IRS May Lose $21 Billion in Identity Fraud, Study Says

Identity thieves are poised to claim $21 billion in fraudulent tax refunds over the next five years, according to a report by the inspector general who oversees the Internal Revenue Service.

The report released today documents the growth in tax fraud through identity theft and includes previously unreleased details of potentially fraudulent returns.

For example, the IRS sent more than $3.3 million in refunds to an address in Lansing, Michigan, that was listed on 2,137 separate tax returns. In at least 10 cases, the IRS sent more than 300 direct deposits of refunds totaling more than $470,000 to the same bank account.

http://www.bloomberg.com/news/2012-08-02/irs-may-lose-21-billion-in-identity-fraud-study-says.html