False tax refunds cost IRS $17.5m

The Internal Revenue Service last year paid $16.3m in false tax refunds and economic stimulus payments totaling $1.2m.

The $17.5m (£11.8m) has been highlighted in a report by the Treasury department’s inspector general for tax administration (TIGTA), according to webcpa.com

The report assessed the effectiveness of the IRS's prevention of fraudulent refunds and economic stimulus payments.

J Russell George, inspector general of TIGTA, said: 'Although the amount of erroneously identified stimulus payments is small in relation to the total amount issued, TIGTA remains concerned that the existing controls pose a risk that false refunds and stimulus payments will be erroneously issued in the future.'

Further Reading:

Treasury department’s inspector general for tax administration report

IRS holds $1.3bn in unclaimed tax refunds

IRS accelerates refund process for SMEs