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IRS Possibly Issues $1 Billion Worth Of Bogus Refunds
The sad state of the IRS’s computer networks has been documented in government reports for years. Now, as the federal government’s deficit balloons past $1 trillion, the notion that the agency’s poor data collection practices may have generated $1 billion in bogus refunds is downright shocking.
Yet, that’s exactly what the Treasury Inspector General for Tax Administration (TIGTA) claimed in a report released yesterday. The TIGTA argues that the IRS could make “better use” of third-party data to “identify and prevent more than $1 billion in potentially erroneous refunds.” Almost as mind-blowing are revelations that the IRS does not have a “central control point” for third-party data collection and lacks standards for validating data used to double-check the information that taxpayers report on their tax returns, such as Social Security numbers. For the 2006 tax year, the IRS received almost 1.8 billion documents from sources such as banks and government agencies.
Read more: http://247wallst.com/2010/09/2.....s-refunds/