RefundtalkWhen the IRS officially places your return under review, you will receive a CP05 notice, and the processing of your refund will be delayed until the review is complete. According to the IRS website, a number of distinct factors can trigger the review, including the need to verify the following entries on your return: Review Triggers…
Category Archives: Tax Return Review
Significant Delays of Legitimate Tax Refunds
I thought it would be a good idea to discuss an issue that affects many taxpayer returns, namely the IRS processes for identifying and stopping refund fraud. Attempted refund fraud has become a significant problem in our tax system. According to the most recent figures available, in the calendar year (CY) 2016, identity theft (IDT),…
Taxpayer Protection Program (TPP)
The IRS established the Taxpayer Protection Program (TPP) to proactively identify and prevent the processing of identity theft tax returns and assist taxpayers whose identities are used to file such returns. However, as part of the TPP process to identify potential identity theft returns, many legitimate taxpayer returns are also selected. When this happens, it…
The IRS Integrity and Verification Operations
Integrity & Verification Operation (IVO) department provides leadership and direction to employees responsible for fraud detection and prevention, revenue protection, and account correction. Integrity and Verification Operation (IVO) is the department designated to screen individual master file returns in the Electronic Fraud Detection System (EFDS) for possible identity theft and false income and withholding. Individual…
Systemic Verification
Systemic verification is one element of the IRS’s Return Review Program (RRP), its primary system to detect fraud and noncompliance. The Return Review Program is a platform that runs individual tax returns through a set of rules and models to detect potential taxpayer fraud and other noncompliance. During systemic verification, IRS checks information that taxpayers…
IRS Fraud Filters Delay Tax Refunds
The IRS’s Failure to Establish Goals to Reduce High False Positive Rates for Its Fraud Detection Programs Increases Taxpayer Burden and Compromises Taxpayer Rights Over the past decade, the IRS has been significantly impacted by fraud and identity theft. To detect and prevent identity theft and other tax refund fraud, the IRS has established a…
Return Review Program
A system the IRS uses to identify potentially fraudulent electronically filed tax returns. It enhances the IRS’s capabilities to detect, resolve, and prevent criminal and civil noncompliance and reduces issuance of fraudulent tax refunds. The Return Review Program (RRP) is the Internal Revenue Service’s (IRS) primary individual tax refund fraud selection system. The RRP uses…
What Happens When Your Tax Return Is Flagged for Review?
Filing taxes can be stressful and when the IRS opts to take a closer look at your return, that can only increase your anxiety level. Getting your return flagged for review doesn’t mean you’ll be audited, but it can raise the odds that Uncle Sam will discover that the numbers don’t add up. With tax season…
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