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Aug 29

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IRS still needs to shore up its fraud detection efforts

With a self reported estimate of $19.2 billion worth of tax return fraud each year, the IRS is working to improve its detection efforts.  The Treasury Inspector General for Tax Administration (“TIGTA”) issued a July report highlighting weaknesses in the IRS’ Return Review Program (“RRP”).  The TIGTA recommended that the IRS Chief Technology Officer implement the following:

“1) establish appropriate program-level governance with enterprisewide authority for the RRP;

2) clearly document the RRP systems integrator roles and responsibilities;

3) complete the RRP Prototype Management Plans, clarify how to measure prototype success, map prototype activities to requirements, incorporate lessons learned, and obtain approval from governance bodies;

4) document, for approval by RRP governance bodies, the decided systems development path;

5) establish sufficient Enterprise Life Cycle guidance for prototypes; and

6) take appropriate steps to ensure that change requests include alternative analyses and impact assessments and also establish and implement Enterprise Architecture guidelines for evaluating later versions of tested commercial products.”

The IRS has agreed with these ITGTA recommendations and has begun implementing them.

About the author

Renee Howdeshell

Renee Howdeshell is a founding member of Fulcrum Inquiry, an accounting, finance and economic consulting firm that performs damage analyses for commercial litigation, forensic accountings, royalty & distribution audits, financial investigations, and business valuations. Ms. Howdeshell holds a degree in Finance and Marketing from the University of Virginia's McIntire School of Commerce and is a Certified Public Accountant (CPA) and a Certified Fraud Examiner (CFE). She has testified as an expert witness in federal court, CA state court and arbitration regarding the results of her work. She can be reached at (213) 787-4112 and her resume is available at www.fulcrum.com.

Permanent link to this article: http://betweenthenumbers.net/2013/08/irs-still-needs-to-shore-up-its-fraud-detection-efforts/

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