The Southbourne Tax Group – IRS Making Strides in Detecting Fraudulent Tax Returns
TIGTA carried out an audit to find out how efficient the IRS is at detecting and stopping identification theft. The watchdog additionally checked out how the IRS is measuring undetected identification theft and coordinating identification theft info with different businesses and tax companions. TIGTA recognized 568,329 undetected probably bogus tax returns with refunds totaling greater than $1.6 billion for tax yr 2013. That is a drop of greater than $523 million from the prior yr, the report states. Nonetheless, the false reporting of wages and withholding accounts for the most important quantity of undetected probably fraudulent refunds at $1.three billion. TIGTA believes the brand new Jan. 31 deadline for employers to file their W-2 kinds with the Social Safety Administration will cut back one of these fraudulent return. The brand new Jan. 31 submitting deadline additionally applies to sure Kinds 1099-MISC reporting nonemployee compensation, similar to funds to unbiased contractors. TIGTA additionally famous that utilizing states’ lead knowledge throughout tax return processing might enhance detection of identification theft. TIGTA additionally found that the accuracy of the Id Theft Taxonomy quantification for each protected and unprotected income wants enchancment. For example, the IRS’s estimate of protected income was overstated by virtually $2.four billion because of the improper calculation of refunds related to rejected electronically filed tax returns. The audit resulted within the following six suggestions, which the IRS agreed with: Increase the usage of identification theft fashions to incorporate all accelerated W-2s to match with tax returns for attainable identification theft. Develop standards to determine and consider potential fraud in tax returns. Develop a approach to make use of state lead knowledge to assist consider tax returns for identification theft. Use tax return knowledge to seek out the refund quantity related to electronically filed tax returns that have been rejected when computing revenues, omit rejected returns that do not declare a refund, and account for tax returns with a number of causes for rejection. Overview revenues to make sure that duplicate tax returns are omitted. Tax returns with mismatched earnings due to amended or duplicate earnings paperwork shouldn’t be thought of for potential identification theft. The Southbourne Tax Group is a complete-package Accounting & Tax firm. We offer a big selection of small enterprise accounting companies, together with tax companies for companies and people. Our companies additionally embody outsourced CFO help, bookkeeping help, native and distant service, payroll processing, QuickBooks help and plenty of extra! Our charges are affordable and also you get pleasant service from our skilled workers. Our insurance policies and procedures authorize Companions of the Agency for session on substantial technical, moral and industry-wide points and are additionally designed to establish that clients obtain the perfect monetary companies out there anyplace. The best public curiosity is all the time on the prime of our thoughts. You may relaxation assured that our Companions and Employees Members can pinpoint and deal with all important points we encounter. Our group is taken into account one of many foremost corporations within the locality. By integrating our experiences, experience and the inventive talents of our workers, every buyer advantages from the skilled and private consideration they supply. Our firm’s glorious requirements, service and specialist workers will make the distinction between our unparalleled efficiency and that of different corporations. We guarantee each buyer of being supplied the skilled service of our whole firm.