Support CenterCommon Characteristics of Possible Fraud:
1. Withholding is approximately 25% of the income.
Example:
Box 1 is 32,000.00
Box 2 is 8,000.00
2. W-2s look legitimate, but there are typos
3. All are typed -- may even look computer-generated.
4. Filing status is usually Single - but may be HH.
5. Employer names and EINs are always legitimate.
6. These employer names and EINs have been used fraudulently
Dallas County Hospital District
AAA of TX LLC
Dallas Market Center
Pacific West Management
LTD Financial
Stein Mart (Jacksonville, FL)
7. Taxpayer address on W-2 does not match the address on Driver's License or ID
8. The taxpayer will offer a phone number to verify employment
What to do:
Consider any W-2 on which the withhold seems excessively high to be suspicious.
Be sure to record the taxpayer's address from the Driver's license. If a copy machine is available, make a copy of the Driver's License and Social Security Card.
Do not alert the taxpayer that you are suspicious. Complete the return in the normal manner.
Write down the phone number for employer verification that the customer gives you. You may call and verify while the client is there.
Do not put the return in for processing. Give it to your office manager or owner.