TIGTA reviews IRS Tax Exempt/Government Entities anti-fraud program

The Treasury Inspector General for Tax Administration (TIGTA) has publicly released its review of the Internal Revenue Service's (IRS) efforts to increase the effectiveness of the Tax Exempt/Government Entities (TE/GE) Division's anti-fraud program.

TIGTA found that the Division's five offices have implemented changes to their anti-fraud programs, resulting in more potential fraud being identified. More cases are referred to the IRS Criminal Investigation Division for further investigation and to the Justice Department for possible prosecution. However, the effectiveness of anti-fraud programs varies by office, with one of the five offices responsible for most of the referrals for investigation and prosecution.

TIGTA recommended that the TE/GE Division develop and implement a uniform, Division-wide approach with centralized oversight for its anti-fraud program and ensure that all TE/GE offices follow IRS procedures. The IRS agreed with TIGTA's recommendations and provided planned actions to address them.

TIGTA conducted the audit as a follow-up to its September 2003 and September 2005 reports on the TE/GE Division's efforts to improve its fraud detection and prevention program.

"The Tax Exempt Division has made significant progress in detecting and preventing fraud," stated J. Russell George, the Treasury Inspector General for Tax Administration. "However, the IRS should ensure that all of the Division's offices are effectively implementing anti-fraud programs. An effective anti-fraud program will provide greater assurance that the trust placed in tax-exempt organizations by taxpayers and the good work done by most of them are not tarnished," Inspector General George added.

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

Apr 22
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.
Apr 24
In this session Excel expert David Ringstrom, CPA introduces you to a powerful but underutilized macro feature in Excel.
Apr 25
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.
Apr 30
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.