Some Tax Returns Selected for Fraud Screening Did Not Have Refunds Held and Required Notifications Were Not Always Sent to Taxpayers

The Commissioner, Wage and Investment Division, should develop processes to hold refunds associated with identified first-time filers of potentially fraudulent tax returns.

The Commissioner, Wage and Investment Division, should develop processes to ensure that the refund hold marker is placed on tax accounts for Taxpayer Identification Number mismatches between potentially fraudulent tax returns and Master File accounts to prevent refunds from being erroneously released while under IVO review.