Multiple TINs Result in $380M in Erroneous Refunds

Individuals inappropriately received at least $380million in personal tax exemptions and tax credits in 2007 as a result of themultiple use of Taxpayer Identification Numbers according to a new reportreleased from the Treasury Inspector General for Tax Administration.

"Ourreport underscores the serious challenge the Internal Revenue Service faces inpreventing erroneous tax benefits associated with multiple TaxpayerIdentification Number uses," said J. Russell George, the TreasuryInspector General for Tax Administration. "Left unaddressed, the amount oferroneous payments our report identified could exceed $1.9 billion over afive-year period," he added.

All filers must include an identifying number or TIN. Forthe majority of filers, the TIN is the individual's Social Security Number. Inthe absence of an SSN the IRS assigns a TIN, which can only be used to claimcredits on one tax return per year.

TIGTA identified 2.4 million unique TINs that were usedto claim a personal exemption or a tax credit on 3.2 million tax returns in2007.

To view the report, and full IRS response, go to: http://www.treas.gov/tigta/auditreports/2010reports/201040117fr.pdf.