The Treasury Inspector General for Tax Administration issued a report on identity theft and tax refund fraud. While detection of identity theft has improved through expanded identity theft filters and account locks, identity theft still results in billions of dollars in potentially fraudulent tax refunds each year. The IRS is taking additional actions to address identity theft such as clustering returns, developing leads from the Identity Theft Clearinghouse, and expanding cooperation with law enforcement. However, more remains to be done to prevent the issuance of billions of dollars in fraudulent refunds resulting from identity theft.
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TIGTA Report on Identity Theft Tax Fraud
1. TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
Detection Has Improved; However,
Identity Theft Continues to Result in
Billions of Dollars in Potentially
Fraudulent Tax Refunds
Phone Number | 202-622-6500
E-mail Address | TIGTACommunications@tigta.treas.gov
Website
| http://www.treasury.gov/tigta
3. DEPARTMENT OF THE TREASURY
WASHINGTON, D.C. 20220
TREASURY INSPECTOR GENERAL
FOR TAX ADMINISTRATION
4. Detection Has Improved; However, Identity Theft
Continues to Result in Billions of Dollars in
Potentially Fraudulent Tax Refunds
Table of Contents
Background
Results of Review
Appendices
5. Detection Has Improved; However, Identity Theft
Continues to Result in Billions of Dollars in
Potentially Fraudulent Tax Refunds
Abbreviations
6. Detection Has Improved; However, Identity Theft
Continues to Result in Billions of Dollars in
Potentially Fraudulent Tax Refunds
Background
7. Detection Has Improved; However, Identity Theft
Continues to Result in Billions of Dollars in
Potentially Fraudulent Tax Refunds
8. Detection Has Improved; However, Identity Theft
Continues to Result in Billions of Dollars in
Potentially Fraudulent Tax Refunds
Results of Review
9. Detection Has Improved; However, Identity Theft
Continues to Result in Billions of Dollars in
Potentially Fraudulent Tax Refunds
Expanding identity theft filters.
Expanding account locks.
Developing a process to cluster tax returns with the same address and/or direct deposit
account numbers.
10. Detection Has Improved; However, Identity Theft
Continues to Result in Billions of Dollars in
Potentially Fraudulent Tax Refunds
Developing leads from its Identity Theft Clearinghouse.
Expanding cooperation with local law enforcement.
11. Detection Has Improved; However, Identity Theft
Continues to Result in Billions of Dollars in
Potentially Fraudulent Tax Refunds
12. Detection Has Improved; However, Identity Theft
Continues to Result in Billions of Dollars in
Potentially Fraudulent Tax Refunds
13. Detection Has Improved; However, Identity Theft
Continues to Result in Billions of Dollars in
Potentially Fraudulent Tax Refunds
14. Detection Has Improved; However, Identity Theft
Continues to Result in Billions of Dollars in
Potentially Fraudulent Tax Refunds
15. Detection Has Improved; However, Identity Theft
Continues to Result in Billions of Dollars in
Potentially Fraudulent Tax Refunds
16. Detection Has Improved; However, Identity Theft
Continues to Result in Billions of Dollars in
Potentially Fraudulent Tax Refunds
17. Detection Has Improved; However, Identity Theft
Continues to Result in Billions of Dollars in
Potentially Fraudulent Tax Refunds
18. Detection Has Improved; However, Identity Theft
Continues to Result in Billions of Dollars in
Potentially Fraudulent Tax Refunds
19. Detection Has Improved; However, Identity Theft
Continues to Result in Billions of Dollars in
Potentially Fraudulent Tax Refunds
20. Detection Has Improved; However, Identity Theft
Continues to Result in Billions of Dollars in
Potentially Fraudulent Tax Refunds
21. Detection Has Improved; However, Identity Theft
Continues to Result in Billions of Dollars in
Potentially Fraudulent Tax Refunds
22. Detection Has Improved; However, Identity Theft
Continues to Result in Billions of Dollars in
Potentially Fraudulent Tax Refunds
23. Detection Has Improved; However, Identity Theft
Continues to Result in Billions of Dollars in
Potentially Fraudulent Tax Refunds
24. Detection Has Improved; However, Identity Theft
Continues to Result in Billions of Dollars in
Potentially Fraudulent Tax Refunds
25. Detection Has Improved; However, Identity Theft
Continues to Result in Billions of Dollars in
Potentially Fraudulent Tax Refunds
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26. Detection Has Improved; However, Identity Theft
Continues to Result in Billions of Dollars in
Potentially Fraudulent Tax Refunds
27. Detection Has Improved; However, Identity Theft
Continues to Result in Billions of Dollars in
Potentially Fraudulent Tax Refunds
Detailed Objective, Scope, and Methodology
28. Detection Has Improved; However, Identity Theft
Continues to Result in Billions of Dollars in
Potentially Fraudulent Tax Refunds
29. Detection Has Improved; However, Identity Theft
Continues to Result in Billions of Dollars in
Potentially Fraudulent Tax Refunds
30. Detection Has Improved; However, Identity Theft
Continues to Result in Billions of Dollars in
Potentially Fraudulent Tax Refunds
Major Contributors to This Report
31. Detection Has Improved; However, Identity Theft
Continues to Result in Billions of Dollars in
Potentially Fraudulent Tax Refunds
Report Distribution List
32. Detection Has Improved; However, Identity Theft
Continues to Result in Billions of Dollars in
Potentially Fraudulent Tax Refunds
Outcome Measures
33. Detection Has Improved; However, Identity Theft
Continues to Result in Billions of Dollars in
Potentially Fraudulent Tax Refunds
34. Detection Has Improved; However, Identity Theft
Continues to Result in Billions of Dollars in
Potentially Fraudulent Tax Refunds
Glossary of Terms
Term
Definition
35. Detection Has Improved; However, Identity Theft
Continues to Result in Billions of Dollars in
Potentially Fraudulent Tax Refunds
Term
Definition
36. Detection Has Improved; However, Identity Theft
Continues to Result in Billions of Dollars in
Potentially Fraudulent Tax Refunds
Management’s Response to the Draft Report
37. Detection Has Improved; However, Identity Theft
Continues to Result in Billions of Dollars in
Potentially Fraudulent Tax Refunds
38. Detection Has Improved; However, Identity Theft
Continues to Result in Billions of Dollars in
Potentially Fraudulent Tax Refunds
39. Detection Has Improved; However, Identity Theft
Continues to Result in Billions of Dollars in
Potentially Fraudulent Tax Refunds