Tax Cheats On the Rise
To be sure, few of us like handing over our hard-earned dollars to Uncle Sam. What’s more, greater numbers are finding ways to avoid doing so. Mid-way through the current tax filing season, the Treasury Inspector General for Tax Administration took a look at how things were going. Among their findings:
As of March 4, 2011, the IRS had identified 335,341 tax returns with $1.9 billion being claimed in fraudulent refunds. This is a jump of 181 percent compared to this time as of a year ago. (It should be noted that the agency was able to prevent the issuance of $1.8 billion, or 97 percent, of the fraudulent refunds.)
These numbers continue a trend that’s been going on for several years. When looking at the entire tax season, the number of fraudulent returns more than doubled between 2008 and 2010, rising from 380,656 to 971,711.
On the bright side, the accuracy of the assistance provided at the IRS’ Taxpayer Assistance Centers, where taxpayers can get their questions answered, has steadily risen. Auditors visit the Centers, posing as taxpayers and asking questions. The accuracy of information provided in response to questions of tax law rose from 69 to 81 percent between 2008 and 2010.
These visits eventually may become obsolete, given the growth in the volume of taxpayers using the tools available on the IRS’ website. As of March 5, 2011, visits to www.irs.gov had jumped by about one-third between 2008 (through early March) and 2011, to 119.8 million.
And, e-filing continues to grow. Through early March, about 90 percent of the 60.5 million returns received in 2011 were filed electronically, up four percent from the same period in 2010.
Finally, at a least few souls appear to have faith – the growing deficit and wrangling over the debt ceiling notwithstanding – that the U.S. government will make good on its promises. Through March 4, 2011, more than 16,000 taxpayers decided to receive part of their refunds in U.S. Series I Savings Bonds, up 19 percent from the same period a year earlier.
TIGTA’s report is available here








