January 03,2011

Grassley: Agencies Need to Curb Growing Prisoner Tax Fraud

M E M O R A N D U M

To:    Reporters and Editors
Fr:     Jill Gerber for Senator Grassley, 202/224-6522
Re:    Prisoner tax fraud
Da:    Monday, Jan. 3, 2011

The Treasury Inspector General for Tax Administration has completed a report required under Public Law 110-428, the Inmate Tax Fraud Prevention Act of 2008.  Sen. Chuck Grassley, ranking member of the Committee on Finance, made the following comment on the report. 

“More than two years ago, Congress gave the IRS the authority to share tax information with the Federal Bureau of Prisons.  The IRS and the Federal Bureau of Prisons still don’t have an agreement in place to share information.  Meanwhile, the number of inmates’ false returns and refunds continues to rise. This signals that prisoner tax fraud is a low priority for the federal government.  The agencies need to take action and correct that impression.  While they wait, taxpayers are picking up a growing tab for prisoner tax fraud.”