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Report: IRS refunded $4B to identity thieves

WASHINGTON (AP) — The Internal Revenue Service issued $4 billion in fraudulent tax refunds last year to people using stolen identities, with some of the money going to addresses in Bulgaria, Lithuania and Ireland, according to a Treasury report released Thursday.

The IRS sent a total of 655 tax refunds to a single address in Lithuania, and 343 refunds went to a lone address in Shanghai.

In the U.S., more fraudulent returns went to Miami than any other city. Other top destinations were Chicago, Detroit, Atlanta and Houston.

The IRS has stepped up efforts to fight identity theft, but thieves are getting more aggressive, said the report by J. Russell George, Treasury's inspector general for tax administration. Last year, the IRS stopped more than $12 billion in fraudulent refunds from going to identity thieves, compared with $8 billion the year before.

"Identity theft continues to be a serious problem with devastating consequences for taxpayers and an enormous impact on tax administration," George said in a statement. The fraud "erodes taxpayer confidence in the federal tax system."

Thieves often steal Social Security numbers from people who don't have to file tax returns, including the young, the old and people who have died, the report said. In other cases, thieves use stolen Social Security numbers to file fraudulent tax returns before the legitimate taxpayer files.

The IRS, which takes pride in issuing quick refunds, often sends them out before employers are required to file forms documenting wages, the report said.

"The constantly evolving tactics used by scammers to commit identity theft continues to be one of the biggest challenges facing the IRS, and we take this issue very seriously," the IRS said in a statement. "The IRS has a comprehensive and aggressive identity theft strategy that focuses on preventing refund fraud, investigating these crimes and assisting taxpayers victimized by it."

Despite budget cuts, the agency said, agents have resolved more than 565,000 cases of identity theft this year, three times the number of cases resolved at the same time last year.

A separate report by George said the number of identity theft victims is on the rise as thieves get more aggressive.

Through June, the IRS identified 1.6 million victims who had their identities stolen during this year's tax filing season, the report said. That compares with 1.2 million victims in 2012.

Many of these people didn't realize they were victims until they submitted their returns, only to learn from the IRS that someone else had already used their Social Security number to file and claim a refund.

The IRS does a good job of eventually identifying the proper owner of Social Security numbers, but the process can be lengthy, the report said. For cases closed between August 2011 and July 2012, it took an average of 312 days to resolve the case and issue a proper refund, the report said.

The IRS said has resolved most of this year's identity theft cases within 120 days.

Last year, the IRS issued 1.1 million refunds to people using stolen Social Security numbers, the inspector general's report said. Those refunds totaled $3.6 billion.

Additionally, the IRS issued 141,000 refunds last year to people using stolen Taxpayer Identification Numbers, which are typically used by foreign nationals who earn money in the U.S. Those refunds totaled $385 million, the report said.

___

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Associated PressSource: http://hosted2.ap.org/APDEFAULT/89ae8247abe8493fae24405546e9a1aa/Article_2013-11-07-IRS-Identity%20Theft/id-10f44906bc544cbca3b167d2b738ac19
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Kerry heading to Geneva in sign of Iran progress

Iranian Foreign Minister Mohammed Javad Zarif waits for the start of two days of closed-door nuclear talks at the United Nations offices in Geneva Switzerland, Thursday, Nov. 7, 2013. Six world powers are dangling the prospect of easing some sanctions against Iran if Tehran agrees to curb work that could be used to make nuclear weapons. Talks resume Thursday between Iran and the six _ The United States, Russia, China, Britain, France and Germany. (AP Photo/Keystone, Martial Trezzini)

U.S. Under Secretary of State for Political Affairs Wendy Sherman arrives prior to the start of two days of closed-door nuclear talks at the United Nations offices in Geneva Switzerland, Thursday, Nov. 7, 2013. Six world powers are dangling the prospect of easing some sanctions against Iran if Tehran agrees to curb work that could be used to make nuclear weapons. Talks resume Thursday between Iran and the six _ The United States, Russia, China, Britain, France and Germany. (AP Photo/Keystone, Martial Trezzini)

A general view shows participants before the start of two days of closed-door nuclear talks at the United Nations offices in Geneva Switzerland, Thursday, Nov. 7, 2013. Six world powers are dangling the prospect of easing some sanctions against Iran if Tehran agrees to curb work that could be used to make nuclear weapons. Talks resume Thursday between Iran and the six _ The United States, Russia, China, Britain, France and Germany. (AP Photo/Keystone, Martial Trezzini)

EU High Representative for Foreign Affairs Catherine Ashton, left, speaks with Iranian Foreign Minister Mohammed Javad Zarif, right, during a photo opportunity prior the start of two days of closed-door nuclear talks at the United Nations offices in Geneva Switzerland, Thursday, Nov. 7, 2013. Six world powers are dangling the prospect of easing some sanctions against Iran if Tehran agrees to curb work that could be used to make nuclear weapons. Talks resume Thursday between Iran and the six _ The United States, Russia, China, Britain, France and Germany. (AP Photo/Keystone, Martial Trezzini)

EU High Representative for Foreign Affairs Catherine Ashton, right, walks next to Iranian Foreign Minister Mohammed Javad Zarif, left, during a photo opportunity prior to the start of two days of closed-door nuclear talks at the United Nations offices in Geneva Switzerland, Thursday, Nov. 7, 2013. Six world powers are dangling the prospect of easing some sanctions against Iran if Tehran agrees to curb work that could be used to make nuclear weapons. Talks resume Thursday between Iran and the six _ The United States, Russia, China, Britain, France and Germany. (AP Photo/Keystone, Martial Trezzini)

GENEVA (AP) — Iran's chief nuclear negotiator signaled progress at talks with six world powers Thursday on a deal to cap some of his country's atomic programs in exchange for limited relief from sanctions stifling Iran's economy, saying the six had accepted Tehran's proposals on how to proceed.

U.S. officials said Secretary of State John Kerry will fly to Geneva on Friday to participate in the negotiations — a last-minute decision that suggests a deal could be imminent.

A senior State Department official traveling with Kerry in Amman, Jordan, said the secretary would come to Geneva "to help narrow differences in negotiations." The official spoke on condition of anonymity because he was not authorized to release information about the Geneva visit.

Even if an agreement is reached, it would only be the start of a long process to reduce Iran's potential nuclear threat, with no guarantee of ultimate success.

Still, a limited accord would mark a breakthrough after nearly a decade of mostly inconclusive talks focused on limiting, if not eliminating, Iranian atomic programs that could be turned from producing energy into making weapons.

Tehran's chief nuclear negotiator, Abbas Araghchi, told Iranian state TV that the six — the United States, Russia, China, Britain, France and Germany — "clearly said that they accept the proposed framework by Iran." He later told CNN that he thinks negotiators at the table are now "ready to start drafting" an accord that outlines specific steps to be taken.

Though Araghchi described the negotiations as "very difficult," he told Iranian state TV that he expected agreement on details by Friday, the last scheduled round of the current talks.

The upbeat comments suggested that negotiators in Geneva were moving from broad discussions over a nuclear deal to details meant to limit Tehran's ability to make atomic weapons. In return, Iran would start getting relief from sanctions that have hit its economy hard.

U.S. officials said Kerry will travel to the Geneva talks after a brief stop in Israel, where he will hold a third meeting with Israeli Prime Minister Benjamin Netanyahu, who has spoken out against any limited deal that would allow the Iranians sanctions relief.

In Geneva, Kerry is expected to meet Friday with the European Union's top diplomat, Catherine Ashton, and Iranian Foreign Minister Mohammad Javad Zarif, the officials said. They spoke on condition of anonymity because they were not authorized to comment on the schedule.

The talks are primarily focused on the size and output of Iran's enrichment program, which can create both reactor fuel and weapons-grade material suitable for a nuclear bomb. Iran insists it is pursuing only nuclear energy, medical treatments and research, but the United States and its allies fear that Iran could turn this material into the fissile core of nuclear warheads.

International negotiators representing the six powers declined to comment on Araghchi's statement. Bur White House spokesman Jay Carney elaborated on what the U.S. calls a "first step" of a strategy meant to ultimately contain Iran's ability to use its nuclear program to make weapons.

An initial agreement would "address Iran's most advanced nuclear activities; increase transparency so Iran will not be able to use the cover of talks to advance its program; and create time and space as we negotiate a comprehensive agreement," Carney told reporters in Washington.

The six would consider "limited, targeted and reversible relief that does not affect our core sanctions," he said, alluding to penalties crippling Tehran's oil exports. If Iran reneges, said Carney, "the temporary, modest relief would be terminated, and we would be in a position to ratchet up the pressure even further by adding new sanctions."

He described any temporary, initial relief of sanctions as likely "more financial rather than technical." Diplomats have previously said initial sanction rollbacks could free Iranian funds in overseas accounts and allow trade in gold and petrochemicals.

Warily watching from the sidelines, Israel warned against a partial agreement that foresees lifting sanctions now instead of waiting for a rigorous final accord that eliminates any possibility of Iran making nuclear weapons.

At a meeting with U.S. legislators in Jerusalem, Netanyahu spoke of "the deal of the century for Iran." While divulging no details, he said the proposed first step at Geneva "will relieve all the (sanctions) pressure inside Iran."

The last round of talks three weeks ago reached agreement on a framework of possible discussion points, and the two sides kicked off Thursday's round focused on getting to that first step.

Thursday's meeting ended about an hour after it began, followed by bilateral meetings, including one between the U.S and Iranian delegations. EU spokesman Michael Mann said the talks were "making progress."

Before the morning round, Zarif, the Iranian foreign minister, met with the EU's Ashton, who is convening the meeting. Asked afterward about the chances of agreement on initial steps this week, Zarif told reporters: "If everyone tries their best, we may have one."

After nearly a decade of deadlock, Iran seems more amenable to making concessions to the six countries. Iran's new president, Hassan Rouhani, has indicated he could cut back on the nuclear program in exchange for an easing of sanctions.

Despite the seemingly calmer political backdrop, issues remain.

Iranian hardliners want a meaningful — and quick — reduction of the sanctions in exchange for any concessions, while some U.S. lawmakers want significant rollbacks in Iran's nuclear activities in exchange for any loosening of actions.

_____

Associated Press Diplomatic Writer Matthew Lee in Amman, Jordan, contributed to this report. AP writers Josef Federman in Jerusalem, Jim Kuhnhenn in Washington and Nasser Karimi in Tehran also contributed.

Associated PressSource: http://hosted2.ap.org/APDEFAULT/3d281c11a96b4ad082fe88aa0db04305/Article_2013-11-07-Iran-Nuclear%20Talks/id-3fbaf564e75946f599a3d08c6827c588
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This Pedal-less Porsche Bicycle Will Be the Talk of the Cul-de-Sac

Apparently, Volkswagen has realized that kids who ride Porsches grow up to be adults who buy and drive Porsches. It's the same strategy that Adobe uses by selling Photoshop dirt cheap to students. But will learning to ride a two-wheeler on this luxurious Porsche balance bike give toddlers a taste for the finer things in life?

GE experimenting with '3D painting' to repair metal parts

Everyone is already all over this whole 3D printing thing. But 3D painting? It's a much emptier field. GE is experimenting with such a technology called "cold spray" that slowly builds up layers of metal by spraying metal powder at extremely high velocities. Instead of recreating works of art, the process is used to repair worn metal components, adding years or potentially decades to their life span. Unlike 3D printing which is severely limited in the size of the objects it can create, 3D painting is only limited by the spread of its spray. That means it could potentially be used to create or repair large structures, and not just prototype scale models of them. In particular, the process is being looked at as a way to repair parts used in oil and gas drilling. It could even be done on the scene and, unlike welding, there's no heat involved -- so there's very little chance for a fire or explosion. (And who wouldn't like to make our gas and oil wells safer.) For a quick demo of the process, check out the video after the break.

Source: http://www.engadget.com/2013/11/07/ge-experimenting-with-3d-painting/?ncid=rss_truncated
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Players divided regarding Dolphins' Martin

Miami Dolphins coach Joe Philbin talks to the media during a news conference after practice at the Dolphins training center in Davie, Fla., Wednesday, Nov. 6, 2013. NFL officials launched an investigation to try and determine who knew what and when about the troubled relationship between offensive lineman Richie Incognito and Jonathan Martin. (AP Photo/J Pat Carter)

Miami Dolphins general manager Jeff Ireland, left, stands with head trainer Kevin O'Neill, right, during the NFL football team's practice Wednesday, Nov. 6, 2013, in Davie, Fla. (AP Photo/Lynne Sladky)

DAVIE, Fla. (AP) — In a culture that fosters conflict, Jonathan Martin sought to avoid it.

Upset by treatment he considered abusive, the Miami Dolphins tackle let the situation fester for months before leaving the team last week. Martin's agent then complained to the Dolphins, who suspended guard Richie Incognito.

The NFL is investigating whether Incognito harassed or bullied Martin, and whether their teammates and the organization mishandled the matter.

Some say Martin, a Stanford graduate who went about his business quietly, handled the situation well. But pro football is a macho world, and some players believe Martin should have responded more firmly.

"Is Incognito wrong? Absolutely. He's 100 percent wrong," New York Giants safety Antrel Rolle said. "No individual should have to go through that, especially in their workplace.

"But at the same time, Jonathan Martin is a 6-4, 320-pound man. I mean, at some point and time you need to stand your ground as an individual. Am I saying go attack, go fight him? No. I think we all understand we can stand our ground without anything being physical."

Dolphins players have robustly defended Incognito, long considered among the NFL's dirtiest players. He's now a notorious national villain, but teammates praise his leadership and loyalty.

They've been less passionate in their support of Martin, saying he and Incognito behaved like best friends.

"They did a lot of stuff together," tackle Tyson Clabo said. "So if he had a problem with the way he was treating him, he had a funny way of showing it."

Martin is with his family in California to undergo counseling for emotional issues.

A senior partner in a New York law firm was appointed by NFL Commissioner Roger Goodell to investigate possible misconduct and prepare a report. DeMaurice Smith, executive director of the NFL Players Association, said Thursday that he continues to be in touch with those involved.

"The NFLPA has taken steps to ensure that every one of our affected members is represented," Smith said in a statement. "It is our duty as a union to learn the full facts, protect the interests of players involved and hold management accountable to the highest standards of fairness and transparency."

The alleged bullying saga engulfing the Dolphins has shed a light on how damaging perceptions can be in the violent world of the NFL.

A Pittsburgh native, Martin is the son of Harvard graduates and his great grandfather also graduated from the school in 1924. At Stanford he protected Andrew Luck's blind side, and also majored in the classics.

Taken in the second round of the 2012 draft, Martin has what it takes physically to be an NFL player — size, skill, athleticism, intelligence. He won praise from the Dolphins for his diligent study of game and practice video.

But while has been a starter since the first game of his rookie season, Martin developed a reputation in the NFL for lacking toughness. That impression might have been reinforced by the way he handled his issues with Incognito, current and former teammates acknowledge.

"A lot of people might look at Jonathan Martin and think that he's soft because he stepped away from the game, and say, 'Why don't you just fight him?'" said Seattle Seahawks receiver Doug Baldwin, who played with Martin at Stanford. "Well, if you look at it with common sense and being logical, what options did Jonathan Martin have?

"He could fight Richie Incognito. He could go and tell on the players, which we know in the football locker room doesn't go over too well. Or he could remove himself from the situation and let the proper channels take care of itself. And I think he made the intelligent, smart choice without putting himself or Richie Incognito's physical abilities in danger."

Houston Texans Antonio Smith, who has accused Incognito of dirty play since they went against each other in college, said Martin should have responded more forcefully. Smith drew a three-game suspension this year for taking Incognito's helmet and hitting him during an exhibition game.

"I don't think that in my opinion a grown man should get bullied," Smith said. "And I think that if you're realistically getting bullied, there's only one way my mom taught me and my dad taught me how to get rid of bullies. They used to always say, 'You hit a bully in the mouth. It will stop him from bullying, no matter what you hit him with.'"

Incognito's harassment of Martin included text messages that were racist and threatening, two people familiar with the situation have told The Associated Press. Incognito is white, while Martin is biracial.

Two other people familiar with the situation have said Martin talked of quitting football earlier in his pro career before leaving the Dolphins. One person said Martin considered giving up the sport because of the way he was being treated by other offensive linemen on the team. The person added that Martin now wants to continue his football career.

The Dolphins (4-4) play for the first time since the scandal broke Monday night at Tampa Bay (0-8). At least 75 reporters and cameramen tracking the case were in the locker room after Thursday's practice, but receiver Brian Hartline said the scrutiny won't prevent the team from playing well.

"It almost heightens your awareness," he said. "You know it's going to take away from your focus, so it does the exact opposite. You overcompensate to make sure you stay aware of the game."

___

AP Sports Writers Tim Booth in Seattle, Tom Canavan in East Rutherford, N.J., and Kristie Rieken in Houston contributed to this report.

___

AP NFL website: www.pro32.ap.org and http://twitter.com/AP_NFL

___

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Associated PressSource: http://hosted2.ap.org/APDEFAULT/347875155d53465d95cec892aeb06419/Article_2013-11-07-Dolphins%20Turmoil/id-1db19734992a47d5bc21cfd48b7db198
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US documents raise questions on Munich art hoard

BERLIN (AP) — U.S. military documents are increasing the mystery surrounding the more than 1,400 artworks found in a Munich apartment.

In the chaotic aftermath of World War II, the American military seized 20 boxes of art from German dealer Hildebrand Gurlitt in Aschbach in December 1945, according to documents located by The Associated Press in the U.S. National Archives in Washington.

Gurlitt had worked closely with the Nazi regime in the 1930s to sell art it considered "degenerate" to fill its war coffers.

American investigators at the time expressed doubts about Gurlitt's claims to the works, but they eventually decided that in most cases he was the rightful owner. So on Dec. 15, 1950, the U.S. returned 206 items to him: 115 paintings, 19 drawings and 72 "various other objects."

At least three of the artworks documented by the Americans have now re-surfaced, found hidden in the Munich apartment of Gurlitt's son, 80-year-old Cornelius Gurlitt, during a tax evasion probe that German prosecutors announced earlier this week.

The three paintings that the Americans returned to Cornelius' father in 1950 and which have showed up in the Munich trove are Max Liebermann's "Two Riders on the Beach;" Otto Dix's self-portrait and an allegorical painting by Marc Chagall.

Also found in the son's apartment were paintings, drawings, engravings, woodcuts and prints by Henri Matisse, Pablo Picasso, Pierre-Auguste Renoir, Oskar Kokoschka, and leading German artists Dix, Liebermann and Ernst Ludwig Kirchner.

Prosecutors gave few further details about the overall collection. Still, they said they found evidence that at least one item in the Munich apartment — a Henri Matisse painting of a sitting woman — was stolen by the Nazis from a French bank in 1942.

Christoph Zuschlag, an art historian at the University of Koblenz, said the American documents indicated U.S. investigators suspected right after the war that Gurlitt may have been in possession of looted art.

He said if German authorities published a full list of the find at the apartment, then experts could determine more quickly whether Gurlitt was the rightful owner.

"As a historian, I have to say pictures and information about all the art has to be published online immediately," he said. "A whole team of experts should work on this discovery and try to answer all the remaining open questions."

German prosecutors who are pursuing the tax case against Cornelius Gurlitt — whose whereabouts are currently unknown — said this week they had "concrete evidence" the artworks found in his apartment included both "degenerate art" seized from German museums and other works that may have been taken from individuals.

Museums, galleries and the heirs to those individuals, likely Jewish collectors forced to give up or sell their art at rock-bottom prices, could now have claims.

The Conference on Jewish Material Claims Against Germany, which administers restitution claims from victims of Nazi crimes, said the quickest and most efficient way to clear up any doubts would be for prosecutors to release a complete list.

Spokeswoman Hillary Kessler-Godin said the Claims Conference already has an online database of 20,000 looted objects based on the Nazis' own records that is searchable by owner, artist and other keywords. She said that could be easily used to determine if there are any claims on the Gurlitt collection.

"Our experts believe that a number of the works found in Munich could be in this database," Kessler-Godin said in an email. "Keeping the list a secret hinders the process of expeditious restitution."

When U.S. investigators questioned Hildebrand Gurlitt in 1945 about the origin of his collection, he told them that he had taken the art with him to Aschbach when he and his family fled Dresden after the city was devastated by Allied bombing in February 1945.

"All pictures I brought with me ... are the personal property of my family or myself," Gurlitt told the American interrogators, according to the U.S. documents. But he said it would be hard for him to prove his ownership of the collection, because all his records and correspondence were "destroyed in Dresden."

One U.S. investigator at the time noted inconsistencies in Gurlitt's claims to various paintings, while another said he "gave an impression of extreme nervousness and of offering only a minimum of information."

Marc Masurovsky, an expert on Nazi-era art transactions and co-founder of the Holocaust Art Restitution Project in Washington, said it is likely that Cold War-era investigators questioning a West German who had re-established himself in society probably just took the easy route.

"The political atmosphere was: We're just going to go back to work again and not ask lots of uncomfortable questions," he told the AP.

Masurovsky, who independently also found the National Archives documents and posted them on the Internet, said they raise more questions than they answer.

"The returned objects are 10 percent of the load" found in Munich, he said in a telephone interview. "Where did the other 90 percent come from? Did Gurlitt have several stashes of art? How many works did he already sell off?"

____

AP Investigative researcher Randy Herschaft contributed from New York.

Source: http://news.yahoo.com/us-documents-raise-questions-munich-art-hoard-180836313.html
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AP Photos: Nashville turns up the glamour at CMAs

Country music stars were all dressed up with somewhere to go: the Country Music Awards.

The event in Nashville, Tenn., on Wednesday night was another chance for Taylor Swift to be belle of the ball and this time she did it in a bateau-neck red gown with embroidery and a thin leather belt by Elie Saab.

But there were other stars who took this moment in the spotlight to shine — in sequins and baubles — including Jennifer Nettles, who wore a crystal-and-mirror beaded gown by Naeem Khan on the red carpet and a Georges Chakra blush-colored beaded jumpsuit onstage.

Carrie Underwood did several outfit changes. Among them: She wore a midnight-blue gown with white porcelain cherry blossoms by Theia and a short, black tuxedo-style romper by Chagoury decorated with Swarovski crystals.

Kacey Musgraves went with a short-hemline head turner, choosing a yellow handkerchief dress by Sally LaPointe for her performance. Earlier she was in a Blumarine outfit with a short dress under a long, sheer floral overlay. Kimberly Perry of The Band Perry did the short-long switch, too, in a 14-karat gold and sterling mesh mini by Rubin Singer when she was singing and a more delicate ivory-colored embroidered gown for the arrivals line.

Connie Britton did her own two-in-one turn in a Georges Hobeika gown that had a demure black-beaded collar and a slim, sexy bodice.

___

Follow Samantha Critchell and AP Fashion coverage on Twitter at @AP_Fashion and @Sam_Critchell.

Source: http://news.yahoo.com/ap-photos-nashville-turns-glamour-cmas-182445848.html
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