Preventing the Issuance of Fraudulent Refunds

According to Deputy Commissioner Steven Miller, the IRS has identified and is reviewing almost two million tax returns for possible fraud. A primary cause of the fraud is identity theft. In 2011, the IRS prevented the issuance of close to $14 billionin fraudulent refunds, and the agency has new filters and even more staff this year to help prevent the issuance of fraudulent refunds.

Identity theft can occur at schools, hospitals, and doctor’s offices. Additionally, many identify thefts are committed by incarcerated individuals. Senator Bill Nelson, a Florida Democrat, has introduced legislation that would create tougher penalties and make it more difficult to gain access to Social Security numbers of deceased individuals. 

See Richard Rubin, IRS Flags Almost 2 Million Tax Returns in Anti-Fraud Efforts, Bloomberg, Mar. 20, 2012.

Special thanks to David S. Luber (Attorney at law, Florida Probate Attorney Wills and Estates Law Firm) for bringing this article to my attention.