FOR
IMMEDIATE RELEASE: Contact: McCall Avery
August
8, 2012 202/225-4201
Johnson
calls for resignation of IRS commissioner and ITIN reform
Inspector
General report uncovers multibillion dollar mismanagement
Today,
U.S. Congressman Sam Johnson (TX-03) called for the resignation of IRS
Commissioner Douglas Shulman in light of a shocking report revealing the IRS’s
actions that put billions of taxpayer dollars at risk. Johnson chairs the
Ways and Means Social Security Subcommittee.
The
Treasury Inspector General for Tax Administration’s (TIGTA) July 16, 2012
report, “Substantial Changes Are Needed to the Individual Taxpayer
Identification Number Program to Detect Fraudulent Applications” uncovered
deeply troubling actions relating to the IRS’s management of the Individual
Taxpayer Identification Number (ITIN) program.
“I am
deeply outraged by this report,” said Johnson. “American taxpayers
deserve better protection of their hard-earned money. It’s time for new
leadership.”
In
the report, TIGTA makes the following critical findings:
•
“Management has created an environment which discourages employees from
detecting fraudulent applications;”
•
“Management has eliminated processes used to identify questionable Individual
Taxpayer Identification Number application patterns and schemes;” and
•
“The assignment of an ITIN based on questionable documentation enables
individuals to then use this ITIN to file tax returns to commit tax refund
fraud.”
The
IRS issues ITIN numbers to individuals ineligible for Social Security Numbers,
including illegal immigrants.
“The
Commissioner and certain IRS officials are essentially aiding and abetting
illegal immigrants, and others, in fraudulently receiving tax refunds courtesy
of the American taxpayer by freely handing out ITINs,” said Johnson.
“That is just wrong.”
In
May 2011, Johnson introduced a bill (H.R. 1956) to combat the rampant fraud and
abuse of the popular refundable $1000 per child tax credit by simply requiring
tax filers to provide a Social Security Number. A version of this bill,
saving the American $7.6 billion, was included in a budget savings bill (H.R.
5652) passed by the House on May 10, 2012.
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