THE Treasury Inspector General for Tax Administration (TIGTA) Made Their Report About IRS Manually Issued Tax Returns Public

Manual tax refund is a refund that is not computer generated using IRS database that stores taxpayer information. In 2007, IRS (Internal Revenue Service) released a total of 254,000 manual tax refunds to US taxpayers, totaling $33.5 billion. TIGTA found that data files carrying manual refund transactions were erroneous, incomplete, and maintained by the IRS. TIGTA told that because manual tax refunds represent billions of dollars, this situation can cause the Federal Government an important amount of loss in tax revenues. A larger amount of computerized controls can improve efficiency over manual tax refunds, TIGTA told.

J. Russell George, the Treasury Inspector General for Tax Administration told that "Due to inaccurate and incomplete data, the IRS is unable to readily determine if erroneous or fraudulent manual refunds are being issued".

IRS put some measures into action to reduce the number of erroneous manual tax refunds. Ensuring no employee can randomly input and authorize payment on the same manual refund is one of the precautions.

Read more about IRS Tax.