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Improvements Are Needed to Identify Potentially Fraudulent Individual International Tax Returns During Processing

Report Information

Date Issued
Report Number
2021-40-057
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
$86,289,755

Recommendations

The Commissioner, Wage and Investment Division, should develop prerefund processes to identify and address Form 1040NR refund claims in which the ************************** reported on the return is not supported by **************************.

The Commissioner, Wage and Investment Division, should review the 6,731 Forms 1040NR refunds we identified in which the **************************** on the tax return was not supported by ************************** ************* and take actions to recover erroneous refunds.

The Commissioner, Wage and Investment Division, should develop at-filing processes to identify and address Additional Child Tax Credit claims on Forms 1040-PR and 1040-SS in which ************* reported on the tax return is ************* **************************.

The Commissioner, Wage and Investment Division, should review the 1,368 Forms 1040-PR and 1040-SS we identified in which the ************* reported on the tax return for the purposes of claiming the Additional Child Tax Credit is not supported ************************** and take actions to recover erroneous credits.

The Commissioner, Wage and Investment Division, should develop prerefund processes to systemically identify and address potentially erroneous Addiitonal Child Tax Credit claimed on international refund tax returns in which ****** on the return ************************************************.