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Actions Are Needed to Reduce the Risk of Fraudulent Use of Employer Identification Numbers and to Improve the Effectiveness of the Application Process

Report Information

Date Issued
Report Number
2018-40-013
Report Type
Audit
Joint Report
Yes
Participating OIG
Treasury Inspector General for Tax Administration
Agency Wide
Yes (agency-wide)
Questioned Costs
$0
Funds for Better Use
$0
View Report

Recommendations

The Commissioner, Wage and Investment Division, should establish systemic processes for the Modernized EIN to alert system administrators when error code counts reach certain thresholds based on historical trends.

The Commissioner, Wage and Investment Division, should revise procedures to not allow applicants to designate another business as the responsible party.

The Commissioner, Wage and Investment Division, should update internal guidelines to require ***********2************** ****************2******************** to provide additional information on the application in order to receive an EIN.
Recommendation rejected by IRS

The Commissioner, Wage and Investment Division, should develop processes and procedures to ensure that tax examiners accurately process paper Forms SS-4. This should include additional employee training and performing additional management quality reviews.

The Commissioner, Wage and Investment Division, should update internal guidelines to include procedures for processing EIN applications associated with Form 1041 (special trusts) and requests for EINs from individuals who are minors.