The Internal Revenue Service has not developed sufficient processes to ensure that more than 61 million tax refunds were directly deposited last tax season to the correct bank account, according to a new report from the Treasury's inspector general.The Treasury Inspector General for Tax Administration said that the IRS places responsibility for compliance with federal direct deposit regulations on the taxpayer, and indicated that it is the taxpayer's responsibility to ensure that their tax refunds are directly deposited only into their accounts. TIGTA and representatives from the Treasury's Financial Management Service, however, believe that the IRS is responsible for enforcing the requirement.

The IRS has taken limited actions to ensure the accuracy of direct deposit information, noted TIGTA, but nonetheless, some tax refunds are being sent to accounts that are not in the taxpayer's name. The report found that last year, over 700,000 bank accounts received three or more tax refunds, totaling approximately $8.14 billion. In 2006, the IRS worked on an estimated 1,800 cases in which a taxpayer's refund was deposited into an account not in their name. The problems mainly resulted from a taxpayer or IRS transcription error, with most attributed to taxpayer error.

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