DOR’s tax fraud program has stopped over $140 million in fraud since its inception in 2014. This program detects fraud before tax returns enter the financial system. This means less fraudulent refunds are processed and paid.
In the past, DOR has successfully investigated tax fraud cases brought to our attention by concerned citizens. If you suspect a case of tax fraud, report it.
Schedule C Program
- Examines the amounts reported on the individual’s federal Schedule C form.
- The federal Schedule C is often filed by a business owner to report income or loss from the owner’s business.
- Each business owner must maintain records to support all income and expenses reported on their tax return. These records are then reviewed if that individual was selected to have their Schedule C verified through a desk audit.
In 2019, over $5 million was adjusted based on these examination requests. DOR is also working to educate filers to ensure accurate and compliant filing in the future.
Excess Withholding Program
- Identifies individuals who appear to have incorrectly reported their tax withholdings, either by error or in an attempt to get a larger refund.
- Identified and adjusted more than $2.7 million in excess refunds in 2019.
- DOR fraud team is examining prior year returns and making any identified adjustments.