GENEVA, SWITZERLAND – The IRS, tax arm of the US government, faces serious challenges, the annual report by its Oversight Board, published 5 June, says. “Of great concern to the Board are decreased resources to fund tax administration, coupled with growing complexity in the tax system. ‘The Board cannot predict that a breaking point will occur, but a continuation of current trends increases the risk that the IRS will experience serious problems in the future,’” says a statement issued by the board. Those challenges include identity fraud, says the Wall Street Journal in a feature on the report, with false claims for refunds jumping fourfold in two years, despite 40 staff added to deal with this issue alone.
“The IRS managed to stop $14.4 billion of fraudulent refunds in 2011, the report found, but that left about $1.8 billion that fell through the cracks and apparently made its way into the wrong hands,” reports the WSJ.