Unaware of the fraud, the IRS approved payment of Box’s refund and applied over $250,000 to Box’s 2005 and 2006 tax liabilities and to non-IRS debt. The United States Treasury sent the remainder of the refund to Box via a check for over $735,000. Box endorsed and deposited the check knowing that the refund did not belong to him.
In the end, the IRS determined that Box’s 2011 federal income tax return was in fact fraudulent. The claimed gambling winnings, the withholdings and the losses were all fabricated. As a result of the fraudulent misrepresentations on Box’s tax return, the IRS sustained a loss of almost $1 million.
