Unless you filed for an extension, by now you should know if you were one of millions of Americans whose tax return was rejected because a crook stole your ID and your refund.
According to this GAO report, there were about 5.1 million attempted fraud cases in 2014.
However, only 1,063 criminal investigations were opened for these cases. In fact, the problem is growing 60% every year, but in 2014 related criminal investigations were cut 30%.
This fascinating story from the Chicago Tribune details the problem:
About 2.9 million incidents of tax-related identity theft occurred in 2013, up from nearly 1.8 million in 2012, according to a report from the U.S. Treasury Inspector General for Tax Administration. A spokesman said he didn't have more current numbers....
In calendar year 2011, the IRS identified more than 1.1 million incidents of identity theft affecting the nation's tax system, up from 441,000 in 2010, the inspector general said in its report....
But agency records show it's initiating fewer criminal investigations related to identity theft. Also in January 2015, the IRS said it had initiated 1,063 criminal investigations related to identity theft in fiscal year 2014.
In January 2014, the IRS said it initiated 1,492 identity theft-related criminal probes in fiscal 2013, up 66 percent from fiscal year 2012.
According to the FTC, tax related identity theft is the most common form of identity theft affecting American consumers. However, the IRS seems powerless to stop the criminals.
IRS Commissioner Koskinen explained the problem to The Hill:
Koskinen said the agency is working with 13,000 fewer people this tax season and stands to lose an addition 2,000 to 3,000 people with proposed budget cuts.
Economist Jared Bernstein, among others, diagnosed the underlying cause:
By cutting the IRS budget, Congress ensures that the $385 billion annual tax gap - that's the estimated difference between taxes owed and taxes paid - remains in place. According to Treasury Department estimates, each additional $1 spent on IRS enforcement yields $6 of additional revenue. In this regard, whacking the IRS budget works to preserve and potentially expand a big tax cut, albeit an illegal one. That gap represents 11 percent of this year's spending, implying that the failure to collect revenue that's owed adds significantly to the budget deficit, another reminder of how some of these alleged budget hawks are really chicken hawks.
So enjoy your tax refund if you got it. If someone else got it, you can blame the GOP.