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Prison inmates claim $3.7 billion in phony tax refunds

Convicts buying luxury cars, clothes

By Ron Regan
ABC News 5

WASHINGTON, D.C. — Fraudulent income tax returns continue to be filed by prison inmates despite the IRS being warned of an increase in phony tax returns.

Our exclusive 5 On Your Side investigation has been tracking inmates who file fraudulent tax returns since a Treasury Inspector General for Tax Administration report was first issued in September 2005.

One inmate described buying expensive luxury cars, clothes — even lake homes with cash from phony tax returns.

Full story: Prison inmates claim $3.7 billion in phony tax refunds