How much is unclear, but officials say it has more than wiped out the estimated $20 million the IRS has saved on paperwork. For instance, the agency sniffed out more than 25.000 fraudulent electronic returns, ranging from individuals claiming undeserved credits to a Pennsylvania tax preparer who filed 431 bogus returns, worth $1.1 million. But even in cases where alarm bells did go off. n early half the “taxpayers” had already collected their money and vanished.
In response, the IRS has launched “up front” computer checks with special flags for first-time filers and those claiming an Earned Income Credit, which figured in two thirds of the fraud cases. Still. IRS Commissioner Margaret Milner Richardson is sure to be grilled about her electronic filing woes at congressional hearings this week. A talk with Super Patrolman Al Gore first?
