Why Stolen Identity Refund Fraud is the IRS's Biggest Problem, and What Can Be Done About It (Part 2 of 3)

[Originally Published in the California Journal of Tax Litigation (November 2014)]
Part 2 of 3
By Former Of Counsel Attorney
The Government’s Response
The government’s response comes from three angles: (1) law enforcement response, designed to effectively prosecute identity thieves; (2) taxpayer-victim response; and (3) preventative measures.
Law Enforcement Response
Perhaps the biggest tool the IRS has used to detect identity theft schemes is the Scheme Development Center. By at least 2013, the IRS developed filtering tools that detect commonalities in returns, like the repeated use of the same address or bank accounts […]