Refunds Seen Postponed in IRS Quest to Stamp Out ID Theft
By Richard Rubin - Jan 29, 2013
Some taxpayers seeking a quick refund may have to wait longer than usual this year as the Internal Revenue Service tries to stop criminals who steal others’ identities and file fraudulent returns.
The agency, which begins accepting 2012 returns tomorrow, is making its automated system more sensitive to signs of potential fraud, meaning some returns will get a closer look. Last year, the IRS prevented $20 billion in fraudulent refunds from being issued, up from $14 billion the previous year.
The tax agency’s efforts to combat identity theft reflect the tension in the IRS’s multiple missions, said Benson Goldstein, a senior technical manager at the American Institute of Certified Public Accountants in Washington.
The IRS has been trying to shorten processing times to accelerate refunds, in part to encourage electronic filing and in part to reduce taxpayers’ reliance on short-term loans. The speed of refunds presented an opportunity for fraud.
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http://www.bloomberg.com/news/print/2013-01-29/refunds-seen-postponed-in-irs-quest-to-stamp-out-id-theft.html