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E-Filing and the Explosion in Tax-Return Fraud | 199 comments | Create New Account
Comments belong to whoever posts them. Please notify us of inappropriate comments.
E-Filing and the Explosion in Tax-Return Fraud
Authored by: Anonymous on Tuesday, January 15 2013 @ 09:43 PM EST
The WSJ article pointed out two types of theft.
Treasury is losing billions to fraudulent tax refunds, not stolen electronic refunds.
Article made clear that IRS will replace stolen electronic refunds only if bank
that received the stolen refund reimburses IRS.

In your original post you listed 4 checks the IRS could use to avoid stolen refunds.
The last three would be fairly simple for IRS to implement. If they aren't, then
we're looking at a bureaucratic behemoth that can't solve problems efficiently.

Article also pointed out IRS has huge backlog of fraudulent refunds. They're putting
limited resources into it. Possibly they view likelihood of recovery is slim?

The longer IRS waits to take action, the more unlikely they'll recover.
Joe Blow taxpayer with a house and kids doesn't file a totally fraudulent tax return.
A professional thief does and isn't going to leave a lot of fingerprints.

Or possibly the value of "money" has become so distorted?
Fed takes in 2 trillion in tax revenue annually. How big a deal is a 5 billion loss?

[ Reply to This | Parent | # ]

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