Senators seek remedies for tax fraud victims

The Senate’s top two tax writers are seeking to give taxpayers more protections from identity fraud.

ADVERTISEMENT
Government watchdogs have said that billions of dollars in refunds can be stolen in a given year, affecting hundreds of thousands of taxpayers.

The IRS has said that stopping that sort of fraud is a top priority, and that it’s now doing a better job identifying scammers. The new bill from Senate Finance Chairman Ron WydenRon WydenOvernight Tech: Net neutrality fight descends into trench warfare | Zuckerberg visits Ford factory | Verizon shines light on cyber espionage Franken, top Dems blast FCC over net neutrality proposal Trump goes big on tax reform MORE (D-Ore.) and the committee’s top Republican, Sen. Orrin HatchOrrin HatchGinsburg pines for more collegial court confirmations Senate's No. 2 Republican: Border tax 'probably dead' Overnight Finance: Inside Trump's tax plan | White House mulls order pulling out of NAFTA | New fight over Dodd-Frank begins MORE (Utah), seek to give the agency even more weapons.

“Tax refund fraud is a one-two punch for taxpaying individuals,” Hatch said in a statement. “Millions of taxpayers’ identities are compromised, and all taxpayers have their tax dollars wasted.”

“We have to better protect lawful taxpayers from this nightmare issue,” Wyden added.

The proposal would force businesses to get employee information to the IRS more quickly, and to give the agency more access to a new hires database.

Scammers themselves would face stiffer penalties, while victims of fraud would get streamlined access to IRS assistance.

The measure giving more tools to the IRS comes as House Republicans have balked at giving the agency more weapons to get uncollected revenue, in response to the ongoing Tea Party controversy. Those proposals were key planks in the Senate highway proposal.