Currently IRS and the Federal Government are loosing as much $100 million or more a year from payment of fraudulently filed electronic returns. The problem seems to be that in an effort to quickly process the return, IRS pays any refund due before they compare it with any information they have available. Often paying someone who is not even the legitimate taxpayer. Recommend that IRS adjust their system so at the very least they compare all electronic returns to the previous year's return to identify red flags such as new address, significant difference in pay, different type of return, etc. These simple changes in how IRS processes electronically filed returns would help weed out the millions of dollars in fraudulent returns filed early in the tax season each year and save the legitimate taxpayers much anguish.
Idea No. 195