The Treasury Inspector General for Tax Administration in 2012 conducted an “audit based on information forwarded to us by a U.S. Representative and a U.S. Senator. The information forwarded were complaints by two Internal Revenue Service (IRS) employees alleging that IRS management was requiring employees to assign Individual Taxpayer Identification Numbers (ITIN) even when the applications were fraudulent.”
The audit report titled “Substantial Changes Are Needed to the Individual Taxpayer Identification Number Program to Detect Fraudulent Applications” found in part:
- IRS management is not concerned with addressing fraudulent applications in the ITIN Operations Department because of the job security that the large inventory of applications to process provides.
- Management is interested only in the volume of applications that can be processed, regardless of whether they are fraudulent.
- IRS management has indicated that no function of the IRS, including Criminal Investigation and the Accounts Management Taxpayer Assurance Program, is interested in dealing with ITIN application fraud.
- In the meantime, there is a potential that erroneous tax refunds are going to non qualifying individuals, allowing them to defraud the Federal Government of billions of dollars.
According to the report, “Some of the deficiencies we raise in our report have been brought to management’s attention long ago. Some were raised in a September 2002 report issued by an IRS-initiated Task Force. However, management has failed to take sufficient action to address those deficiencies.”
The Blaze reports, “The IRS sent more than $46 million in tax refunds to 23,994 “unauthorized” alien workers who all listed the same address in Atlanta, Ga., in 2011, according to an audit report by the Treasury Inspector General for Tax Administration (TIGTA). However, the Atlanta address that received millions of dollars in refunds was not the only address apparently housing thousands of “unauthorized” aliens. In fact, it wasn’t even the only address in Atlanta that was claiming such a situation.”
CNSNews.com breaks down the report:
The IRS sent 11,284 refunds worth a combined $2,164,976 to unauthorized alien workers at a second Atlanta address; 3,608 worth $2,691,448 to a third; and 2,386 worth $1,232,943 to a fourth.
Other locations on the IG’s Top Ten list for singular addresses that were theoretically used simultaneously by thousands of unauthorized alien workers, included an address in Oxnard, Calif, where the IRS sent 2,507 refunds worth $10,395,874; an address in Raleigh, North Carolina, where the IRS sent 2,408 refunds worth $7,284,212; an address in Phoenix, Ariz., where the IRS sent 2,047 refunds worth $5,558,608; an address in Palm Beach Gardens, Fla., where the IRS sent 1,972 refunds worth $2,256,302; an address in San Jose, Calif., where the IRS sent 1,942 refunds worth $5,091,027; and an address in Arvin, Calif., where the IRS sent 1,846 refunds worth $3,298,877.
Illegal refunds to illegal aliens to insure job security. Senator Rand Paul raise this concern when he alluded to a “culture of corruption” where IRS union employees are using their positions to target those against big government so they can keep their jobs. This report appears to provides credence to Senator Paul’s statement.