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

Why the Resurrection of Jesus Is the Most Important Event in History

President Trump Cited the Gospel of John in an Easter Message to Christians Worldwide

Artemis Astronaut Offers Easter Thoughts About the Bible and God's Provision for Humans

School Suspends Student For Supporting ICE Agents, after Allowing a Protest Against ICE

The 'Moment California Has Been Waiting For'; Trump Endorses Steve Hilton for Governor

Boise Removes LGBT 'pride' Flag from City Hall Due to New Idaho Law

Democrats Sue Over Trump's Executive Order on Mail-in Ballots

'God Was Watching Us': Trump, Ratcliffe, Hegseth Detail 'Miracle' Rescue of Airmen during Press Conference; 2 Top Iranian Terrorists Killed

An Easter Miracle!! 2nd Crew Member from Downed Jet in Iran Rescued and Safely Extracted after Intense Race to Reach Him before IRGC Terrorists

PRAYER ALERT: US F-15 Fighter Jet Downed in SW Iran, 1 Pilot Rescued and Safe; Search Continues for Second One

Dutch Sheets: Good Friday Message & Communion

'I Began to Pray': Pastor Talks Down Crazed Man Who Points Gun Directly at Him, Leads 10 to Christ

Trump HHS Renews Planned Parenthood Grants for 'Final Year' Due to Legalities, But 'Funds CANNOT Be Used for Abortions'

WATCH: Families at the Center of Washington State Transgender Sports Debate Stand Firm for Truth

Levin: Ruling Against Birthright Citizenship Should Be a 'Slam-Dunk' for Supreme Court [Video]

Colorado Appeals Court Reverses Tina Peters' Sentencing, Could This Lead to Her Freedom?

March Job Growth Triples Expectations, Unemployment Rate Dips

Artemis II Mission Pilot: 'We Need Jesus; Whether Here on Earth or Orbiting the Moon'

Democrat Lawmaker Steps Down, Says Faith No Longer Aligns with Left's Agenda

Trump Administration Charges 9 in Massive Massachusetts Fraud Scheme