Tax Code
Tax Evasion
7201
A form of cyber protection that adds a second layer of authentication to any account that requires a login
2-Factor Authentication
TRUE or FALSE: In the last 4 years, the IRS has not experienced a data breach of any kind.
FALSE
This celebrity tax evader now co-stars on a show with Snoop Dogg
Martha Stewart
TRUE or FALSE: Millenials (20-29) are more likely to become victims of cyber crime than elderly people (70+)
TRUE
Failure to File
7203
The average amount stolen on a single fraudulent transaction (Give or take $10K)
$130,000
The average amount of time it took for a taxpayer whose returns were incorrectly flagged as fraudulent was ____ weeks (Give or take 2 weeks)
18 weeks
The year that Al Capone was CONVICTED of tax evasion (Give or take 2 years)
1931
DAILY DOUBLE: Number of years he was sentenced
If you are suspected of a tax crime the IRS will initially contact you using this form of communication
False Return
7206
2 possible motivations for committing tax fraud other than greed that were mentioned in this presentation
Personal grudge, ideological, military-style
In 2013 it was estimated that the IRS paid out ____ due to fraudulent returns (Give or take $300M)
$5.8B
Last month, this beloved reality star was sentenced to 8 months in prison for tax evasion
The Situation
Two things that people posing as IRS officials do to seem more convincing to their victim
Official looking seals, wording taken from IRS emails, fake call center noise in background, etc.
Tax Obstruction
7212
Other than monetary loss, 2 additional consequences for a company that is the victim of a data breach that were mentioned in this presentation
Loss of trade secrets, theft of proprietary information, reputational damage, loss of goodwill
In 2013, ____% of returns flagged by the IRS as "potentially fraudulent" that were not actually fraudulent (Give or take 3%)
36.2%
After the IRS came down on this celebrity for not paying their taxes, it was later discovered that Price Waterhouse had invested their money instead of paying taxes on it
Willie Nelson
The first two steps to determining whether you qualify for a tax-amnesty program
1. What caused the tax problem
2. What your state of mind was when the infraction took place
Fraudulent Withholding Exemption
7205
Average cost of a data breach in 2015, according to IBM study (Give or take $200K)
$6.5M
Conviction rate for tax crimes in U.S. (Give or take 3%)
91.5%
This person won a popular primetime reality TV competition and accepted a $1,000,000 check on national television with over 50 million people watching... but didn't pay taxes on it
Richard Hatch
Name 3 tax amnesty programs
Domestic Tax Evasion Amnesty
Offshore Tax Evasion Amnesty
Offshore and Domestic
Unfiled Domestic Income
Understated Domestic Income