Back to top

Blog

Click here to go back

Bogus Taxpayer IDs

Posted by McDonald & Osborne Posted on Oct 12 2015

The Treasury Inspector General for Tax Administration (TIGTA) released a report that does not bode well for the Internal Revenue Service. According to the report , “the IRS has recently issued thousands of tax identification numbers to ineligible people and, in some cases, IRS managers condoned the practice.” In response, the IRS released a statement vowing to review the problem and make necessary changes ahead of next year’s filing season.

ID numbers are typically issued to U.S. workers who are not citizens and do not have a Social Security number. “The IRS in 2011 processed more than 2.9 million tax returns with tax ID numbers and not Social Security numbers,” stated the TIGTA, “resulting in $6.8 billion of tax refunds.” The report also concluded that $4.2 billion in refundable tax credits were received by individuals not authorized to work in the United States.

For more details see Reuters article, “ U.S. IRS Allowed Bogus Taxpayer IDs – Watchdog Report .”

Stephen Osborne
Accountant
sosborne@mo-cpa.com

Photo Credit: BigStockPhoto.com