How the IRS failed to stop $200M in bogus refunds
Looks like last year, was the year to lie to the IRS:
As the peak of the 2006 tax season approached last spring, the IRS discovered that a planned upgrade of the agency computer that red-flags potentially fraudulent tax refunds had failed. The discovery came after the IRS had shut down the older computer. The failure forced the agency to continue processing 2006 tax season returns — and issuing refunds — without its first line of electronic defense against fraud.
USA TODAY’s review found that the IRS lacks a comprehensive plan to recover the $200 million, which the agency said represents far less than 1% of all 2006 tax season refunds. That means most fraudulent filers who got federal checks in 2006 will likely never be caught.
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