government icon, source: Eyewire

General Government: Tax Fraud and Noncompliance

The Internal Revenue Service should fully assess the benefits and costs of using its existing authority to hold additional taxpayer refunds as well as extending the date for releasing those refunds until it can verify wage information on most returns later in the filing season, which could protect millions of dollars annually.

Action:

The Acting Commissioner of Internal Revenue should develop an evaluation plan to fully assess the benefits and costs, including taxpayer burden, of modifying the February 15 refund hold, and determine how this effort informs IRS's overall compliance strategy for refundable tax credits and fraud risk management. 

Progress:

Pending

Implementing Entity:

Internal Revenue Service

Action:

Based on the benefits and costs assessment in Action 1, the Acting Commissioner of Internal Revenue should use IRS's existing authority to modify the refund hold such that it minimizes the risk of releasing fraudulent or noncompliant refunds. 

Progress:

Pending

Implementing Entity:

Internal Revenue Service