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Michelle Dimarob, or Sarah Swinehart (202) 226-4774 | |
Report Reveals IRS Failing to Detect or Prevent Fraudulent Tax Returns
Wednesday, August 08, 2012
Washington, DC - Today, Oversight Subcommittee Chairman Charles Boustany Jr., M.D. (R-LA) sent Internal Revenue Service (IRS) Commissioner Doug Shulman a letter demanding answers on a report from the Treasury Inspector General for Tax Administration (TIGTA) revealing the IRS may be blatantly ignoring fraudulent tax returns and applications for the Individual Taxpayer Identification Number (ITIN). The report raises concerns about whether IRS management has made preventing and catching fraud a priority for the agency. Specifically, the report notes that IRS procedures appear to discourage employees from flagging potentially fraudulent ITIN applications, and that IRS management went so far as to disband a review group with proven success at identifying fraudulent activity. Below are examples of some of the extreme fraud the agency failed to identify after IRS management weakened the agency’s integrity measures:
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