New IRS data filters caught $4.1 billion in suspected tax fraud

The IRS added 23 new data elements to its tax return computer system filters this past tax season. The objective of these enhanced features was to locate instances of identity-theft related tax fraud. These efforts are being made to protect taxpayers from identity theft and prevent fraudulent tax returns from being filed.

As of March 25, 2016, the IRS filters identified approximately $4.1 billion in suspected identity theft tax fraud. Of that amount, $72 million (21,000 tax returns) can be attributed to the three new data elements. The new data elements also prevented 24,000 taxpayer returns from being incorrectly flagged for fraud.

An official report was conducted by the Treasury Inspector General for Tax Administration (TIGTA). In this report, the TIGTA recommends that the IRS remove the three new data elements that resulted in fraudulent activity so inappropriate use cannot continue to occur. TIGTA also recommended that the IRS conduct a thorough audit of its public website and publications and implement a secure process for those who need it to access certain information, such as developers of tax software.

The IRS plans to keep the three removed data elements confidential. The TIGTA agreed with this position to limit public exposure and helped to eliminate the data from the IRS's website and public documents.

It is important to remember that the new IRS data filters identified alleged instances of identity theft tax fraud. Those who are accused of such offenses are innocent until proven guilty and should seek advice and counsel from an attorney who is experienced with tax crimes.

No Comments

Leave a comment
Comment Information

Contact Kundra and Associates Today

Please call our offices at 301-424-7585 or fill out the form below to arrange a confidential consultation.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Email Our Attorneys

Rockville Office
110 North Washington Street
Suite 406
Rockville, MD 20850

Phone: 301-424-7585
Fax: 301-424-7047
Rockville Law Office Map

Washington, D.C. Office
1025 Connecticut Avenue NW
Suite 1000
Washington, DC 20036

Phone: 301-424-7585
Fax: 301-424-7047
Map & Directions

Mumbai, India
C/o Anmol Sekhir Consultants Pvt. Ltd.
Chartered Accountants
3rd Floor, Sahakar Bazar
Opposite Railway Station
Bandra (West), Mumbai, India 400-050

Map & Directions