Continued Refinement of the Return Review Program Identity Theft Detection Models Is Needed to Increase Detection

The Commissioner, Wage and Investment Division, should ensure that identity theft tax returns identified by the DDb and/or the EFDS are selected by the RRP prior to replacing the identity theft detection capabilities of these systems.

The Commissioner, Wage and Investment Division, should ensure that tax refund checks are reissued to all taxpayers, including the 113 that were identified during TIGTA's review, who subsequently changed their address in response to an undelivered paper refund check.

The Commissioner, Wage and Investment Division, should ensure that tax examiners reverse the fraudulent tax return data entries from the taxpayer's account and place an identity theft indicator on the taxpayer's account for an undelivered check when the taxpayer has not satisfactorily resolved the issue after 30 calendar days.

The Commissioner, Wage and Investment Division, should develop processes and procedures to place an identity theft indicator and remove the fraudulent tax return data for those taxpayer accounts for which a paper refund check is cancelled because it remains uncashed after 14 months.