The Biggest Reason Fraudsters Run Rings around the IRS

IRS chases the wrong returns, delaying refunds, wasting resources.

By CPA Trendlines

Let’s have a pity party! You’re invited.

Let’s pity the Internal Revenue Service for having to identify fraudulent tax returns and taxpayer identities.

MORE: The Big Free-File Flop | The Demise of Schedule A? | Refunds Still Up, but Only by 0.7% | Survey: Busy Season Goes Sour | Tax Refunds Up 1.7% | Lessons Learned: How the Federal Shutdown Hit Busy Season 2019 | Tax Refund Fury Roils Busy Season | Taxpayer Advocate Slams Congress over Funding

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Let’s pity the taxpayer whose tax return gets flagged as fraudulent—or her stolen identity that doesn’t.

And let’s pity the tax preparer stuck between the legitimate taxpayer and the fumbling, under-funded, well-intentioned bureaucracy of the IRS. READ MORE →

1.6 Million Tax Clients Gone Missing?

Chart of tax filing data for the week ending Feb. 8, 2019
^ Tax filing data for the week ending Feb. 8, 2019

Opening days show accountants filed only 40% of IRS intake. Blame the shutdown.

By Beth Bellor
CPA Trendlines

The IRS might have rushed into action as soon as the government shutdown ended, but it still is feeling the effects as all filing statistics remain on the downside two weeks in.

MORE: BUSY SEASON: Accountants Worry for U.S. Economy | Tax Shops Bulk Up for Big Busy Season | BUSY SEASON: The Busiest Ever? | Survey: Tax Season Launches with a Whimper | 16 Big Questions for Tax Season | SURVEY: Tax Accountants Alarmed by TCJA & Shutdown

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As of the week ending Feb. 8 – the latest data available – the Internal Revenue Service had received 28.8 million returns, down 6.9 percent from the same week in 2018. It had processed 27 million returns, down 10.2 percent, for a processing rate of 93.8 percent.

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