| Read about a conviction in a multi-million dollar pandemic loan fraud case. Then, check out the results of a first-of-its-kind inspection we did of IRS facilities in Puerto Rico, an assessment of security at taxpayer walk-in sites, and how the IRS can improve the process it uses to issue Employer Identification Numbers (which are sometimes used by fraudsters to steal taxpayer dollars).
Marietta Man Convicted of $9.6 Million PPP Loan Fraud and $3.4 Million Tax Fraud Schemes
Inspection of Select IRS Operations in Puerto Rico IRS facilities in Puerto Rico have improved their ability to continue operations during natural disasters and meet minimum security and safety standards. We also found that the IRS's contract with its Puerto Rico vendor ensures that the IRS is not overcharged for servicing bins used to destroy documents with sensitive information. However, we observed instances where bins overflowed, did not have barcodes that ensure accurate payments are made for the services provided, and contained non-sensitive waste. We also found that the IRS does not regularly inspect the vendor's mobile shred trucks to ensure that
sensitive information is protected.
Actions Need to Be Taken to Address Taxpayer Assistance Center Safety and Security Weaknesses
In 2024, we did unannounced inspections at 27 Taxpayer Assistance Centers that revealed security weaknesses that could endanger IRS staff and taxpayers. The IRS failed to consistently test key systems, verify emergency contact information, and apply standard safety protocols. Additionally, some Taxpayer Assistance Centers lacked required security measures for rooms that accept large cash payments. Further Improvements Are Needed to Strengthen the Controls for Issuing Employer Identification Numbers An Employer Identification Number (EIN) is a nine-digit number assigned by the IRS to identify a business. In Fiscal Year 2024, the IRS issued more than 8.2 million EINs We previously reported that actions were needed to reduce the risk of fraudulent use of EINs and improve the effectiveness of the online system IRS uses to process most of them. In this review, we determined that the IRS needs to take additional actions to address recommendations from our prior report. For example, programming has not been implemented to prevent sole proprietors from receiving multiple EINs; estates do not have a date of death for the decedents; and manual processing errors are allowing businesses and deceased taxpayers to be listed as a responsible party.
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