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Did the IRS Discourage Workers From Reporting Fraud?

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    Rep. Charles Boustany, (R-La.), on a Treasury report that the IRS actually discouraged workers from reporting tax fraud they found.

  • Duration 4:11
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So there's nothing the government hates more than taxpayer dollars going to waste right well maybe not.

According -- new Treasury Department report the -- -- doesn't really mind it that much.

The report shows the IRS actually just got his workers from looking out for -- -- some cases it even penalize them.

For reporting cases of fraud billions and your taxpayer dollars.

Going up in smoke towards fake tax returns congressman Charles this study of the house subcommittee on oversight.

Joins me now I don't want to believe this is true is this true.

Well this report is -- and -- reviewed the report.

Had a conversation with commissioner showman yesterday.

And he's admitted there were some problems -- one of the offices.

But to have that.

Literally billions of dollars of tax fraud.

Tax identity theft going on and we know about certain types of measures that can be taken out of work.

And they have not been used this is just unacceptable and we're gonna continue to investigate this and and work to remedy this very quickly.

When you look at the numbers involved it's really staggering almost 24000.

Tax refunds totaling 46 point three million dollars.

Issued to one.

Address one Italy asks in what seems like somebody would pick up on not.

Well you would hope so and and the commissioner acknowledged major problems with one office that was handling a lot of this.

I've submitted a letter with a number of very very pointed questions but which he's assured me he will answer that he understands this is a serious problem.

And it needs to be addressed very very quickly.

You when you drill down on the details to try and figure out how something like that could possibly happen you have to wonder there's more to it for example.

You know I read the base put up a team that was does -- thickly designated.

Two detected this type of fraud.

Why was that done.

Well I asked and that.

Western yesterday and he did not really give me a full answer on this and so aren't aren't I'm expecting a full Lancer shortly on why this happened because.

This team basically was successful in rooting out.

Fraud identity fraud using these individual tax identification numbers.

And so if we have something that works clearly we ought to be using it and expanding that type of program not stopping it also.

Motivation I -- why.

Jennifer saying that this -- with specifically broken up who could have made this better.

What would be the motivation for trying to look the other way on tax fraud well that's a great question and that's what we're trying to get after.

I'm concerned that there was a cultural issue going on within the IRS that was leading to this type of this -- -- Well meaning that there was a sort of let you know -- laissez Faire attitude about let things go.

We don't need to worry about this.

If with we start slapping people on the wrist it's gonna create.

Problems and our department.

So I don't -- -- why can't -- hear what kind of back -- and can speculate 'cause I'm just trying to imagine why they would want to look the other women I don't think there's a financial benefit to looking the other way.

Is there something that they're afraid of being accused of -- -- is it just lazy -- it why would they look the other -- Well I don't want to speculate job on that but I'm gonna get to the bottom of it and we're going to fully investigate that that's one of the questions I've asked.

I wanted to know who made this decision specifically to eliminate this program yeah.

Why did they make it we've asked those kinds of questions and -- be happening make sure that you have a copy of that letter that we -- We would love that we would love for you to come back -- as I'm very worried about this issue it's not just about taxpayer dollars I mean these taxpayer ID numbers are used by foreign residents were in this country in place of Social Security numbers and -- -- who don't have Social Security numbers.

I'm so this is really you know it's a national security issue as well -- Well this don't we did find four point two billion dollars -- one fiscal year in abuse of these numbers by illegals in this country.

The claiming child tax credits might committee found that last year at a hearing we've moved forward working with the treasury inspector general.

We're we're gonna root this out stop it okay congress and the moment you get more information please come back on the show absolute have a great weekend thank you -- --