The Government Accountability Office (GAO) estimates that criminals attempted at least $14 billion in identity theft tax refund fraud in 2015, and the Internal Revenue Service (IRS) paid out at least $2.24 billion on that amount. To combat this fraud and protect taxpayers, the IRS has turned to advanced analytics.
The IRS began developing the Return Review Program (RRP) in 2009 to replace a system that was no longer capable of keeping pace with the increasing levels and sophistication of fraud that the service faced, as well as the service’s evolving compliance needs.
“Our Return Review Program is the service’s primary system for detecting identity theft and pre-refund fraud in the tax system,” says Michael Cockrell, director of data delivery services for IRS IT Applications Development. “Think of RRP as an engine that sits within the tax processing pipeline, scanning for potential identity theft and fraud.”
Read More from This Article: IRS combats fraud with advanced data analytics