Prison Tax Fraud Increasing

By: Brian Johnson Email
By: Brian Johnson Email

It's a crime that brings new meaning to the phrase "1040-EZ"-- prisoners already serving time for other crimes, stealing your hard earned tax returns from inside the slammer.

Not only that, it's getting worse, with inmates across the country-- including hundreds in Mid-Michigan-- trying to steal billions of dollars each year.

"I actually had it so good inside the prison system that there really was no need to get out," said Dwayne Selvey, a former tax fraud scammer, who is out of prison, and has reformed.

"The problem is increasing at an exponential rate," said J. Russell George, the Inspector General for Tax Administration, which oversees and audits the IRS. "In 2012, over a quarter million claims have been requested, requesting almost 2 billion dollars in refunds."

Coming up tonight on WILX News Ten at 6 p.m. an in-depth investigation into how the prison tax fraud scam got started, how much it's costing Michiganders and what the IRS is doing to stop it.


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