IRS lost $4 Billion

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    Nov 11, 2013 6:46 AM GMT

    DC"The IRS, which is now overseeing Obamacare’s complicated implementation and collecting its tax penalties, sent 343 tax refunds to a single address in Shanghai, and another 655 tax refunds one in Lithuania, according to CBS News.

    Also, this is improvement?!

    WSJ"The IRS issued potentially fraudulent refunds of almost $3.6 billion for tax year 2011 for the most common type of ripoff, the Treasury Inspector General for Tax Administration said after a review that identified more than one million suspicious returns. That’s down $1.6 billion from the $5.2 billion in potentially fraudulent refunds reported in tax year 2010"

    Well, actually worse than last year, but better compared to 2010... Still not exactly pocket change...icon_rolleyes.gif
  • Menergy_1

    Posts: 748

    Nov 11, 2013 2:32 PM GMT
    I unfortunately was one of those in 2013 whose 2012 return was halted by IRS (luckily) since someone had filed electronically and early using my name and SSAN. IRS didn't pay it out, caught it due to suspicious/flagged information on the fraudulent return, but I've had to file through the Taxpayer Protection division.

    I don't think IRS staff in separate divisions of the agency are to blame for checking on the validity of "tea party" political organizations' applications for 501(c) (3) or (4) tax-exempt status. That's in their job description to review ALL applications for qualifications for tax exemption, folks. Those categories of organizations are NOT to have their primary function be political action. How you going to verify that if you don't check on their activities before granting exemptions? They also checked "Democratic" affiliated applications for tax exemption. IRS did not deny any tea-party applications, so I have read in the press. IRS DID deny a democratic/progressive organization's application however, after reviewing the information contained about activities of the organization.

    Another separate division for fraud detection on returns (different staff) is set up to attempt to detect fraudulent tax returns for refunds, especially those filed electronically and asking for electronic refunds to debit card accounts. Luckily (in a way, despite the extra mental toll on me...and delayed filing and hopefully a full refund as filed on my authentic return) the IRS is catching those several billion $ in false refund claims - I wish they could be more successful still and not have the other 15 billion/year loss to fraud.

    Yes, the IRS face is red icon_redface.gif in the meantime. I hope for even more diligence and improvements.