Posted By LambChop
In 2011, the Internal Revenue Service sent $7,319,518 in tax refunds to 2,706 aliens who were not authorized to work inside the United States who used Taxpayer Identification Numbers (in other words - NO Social Security Numbers). The best part? They all used the same bank account, according to an audit report by the Treasury Inspector General for Tax Administration. The IG did not determine whether or not the bank account was located in the United States.
The fraud was discovered after two whistleblowers (IRS employees) went to members of Congress "alleging that IRS management was requiring employees to assign Individual Taxpayer Identification Numbers (ITIN) even when the applications were fraudulent.”
“TIGTA’s audit found that IRS management has not established adequate internal controls to detect and prevent the assignment of an ITIN to individuals submitting questionable applications,” said Treasury Inspector General for Tax Administration J. Russell George. “Even more troubling, TIGTA found an environment which discourages employees from detecting fraudulent applications.”