IRS botches vetting on $46 million in refunds

Monday, January 4th, 2016 @ 5:07PM

IRS botches vetting on $46 million in refunds

By Sylvan Lane – 12/21/15 03:02 PM EST

The IRS doled out $46 million in improperly vetted tax refunds during the 2013 tax year, according to a report released Monday.

Government inspectors blamed a programming error and incomplete reviews for the release of millions of dollars through potentially fraudulent claims.

The Treasury Inspector General for Tax Administration (TIGTA) identified $27 million in refunds issued after a programming error overrode two-week processing delays the IRS places on potentially fraudulent claims. Inspectors said another $19 million in refunds did not appear to be properly vetted by IRS agents.

Posted by cfegov
Categories: Uncategorized

No comments yet. Be the first!

What is the Identity Theft Tax Refund Fraud Problem?

In general, tax-related identity theft occurs when an individual intentionally uses the Social Security number (SSN) of another person to file a false tax return with the intention of obtaining an unauthorized refund. Identity theft wreaks havoc on our tax system in many ways. Victims of identity theft not only must deal with the aftermath of an emotionally draining crime, but may also have to deal with the IRS for years to untangle the resulting tax account problems. Identity theft also impacts the public fisc, as Treasury funds are diverted to pay out improper refunds claimed by opportunistic perpetrators. In addition, identity theft takes a significant toll on the IRS, tying up limited resources that it could otherwise shift to taxpayer service or compliance initiatives