IRS Needs Better Oversight of Repayment by Tax Cheats
by AccountingWEB on
By AccountingWEB Staff
According to a new Treasury Inspector General for Tax Administration (TIGTA) report - "Procedures Are Needed to Improve the Accounting and Monitoring of Restitution Payments to Prevent Erroneous Refunds" - the IRS should beef up its internal controls to make sure that those convicted of tax crimes pay up.
"If the IRS does not collect the restitution that it is owed by criminals who have been convicted of tax-related crimes, justice has not been served," said J. Russell George, Treasury Inspector General for Tax Administration. "All efforts must be made to collect on the funds due to the American people."
In fact, the report found that the IRS in some cases wrongly gave refunds totaling about $543,000. IRS officials were unable to properly account for restitution payments or to ensure defendants were following conditions of their probation. TIGTA's analysis of data used to monitor defendants identified inaccurate tax account data totaling approximately $330,000 for twenty-five defendants.
Those who are convicted of tax-related crimes can be required to go to prison, serve probation, pay fines, make restitution, or carry out any combination thereof. The report noted, "However, the perception has grown that many defendants, despite being convicted of violating the tax laws, are escaping all responsibility for the payment of the taxes associated with the offenses they committed."
TIGTA recommended internal control improvements, establishment of a single database for monitoring defendants, revising guidelines for earlier notification to the IRS Criminal Investigation Division of the status of whether convicted individuals' are meeting the conditions of probation and restitution, and obtaining the IRS Office of Chief Counsel's opinion on the use of refund offsets.
The IRS agreed with the recommendations, saying improvements have already been made.
- IRS Commissioner Talks about International Tax Cheats
- Supreme Court to Decide on Tax Audit Statute of Limitations
You may like these other stories...
IRS audits less than 1 percent of big partnershipsAccording to an April 17 report from the Government Accountability Office (GAO), the IRS audits fewer than 1 percent of large business partnerships, Stephen Ohlemacher of the...
Legislation coming out of Washington just might reduce homeowners' burden for disaster insurance. It's a topic very much on everyone's minds since the mudslide in Oso, Washington. The loss of human life was...
Divorce is hard, and the IRS isn't going to make it any easier. The IRS generally says "no" to tax deductions that might ease the pain of divorce. In certain circumstances, however, you might be able to salvage...
Upcoming CPE Webinars
Is everyone at your organization meeting your client service expectations? Let client service expert, Kristen Rampe, CPA help you establish a reputation of top-tier service in every facet of your firm during this one hour webinar.
In this session Excel expert David Ringstrom, CPA introduces you to a powerful but underutilized macro feature in Excel.
This material focuses on the principles of accounting for non-profit organizations' revenues. It will include discussions of revenue recognition for cash and non-cash contributions as well as other revenues commonly received by non-profit organizations.
During the second session of a four-part series on Individual Leadership, the focus will be on time management- a critical success factor for effective leadership. Each person has 24 hours of time to spend each day; the key is making wise investments and knowing what investments yield the greatest return.