TIGTA carried out an audit to find out how efficient the IRS is at detecting and stopping identification theft. The watchdog additionally checked out how the IRS is measuring undetected identification theft and coordinating identification theft data with different businesses and tax companions. TIGTA recognized 568,329 undetected probably bogus tax returns with refunds totaling greater than $1.6 billion for tax 12 months 2013. That is a drop of greater than $523 million from the prior 12 months, the report states. Nevertheless, the false reporting of wages and withholding accounts for the biggest quantity of undetected probably fraudulent refunds at $1.three billion. TIGTA believes the brand new Jan. 31 deadline for employers to file their W-2 varieties with the Social Safety Administration will cut back this sort of fraudulent return. The brand new Jan. 31 submitting deadline additionally applies to sure Kinds 1099-MISC reporting nonemployee compensation, corresponding to funds to unbiased contractors. TIGTA additionally famous that utilizing states’ lead information throughout tax return processing might enhance detection of identification theft.
TIGTA additionally found that the accuracy of the Identification Theft Taxonomy quantification for each protected and unprotected income wants enchancment. For instance, the IRS’s estimate of protected income was overstated by nearly $2.four billion on account of the flawed calculation of refunds related to rejected electronically filed tax returns. The audit resulted within the following six suggestions, which the IRS agreed with: Broaden the usage of identification theft fashions to incorporate all accelerated W-2s to match with tax returns for attainable identification theft. Develop standards to establish and consider potential fraud in tax returns. Develop a manner to make use of state lead information to assist consider tax returns for identification theft. Use tax return information to seek out the refund quantity related to electronically filed tax returns that had been rejected when computing revenues, pass over rejected returns that do not declare a refund, and account for tax returns with a number of causes for rejection. Overview revenues to make sure that duplicate tax returns are omitted. Tax returns with mismatched earnings due to amended or duplicate earnings paperwork shouldn’t be thought-about for potential identification theft. The Southbourne Tax Group is a complete-package Accounting & Tax firm. We offer a big selection of small enterprise accounting providers, together with tax providers for companies and people. Our providers additionally embody outsourced CFO assist, bookkeeping assist, native and distant service, payroll processing, QuickBooks assist and plenty of extra! Our charges are cheap and also you get pleasant service from our skilled employees. Our insurance policies and procedures authorize Companions of the Agency for session on substantial technical, moral and industry-wide points and are additionally designed to establish that clients obtain the very best monetary providers out there wherever. The best public curiosity is all the time on the high of our thoughts. You possibly can relaxation assured that our Companions and Employees Members can pinpoint and deal with all important points we encounter. Our group is taken into account one of many foremost firms within the locality. By integrating our experiences, experience and the inventive talents of our employees, every buyer advantages from the skilled and private consideration they supply. Our firm’s wonderful requirements, service and specialist employees will make the distinction between our unparalleled efficiency and that of different firms. We guarantee each buyer of being offered the professional service of our whole firm.