TIGTA performed an audit to determine how effective the IRS is at detecting and preventing identity theft. The watchdog also looked at how the IRS is measuring undetected identity theft and coordinating identity theft information with other agencies and tax industry partners.
TIGTA identified 568 Cheap Michael Dickson Jersey ,329 undetected potentially bogus tax returns with refunds totaling more than $1.6 billion for tax year 2013. That鈥檚 a drop of more than $523 million from the prior year, the report states.
However, the false reporting of wages and withholding accounts for the largest amount of undetected potentially fraudulent refunds at $1.3 billion. TIGTA believes the new Jan. 31 deadline for employers to file their W-2 forms with the Social Security Administration will reduce this type of fraudulent return.
The new Jan. 31 filing deadline also applies to certain Forms 1099-MISC reporting nonemployee compensation Cheap Will Dissly Jersey , such as payments to independent contractors.
TIGTA also noted that using states鈥?lead data during tax return processing could improve detection of identity theft.
TIGTA also discovered that the accuracy of the Identity Theft Taxonomy quantification for both protected and unprotected revenue needs improvement. As an example, the IRS鈥檚 estimate of protected revenue was overstated by almost $2.4 billion as a result of the wrong calculation of refunds associated with rejected electronically filed tax returns.
The audit resulted in the following six recommendations, which the IRS agreed with:
1. Expand the use of identity theft models to include all accelerated W-2s to compare with tax returns for possible identity theft. 2. Develop criteria to identify and evaluate potential fraud in tax returns. 3. Develop a way to use state lead data to help evaluate tax returns for identity theft. 4. Use tax return data to find the refund amount associated with electronically filed tax returns that were rejected when computing revenues Cheap Rashaad Penny Jersey , leave out rejected returns that don鈥檛 claim a refund, and account for tax returns with multiple reasons for rejection. 5. Review revenues to ensure that duplicate tax returns are omitted. 6. Tax returns with mismatched income because of amended or duplicate income documents should not be considered for potential identity theft.
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