It’s estimated that tax fraud costs the U.S. government roughly $305 billion annually, or more than $3 trillion over the past decade. It’s one of the main reasons why our country’s deficit is so high, which is why the IRS has stepped up its efforts to combat this problem.
Earlier this month, the IRS announced that it had partnered with Intuit in response to a surge in identify theft and tax fraud. It’s not uncommon for criminals to file fake tax returns using the personal information of hard-working American citizens. But these citizens don’t receive the refund to which they are entitled. Instead, the money is sent to the criminal, whom cashes the check before going into hiding. This all-too-common tactic has become increasingly problematic as of late, with more and more phony tax returns popping up at the IRS office.
The partnership between the IRS and Intuit involves new steps to validate taxpayer information. In other words, the IRS and Intuit will implement additional measures to ensure the person filing the tax return is who they say there are. By validating taxpayers’ identity, it should reduce — but not completely stop — the number of the fraudulent tax returns being submitted to the IRS.
IRS Commission John Koskinen released a statement in regards to the partnership with Intuit, saying it signals a new era of cooperation between the IRS, states, and electronic tax industry that will help curb identify theft and tax fraud.
“This agreement represents a new era of cooperation and collaboration among the IRS, states, and the electronic tax industry that will help combat identity theft and protect taxpayers against tax-refund fraud,” IRS Commissioner John Koskinen said in a written statement. “We’ve made tremendous progress, and we will continue these efforts. Taxpayers filing their tax returns next filing season should have a safer and more secure experience.”
Do you think this partnership is a good idea? Let us know in the comments section below!