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Late Receipt of Wage Reporting Documents Reduces Fraud Detection Capabilities and Increases Taxpayer Burden

Report Information

Date Issued
Report Number
2018-40-025
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 ensure that the 1,033 tax returns TIGTA identified are controlled on the EFDS and sent for screening and/or verification. This should include identifying additional paper-filed tax returns that were selected as potentially fraudulent subsequent to April 22, 2017, to ensure that they are all controlled on the EFDS case management system.

The Commissioner, Wage and Investment Division, should develop a process to ensure that all potentially fraudulent tax returns identified by the RRP are tracked in the EFDS case management system for income and withholding verification.

The Commissioner, Wage and Investment Division, should confirm that the programming change made for PY 2018 ensures that the RRP produces a model score for all processed tax returns.

The Commissioner, Wage and Investment Division, should confirm that the programming change made for PY 2018 ensures that tax returns complete evaluation by all RRP rules before the tax returns are identified and selected as potentially fraudulent.