The IRS is continuing to hone its filters to catch business identity
theft and tax fraud, using 84 selection filters last year to identify
business tax returns claiming refunds for potential fraud but not
always succeeding, according to a new report.
The report, released Monday by the Treasury Inspector General for Tax
Administration, found the filters identified and selected 60,296
business returns for further review as potentially fraudulent. It
comes as the IRS has been stepping up its efforts to encourage tax
professionals to be on the lookout for signs of data theft by identity
thieves (see story).
The federal government has also come under pressure from lawmakers in
Congress to do more to catch suspected fraudsters who profited from
the COVID-19 pandemic by taking advantage of relief programs like the
Paycheck Protection Programs, expanded unemployment insurance, and
refundable tax credits.