Has efiling increased tax fraud?
According to the IRS, there were 1.1 million cases of identity theft and efiling tax fraud in 2011 with dollars in the billions. 80% of tax returns are now efiled each year. I am a huge fan of efiling as we get an immediate confirmation of receipt by the government agencies so no concerns of returns lost in the mail, speedy refund time and processing times and also, no typing errors by government employees who previously had to hard code in tax return data. Yes, many benefits but these benefits also come with a price and that price is the rising incidence of identity theft and tax fraud.
The next year will be very interesting to watch and see how the government agencies react and address these efiling issues.