Analytics To Fight Tax Fraud

This resource examines the most pressing challenges facing U.S. tax agencies, with identity theft and fraudulent tax returns leading the list. Criminals are exploiting stolen personal and financial data to file fake returns, often bypassing front-end detection systems. The IRS itself has suffered breaches, with incidents involving compromised PIN generation and unauthorized transcript access. Alongside identity theft, agencies struggle with taxpayer non-compliance, including failure to file, underreporting income, and inflating deductions, issues that often require time-consuming audits years after returns are filed.

Compounding these threats is the reliance on outdated IT systems that are unable to keep pace with modern fraud schemes. Upgrading these systems is costly and time-intensive, yet increasingly necessary as fraud grows more sophisticated. For tax agencies, the dual challenge is safeguarding data while modernizing infrastructure under tight budgets. Download this report to explore the evolving risks in tax administration and learn practical strategies for strengthening fraud detection and compliance.