Phoenix, AZ (PRWEB) November 23, 2011
Technology developed by Randall C. Sorensen, CPA, would cure the gross overpayment of Earned Income Credit as a result of fraud. The Internal Revenue Service estimates that 23 to 28 percent of Earned Income Credit payments are issued improperly each year, which equates to between $11 billion and $13 billion. According to statistics on the IRS website, 27 million tax filers will split a $60 billion dollar money pie called Earned Income Credit. Back in 2004, Randall Sorensen CPA documented the Treasury paying a woman $4,500 by reporting $12,000 from a phantom business. Since that time he documented another individual who falsely reported $30,000 when she actually earned $70,000. In yet another instance, a woman wrote-off $21,000 in bogus business expenses. She was able to write-off 500 business miles on her tax return for every house that she cleaned. This resulted in a $6,500 tax refund courtesy of honest American taxpayers. The Super Committee needs to stop the flow of money to tax criminals that have never mailed the Treasury a dollar. In contrast, the Super Committee wants to target 24 million Americans who entrusted the Treasury with between $100,000 and $400,000 of their hard earned money.
Recently Randall Sorensen CPA developed software is called EICCA (Earned Income Credit Compliance Audit) that will identify EIC tax frauds in real-time. Mr. Sorensen has practiced as a financial forensic expert for over 25 years. During the course of 20 years, one unscrupulous taxpayer can defraud the US Treasury as much as $300,000 and never have to pay a dime or work a day in their life.
EICCA works fast and efficient. Preliminary test results on 500,000 tax returns were completed in 30 minutes and we anticipate being able to test ALL 27 million EIC tax filers in 5 hours. Mr. Sorensen states: “We estimate that EICCA could identify $2.1 billion in earned income credit tax fraud and reduce the Tax Gap by another $800 million for a total savings of $2.9 billion in 2012.” Eliminating 10% of the EIC fraud over a five year period would translate into a saving to the US Treasury of $116 billion over the next ten years. Mr. Sorensen sent his proposal to the Super Committee, 126 members of Congress and the Commissioner of the IRS. Mr. Sorensen states. “The Super Committee should take me on my challenge. The IRS won’t have to invest a single dollar in technology that’s already proven. What does the Super Committee have to lose by making a five hour investment?”
Randall Sorensen, CPA has been practicing accounting for over 30 years and has specifically worked as a forensic accountant for over 25 years. Randall Sorensen’s accounting practice is located in Phoenix, Arizona. Mr. Sorensen can be reached at 1-480-752-0000.
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