IRS may have refunded $5 billion or more to identity thieves
Wednesday, January 16th, 2013 @ 8:40PM
They estimate another $21 billion could make its way to ID thieves over the next five years.
The IRS is detecting far fewer fraudulent tax refund claims than actually occur, according to a government audit that warned the widespread problem could undermine public trust in the U.S. tax system.
Although the IRS detected about 940,000 fraudulent returns for last year claiming $6.5 billion in refunds, there were potentially another 1.5 million undetected cases of thieves seeking refunds after assuming the identity of a dead person, a child or someone who normally wouldn’t file a tax return.