Complete bullshit.
Originally Posted by timpage
Not "complete bullshit"!
There are a staggering number of people who are claiming to be "not" married, when they actually are, and they file separate returns as single with one of them claiming "single head of household" and getting the benefit of "tax credits" and getting not only their contributions back by a "credit" on top of it.
The IRS is claiming because of budget cuts it lacks the manpower to monitor and audit the taxpayers to stop the practice, and to verify that the individuals are actually the persons issued the SS #.
Now whether the total amounts to billions or a billion may be an estimate based on a % of those taxpayers identified, rather than a to-the-penny audit. For your additional information there are at least some instances when state court judges "look the other way" to the practice and so do some assistant state attorney's general when they are collecting child support.
It is tax fraud, and the cases are not "isolated." BTW some of the franchise tax prep businesses are cranking out those returns... and loaning against them.