stop to that activity, and that these cases are finally getting prosecuted.  Today, we should congratulate the federal prosecutors and the grand jury for their hard work on this case.”

 

“After personally meeting with IRS Commissioner Everson, and working with his Criminal Investigation staff, I learned that my suspicions were correct,” stated Rep Keller. “The problem is huge, and it’s not limited to Florida. In 2004 there were over 18,000 false tax returns filed by prisoners, which could have cost taxpayers over $53 million if undetected by the IRS.  Fortunately, we’re now starting to see some action to crack down on this problem.”

 

“Thursday's indictment of inmates in Tampa who received nearly $1 million in illegal tax returns shows the crackdown is finally in place,” said Rep. Feeney.  “There is an epidemic of tax fraud that plagues our nation and prison system.  The American people should not have to worry about criminals continuing to commit crimes while they are behind bars.”

 

            “I am pleased to see positive results in the form of crackdowns following the Congressional investigation spearheaded by myself, Ric Keller, and Jim Davis,” said Feeney.

 

Rep. Davis Testifies on Prisoner Tax Scams, June 29, 2005

 

Rep. Davis Calls for Investigation into Prison Tax Fraud, April 14, 2005

   


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