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.

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

2. HIGHLIGHTS
There Are Billions of Dollars in
Undetected Tax Refund Fraud Resulting From
Identity Theft

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