IRS Reorganization Weakens Refund Fraud Detection
Tuesday, January 19, 2010

In an attempt to make operations more efficient, the IRS has turned responsibility for detecting fraudulent tax refund claims over to an office filled with inexperienced employees. A report by the Treasury Department’s Inspector General of Tax Administration concluded that the October 2009 move, which entailed shifting review of questionable refunds from the IRS’s Criminal Investigation Division to the Accounts Management function of its Wage and Investment Division, resulted in inadequate staffing to cope with the hundreds of thousands of fraudulent refund claims. The inspector general found that of the 359 employees who will work in the Questionable Refund Program, 222 will be brand new to the program.
-Noel Brinkerhoff
Insufficient and Inexperienced Staff Could Reduce the Ability to Detect and Stop Fraudulent Refunds (Treasury Inspector General for Tax Administration) (pdf)
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