{"database": "press", "table": "releases", "rows": [["https://web.archive.org/web/20140926001535/http://www.collins.senate.gov/public/index.cfm/press-releases?ContentRecord_id=a6a11ebe-f575-4ea9-a91a-c4163ec334d4", "GAO: Action Needed to Combat $5 Billion Tax Refund Fraud", "2014-09-22", "2014", "2014-09", "Republican", "House", "ME", "Susan Collins", "C001035", "web.archive.org", null, null, "legacy", "WASHINGTON, D.C. \u2013 The Internal Revenue Service (IRS) must take bold and innovative action to combat more than $5 billion in fraudulent identity theft tax refunds, according to a new report by the Government Accountability Office (GAO). The report, requested by Senator Susan Collins and other leaders of the Senate Finance and Aging Committees as well as the House Ways and Means Committee, finds that the IRS should take additional steps to strengthen its pre-refund and anti-fraud efforts to effectively\u00a0stop tax refund fraud before it even starts.\n  \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \"Despite efforts to prevent tax refunds from being paid to con artists who have stolen the identities of taxpayers, the IRS paid $5.2 billion in refunds based on fraudulent tax returns in 2013,\u201d said U.S. Senator Susan Collins (R-Maine), Ranking Member of the Senate Aging Committee. \u201cThese fraudulent tax refund payments waste taxpayer dollars and jeopardize the legitimate refunds of taxpayers.\u00a0 The IRS must do more to prevent fraudulent tax refunds from being paid to fraudsters rather than to their rightful claimant.\"\n\u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u201cThe American people should be able to trust the IRS to protect their identities, preserve their privacy, and ensure their hard-earned money isn\u2019t being carelessly flushed down the drain.\u00a0 Sadly, that\u2019s not the case,\u201d said Finance Committee Ranking Member Orrin Hatch (R-Utah). \u201cAs the GAO made clear today, there is more that can be done to improve the agency\u2019s anti-fraud capabilities. Moving forward, I hope the IRS will take a serious look at these recommendations and work with Congress to implement smart safeguards that not only better serve the victims of identity theft refund fraud but, ultimately, stop it before it even starts.\u201d\n   \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u201cBy the time IRS matches all of the payroll information it collects with the tax returns it receives, billions of dollars in fraudulent refunds have already been sent out the door.\u00a0 This is a serious and unacceptable issue that must be addressed now,\u201d said Finance Committee Chairman Ron Wyden (D-Ore.). \u201cThis GAO report is an important step forward as it makes a number of important recommendations for verifying that taxpayers are getting the refunds they deserve and that the fraudsters don\u2019t get them instead.\u00a0 \u00a0I\u2019m working closely with my colleagues here in the Congress and with the IRS to fight this serious and growing problem that hurts both citizens and the integrity of our tax administration.\u201d \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u201cThis problem isn\u2019t going away, unless we go hard after these criminals while also doing what we can to prevent this crime,\" said U.S. Sen. Bill Nelson (D-FL), chairman of the Aging Committee and a proponent of various initiatives to curb ID theft and tax fraud. \"Too many Americans already have paid a high price, especially those unfortunate enough to have fallen victim to identity theft. \u00a0Many of them sometimes end up waiting years just to get their own tax refund. \u00a0The time has come for Congress to act.\u201d \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u201cThe IRS is not doing enough to protect Americans from the terrible crime of identity theft and fraud,\u201d said House Ways and Means Committee Chairman Dave Camp (R-MI).\u00a0 \u201cIn one case, the IRS received over 2,000 returns from a single address \u2013 paying out over $3.3 million in refunds.\u00a0 That is not just a simple error, that is clear mismanagement.\u00a0 IRS must ensure that all is being done to stop detect fraudulent payments, protect hard-earned taxpayer dollars, and stop the crime of tax fraud.\u201d \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Identity theft (IDT) refund fraud occurs when a fraudster files a false tax return using a stolen Social Security number and other personal information and receives a tax refund from the IRS.\u00a0 The IRS estimates that in 2013, it paid $5.2 billion in fraudulent IDT refunds.\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 GAO and the IRS both agree that this large problem is an evolving threat as fraudsters are adapting to additional controls the IRS has implemented to combat IDT refund fraud.\u00a0 Fraudsters are able to take advantage of the IRS\u2019 \u201clook-back\u201d compliance efforts, in which the IRS issues tax-refunds before completing all compliance checks.\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 GAO recommends that the IRS take additional actions to enhance its pre-refund anti-fraud efforts, as preventing fraud is more effective than \u201cclaw-back\u201d recovery efforts. Key findings from the GAO report follow and a full copy of the report can be found HERE: \u00a7\u00a0 Bold Action Needed: According to the GAO report, \u201cIRS estimates it issued at least $5.2 billion in fraudulent IDT refunds in filing season 2013.\u00a0 Given the size and scope of IDT refund fraud, additional bold and innovative steps are needed from Congress and IRS. ... Given the billions in dollars of successful IDT refund fraud, IRS must strive to stay one or more steps ahead of identity thieves, or the risk of issuing fraudulent IDT refunds could grow.\u201d \u00a7\u00a0 Electronic W-2 Filing Threshold Change: According to the GAO report, \u201cCongress should consider providing the Secretary of the Treasury with the regulatory authority to lower the threshold for electronic filing of W-2s from 250 returns annually to between 5 to 10 returns, as appropriate. ... Cost savings and the ancillary benefits they provide in supporting IRS\u2019s efforts to conduct more pre-refund matching, a change in the e-filing threshold is warranted.\u201d \u00a7\u00a0 Moving W-2 Filing Deadlines to Earlier in the Year: According to the GAO, \u201cThe Department of the Treasury proposed that Congress accelerate W-2 [submission] deadlines to January 31. ... Accelerating the W-2 deadline to January 31 \u2013 as proposed by Treasury \u2013 would provide a powerful tool for IRS to detect and prevent IDT refund fraud. ... IRS should fully access the costs and benefits of shifting W-2 deadlines.\u201d   \u00a0   \u00a0\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 In May 2013, Senators Collins and Nelson held a hearing to investigate the issue of identity theft refund fraud.\u00a0 View that hearing here:   http://www.aging.senate.gov/hearings/tax-related-identity-theft-an-epidemic-facing-seniors-and-taxpayers   \u00a0\n###", 1, "2026-03-30T12:14:52Z", "2026-03-30T12:14:52Z"]], "columns": ["url", "title", "date", "year", "month", "party", "chamber", "state", "member_name", "bioguide_id", "domain", "scraper", "source", "date_source", "text", "has_text", "collected_at", "updated_at"], "primary_keys": ["url"], "primary_key_values": ["https://web.archive.org/web/20140926001535/http://www.collins.senate.gov/public/index.cfm/press-releases?ContentRecord_id=a6a11ebe-f575-4ea9-a91a-c4163ec334d4"], "units": {}, "query_ms": 1.1219237931072712, "source": "dwillis/congress-press", "source_url": "https://github.com/dwillis/congress-press", "license": "MIT", "license_url": "https://github.com/dwillis/congress-press/blob/main/LICENSE"}