Real Cases IRS pays out millions in fraudulent refunds Jul 21 2006 03:12PM
Daniel Jimenez (dgj1menez hotmail com)
07/17/06 -- 10:24 AM
IRS pays out millions in fraudulent refunds
By Mary Mosquera, GCN Staff

The federal government has lost as much as $300 million in improper refunds
because the contractor developing a Web-based fraud detection system for the
IRS failed to deliver it on time.

The tax agency has stopped only about one-third of the fraudulent claims for
refunds compared with the same time period last year, the agency said.

The IRS has spent $20.5 million so far to deliver the Web-based electronic
fraud detection system, which was to be ready earlier this year. Lead
contractor Computer Sciences Corp. was unable to deliver it on time or put
back in place the previous version of the system for this year?s tax season.

Daniel Jimenez

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