TIGTA: IRS Fails to Flag 1.2 Million Tax Returns Evidencing Identity Theft
From the TIGTA press release:
WASHINGTON – An estimated 1.2 million tax returns filed in 2007 reported wages earned by taxpayers who used another taxpayer’s Social Security Number, a sign of possible identity theft, according to a report publicly released today by the Treasury Inspector General for Tax Administration (TIGTA).
The Internal Revenue Service cannot currently identify identity theft cases when taxpayers file tax returns using an Individual Taxpayer Identification Number (ITIN) and use another person’s name and Social Security Number to work, the report found.
This can lead to all sorts of problems. Some are minor, like having an electronic filing rejected because somebody has already filed a return using your Social Security number, or that of one of your dependents. Some are much more serious, including having your tax payments credited to somebody else, and having somebody else’s tax problems end up in your account. But no doubt they will do an excellent job with their additional chores of regulating preparers and running the national health commissariat.
The whole TIGTA report is here. Peter Pappas has more.