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IG: IRS Discouraged Rooting Out Tax ID Fraud

From Fox News:

Report finds widespread fraud in taxpayer ID program

By Mike Emanuel | Thursday August 09, 2012

A recently released report shows widespread tax fraud in connection with the federal government’s Individual Taxpayer Identification Number program.

The U.S. Treasury inspector general report accuses the IRS of discouraging employees from reviewing applications for the ID numbers, which are generally from non-resident workers.

Now why would they do that?

The inspector general specifically said there were 154 mailing addresses that were used 1,000 or more times on applications, including 15,795 numbers assigned to a Phoenix address.

The report, which evaluated the processing year 2011, also found inadequate controls can result in the numbers being assigned to people who have not proved their identity or foreign status, which can result in fraudulent tax returns.

The inspector general also found 10 individual addresses were used for filing 53,994 tax returns and receiving $86.4 million in fraudulent tax refunds. For example, 23,994 tax refunds totaling $46.3 million were issued to an address in Atlanta; and 2,507 tax refunds totaling $10.4 million were issued to an address in Oxnard, Calif.

In addition, the Treasury’s Inspector General for Tax Administration reports found 10 bank accounts received 23,560 tax refunds totaling more than $16 million — including: 2,706 tax refunds issued to a single account totaling $7.3 million

The Wall Street Journal gives a little more detail as to how this is happening:

IRS Managers Discouraged Examiners from Rooting Out Fraud – Report

By Siobhan Hughes | August 8, 2012

WASHINGTON–Internal Revenue Service supervisors discouraged employees from rooting out fraud in a program that assigns taxpayer-identification numbers to non-U.S. residents and others who don’t qualify for a Social Security number, according to a report from the Treasury Inspector General for Tax Administration.

The management failures–including a focus on processing applications quickly instead of accurately–allow for the creation of fictitious identities, meaning some people who don’t qualify can end up with a taxpayer-identification number, the Treasury Inspector General for Tax Administration found…

The inspector general initiated the audit after IRS employees complained about how the taxpayer-identification-number program was managed. IRS tax examiners had said training wasn’t adequate, with only one hour of a total 39.5 hours of training spent on questionable documentation…

Earlier this month, the IRS said the problem may have been worse than previously thought, noting as many as 1.5 million returns claiming $5.2 billion in fraudulent refunds might have escaped detection last year…

One tax break noted in the report is the additional-child tax credit, a refundable credit of as much as $1,000 per child that can be paid out even if it exceeds a taxpayer’s total federal income tax. For individual taxpayer IDs assigned in 2011, more than 481,500–or 71%–were associated with claims for the additional-child tax credit, totaling more than $916 million, the report found.

So it looks like the Obama administration has found yet another way to redistribute taxpayer money to its constituents.]

This article was posted by Steve on Thursday, August 9th, 2012. Comments are currently closed.

One Response to “IG: IRS Discouraged Rooting Out Tax ID Fraud”

  1. canary says:

    I forgot. Obama gave $160 million dollars to Canadian owned Brookfield Properties.

    I forgot the details. The park in NYC that the Wall Street protesters occupied is Zuccotti Park owned by Brookfield Properties?.

    Brookfield is a Canadian company with assets of 70 billion and did not need the loan.

    And Brookfield Properties attorney was Vice President Joe Biden’st son, who I thought was in politics.

    Something to do with NYC Mayor Bloomberg’s girlfriend being on the board of Brookfield Properties.

    And is it true Brookfield Properties received Obama Stimulus money even though they are Canada.

    I would not be surprised since he gave all this money for Indonesia green projects.

    And Obama gave our best ship to Indonesia to deep sea explore, so it wasn’t around for the BP spill.

    Romney better hit hard on failed green programs and forget he will be called on the table for his. It will help either way to tell of the money down the drain.

    And Romney had better get to listing all the overseas money and jobs Obama gave to other countries.

    What Romney did as a business man overseas is irrelevant as to what the President of the U.S. does.

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