The IRS has measures in place to try to detect fraudulent returns by individuals, as well as businesses. Although the IRS has paid out millions in fraudulent refunds, the IRS reported it has protected nearly $3.8 billion in fraudulent refund claims since 2016. The Treasury Inspector General for Tax Administration (TIGTA) issued a report recently due to the ever-changing identity theft patterns requiring adaptation and detection by the IRS in order to prevent such fraud.
TIGTA found that the IRS is continuing to improve and expand its detection capabilities, including business identity theft, but that more work is need to combat business identity theft in particular. To read the complete report, click here.
