Internal Revenue Service's Efforts Directed at Multiple False Filers

An investigation was conducted to determine the extent to which people are filing more than one tax return, getting illegal refunds from the Internal Revenue Service (IRS) and not being caught. In an assessment of the Questionable Refund Program, problems that were noted include the following: single return cases are not prosecuted as frequently as cases of multiple filers who file several returns; returns with the most fraud potential are not identified by the IRS computerized system; too many IRS employees are involved in detection of multiple filer schemes; the matching of W-2's is not thoroughly implemented; and most team members do not remain during the post-filing season. Coordination problems that exist between IRS and the Bureau of Prisons, the Social Security Administration, the Treasury Department, and the Postal Service need to be resolved. Prisoners account for 20 percent of the known fraudulent filers. Some of the positive features of the Questionable Refund Program are: each refund is checked many times before it is mailed out; the program is controlled by a multifunctional committee operating out of the national office; the program is evaluated each year; and multiple filer cases are processed quickly for prosecution.