9/5/2006

IRS Gives Away $318M Because Of Bungled Software Upgrade

Filed under: — By Aviran Mordo @ 11:16 pm

The Internal Revenue Service issued more than $318 million in refunds on phony returns last year because of a botched software project, a government report released last week said.

The software the agency used to screen returns for signs of fraud was to be replaced with a Web-based application by January 2006, but when there was no end in sight to the $20.5 million project, the IRS tried to resurrect the old system. That older program, however, could not be returned to operation in time to handle 2005’s returns.

According to the report issued by the Treasury inspector general for tax administration, the lack of a software screening system meant that the IRS may have issued as much as $318.3 million in fraudulent refunds during 2006.

Source: InformationWeek

 

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