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Bogus Tax Refunds for Prisoners - $112 million
The Internal Revenue Service paid out $112 million in undeserved tax refunds to prisoners who filed fraudulent returns, according to the Treasury Department's Inspector General for Tax Administration (TIGTA). According to TIGTA, The IRS fails to screen most tax returns filed by prisoners - even when it knows it has no wage information for them. The inspector general's office first highlighted this lack of oversight in 2005, but the problem has persisted.