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Tax deadbeats have a new foe: social networks

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Sep 3, 2009 

Author

Edward Barrera  |

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Tax deadbeats have a new foe: social networks

ADOTAS — When I worked for a newspaper, I found too many people way too easily by checking sites like MySpace.

That was one of the reasons I never finished creating a MySpace account. Now I have another reason. According to the WSJ, state tax agents have been nabbing deadbeats, using information posted on social-networking Web sites, from relocation announcements to professional profiles to financial boasts.

In Minnesota, a long-sought tax evader was caught after he announced on MySpace that he would be returning to his home town to work as a real-estate broker and gave his employer’s name. And the feds are getting involved to. One agent collected $30,000 of unpaid tax from a resident after a Google search found him listed as a high-ranking local marketing rep for a national firm.

“These new supplements are often far more efficient than the older ones, such as reading the local newspaper or making inquiries at barbershops and church meetings,” Jim Eads, director of the Federation of Tax Administrators, told the WSJ.

Alas, the some states only allow agents to use publicly available information. You can’t fake a friend request on Facebook, for instance. Some states are looking for ways to use the information to enhance not only collections but also audits and negotiations.

I’m not a government intrusion kind of guy when it comes to some things. But if you’re knowingly breaking the law, you shouldn’t be surprised if agents use trickery – like fake friending – to catch you. Guess I should check my list again.

Tags: deadbeats, social-networks and tax

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