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IRS increases review time for tax returns to prevent fraud

Thursday 24 March 2016 10:48 CET | News

The IRS is now taking up to 21 days to review a tax return which in 2015 took 7 days to review, a recent report unveils.

According to findings from iovation, this increase of taking up to three times as long to review filings is attributed to the IRS’ increased anti-fraud measures and due diligence to identify fraudulent returns. Earlier in 2016, the agency said it planned to issue nine out of 10 refunds within 21 days.

The IRS has implemented new tax fraud safeguards this year including industry-wide standards for passwords, account validation and information sharing to help spot and stop fraud. In 2015, it claims to have stopped 1.4 million confirmed identity theft returns, totaling USD 8.7 billion. The IRS reported that in 2013, it paid out USD 5.8 billion in fraudulent refunds to identity thieves.

The IRS reports it takes an average of 278 days before an identity theft claim is cleared. While there is no foolproof way to protect your identity, consumers can take precautions to protect themselves from falling victim to tax fraud.


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Keywords: online fraud, online security, cyber security, fraud prevention, IRS, tax returns, iovation
Categories: Fraud & Financial Crime
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Countries: World
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Fraud & Financial Crime