The report uncovered most illegal immigrants who pay taxes have stolen someone's legal identity. Taxpayers may first realize they are victims when they receive an IRS notice of a discrepancy in the income they reported on their tax return.

Each year, the IRS receives about 2.4 million tax returns filed using an Individual Taxpayer Identification Number with reported wages. But the IRS only manages to identify half of the potentially 1.4 million people likely affected by the fraud in 2015, the Treasury Inspector General for Tax Administration said in its report.

"Cases of employment identity theft can cause significant burden to innocent taxpayers, including the incorrect computation of taxes based on income that does not belong to them," said J. Russell George, the inspector general.

The report also found that the IRS did not identify 497,248 victims, even though identity thieves electronically filed tax returns with evidence that they used the victims' Social Security numbers to gain employment. These victims did not have an IRS tax account and many were claimed as a dependent on a filed tax return. Without a tax account, the IRS cannot add an employment identify theft marker. Notifying these individuals will require the IRS to develop additional procedures.

For another 60,823 victims, who have an IRS tax account, the IRS did not update the account with the required employment identity theft marker. One reason is attributable to an IRS programming deficiency.

In addition, the IRS has not established a process to identify employment identity theft while processing paper tax returns. Based on its review, the Treasury Inspector General for Tax Administration projects that the IRS did not identify 272,416 victims of employment identity theft for the 685,737 paper tax returns filed in the processing year of 2015. 

The IRS agreed to some of the inspector general's recommendations but refused others. 

CBN News

To receive daily emails from Breaking Christian News to your inbox CLICK HERE

Tens of Thousands Attend Jerusalem Annual Passover Priestly Blessing, Focus on Hostages, Families

Oregon Taps Out of Drug Decriminalization: Three Years after Voting to Make Drug Use Legal, the State Has Reversed Course

Pro-Life Democrat Runs 'Graphic' Abortion Ad during the 'Today' Show

Outrage Follows Biden's Abortion Blessing at a Recent Rally

Alberta Official Reveals 'Almost All' Wildfires in Province This Year Have Been Started by Humans, Not Climate Change

Biden's EPA Rolls Out Regulations Aimed at Killing the American Coal Industry

New York City Union Workers Backing Trump 3 to 1 Over Biden; Chant 'We Love Trump' during Impromptu Visit

8 GOP States (and Counting) Ban Biden's DOJ from 'Intimidating' Voters at 2024 Polls

Poll: A Majority of Americans Support Mass Deportation for Illegals, and Nearly Half of Latinos Agree

West Virginia Student Helps Pass Bill to Teach Intelligent Design: 'This Is a God-Fearing State'

Free Speech Resolution Allows Satanic Temple 'Invocation' Sparking Chaos at a Michigan Board Meeting

Paris Olympics Will Feature a 'Pride House' to 'Celebrate' Homosexual and Gender-Confused Athletes

Video Captures Drag Queen Indoctrinating Kids, Getting Them to Chant... 'Free Palestine'

Who's Funding the Anti-Israel, Pro-Palestine Protests?

More Lawfare: Former Arizona GOP Chair Kelli Ward, Rudy Giuliani, Mark Meadows Indicted for Role in Alternate Electors Case

DEVELOPING: Harvey Weinstein Rape Conviction Overturned By New York Appellate Court

Supreme Court Puts Final Nail in Coffin of Effort to Block Trump from Ballot in Arizona

SCOTUS Begins Hearing Arguments on Presidential Immunity: Is This the Most Important Day for Donald Trump?

Courageous: Worship Leader Sean Feucht Prepares to Confront Anti-Israel Evil, Darkness, and Horror

'Australian Censorship Commissar' Orders X to Globally Remove Video of Islamic Terror Attack on Christian Bishop