The new preparer regulation system is up and running. Accenture, formerly Andersen Consulting, collects millions to process PTINs, while millions more go to Prometric, to administer the “competency exams.” Everyone, I mean, everything, is under control.
Except for the little matter of billions of taxpayer dollars going out the door to identity thieves claiming tax refunds. The Wall Street Journal reports:
Between October 2010 and June 2011, the IRS received phony tax returns based on stolen Puerto Rican identities that would have led to the disbursement of $5.6 billion to alleged fraudsters, two of these people said. It is unclear how much money the IRS ultimately sent but one person familiar with the matter said an estimated $2 billion in checks was distributed.
But there’s more! Some random headline from this week’s news:
- Keys residents victims of income tax fraud
- IRS May Draft Cops to Catch Tax Cheats
- IRS policies help fuel tax refund fraud, officials say
- Tampa mayor Bob Buckhorn urges IRS to do more to stop tax fraud
So while Commissioner Shulman has devoted enormous resources to an elaborate system to register and control tax preparers, the filing system is hemorrhaging billions to identity thieves — who, adding insult to injury, haven’t paid a dime to Accenture or Prometric. I understand 2 million 1040s are on hold because of ID theft problems.
But, by golly, the first exam results are being issued. It’s always good to secure the front door while the back of the house is on fire.
