Obama's 2014 budget to include tax fraud proposals

For its part, the IRS has funneled an increasing amount of its resources toward battling identity theft recently, even as it has faced smaller budgets. In all, more than 3,000 IRS employees were working on identity theft issues by late 2012, more than double the number in 2011.

ADVERTISEMENT
The agency also says that it stopped some five million suspicious returns last year, and stopped some $20 billion in fraudulent refunds – up from three million returns and $14 billion in prevented refunds in 2011.

The Associated Press first reported the budget’s fraud prevention proposals.