The IRS must take further action to ensure the successful deployment and implementation of its new fraud detection system, the Treasury Inspector General for Tax Administration has said.
It said the new system, called the Return Review program, could help the agency capture more of an estimated 19.2 billion in annual tax refund fraud, but that improvements are needed to address system development risks inherent with the introduction of new technology.
The agency agreed with to take recommended steps for development process improvements.
"If deployed correctly, the Return Review Program could significantly enhance the IRS’s capabilities to prevent, detect, and resolve tax refund fraud, including identity theft," stated J. Russell George, Treasury Inspector General for Tax Administration.