State audit reveals possible tax fraud


December 28, 2006|By Jennifer Skalka | Jennifer Skalka,Sun Reporter

An audit of a division of the state comptroller's office released this month found that about 1,700 Social Security numbers were used by more than one individual in tax filings for the 2004 tax year.

Those cases resulted in $3 million in refunds, according to the report by the Office of Legislative Audits.

The report - a routine review required by the state every three years - indicated "possible fraudulent activity relating to the tax returns, and possible identity theft," the report says.

"It's certainly a concern if there's more than one, and, admittedly, it could just be an error if it's two, but if there's more than two, it's certainly questionable," said Gerald Martz, director of fiscal compliance audits for the Office of Legislative Audits.

As a result of the audit, the Revenue Administration Division of the comptroller's office has sent billings to 360 of the 1,700 cases and is conducting additional investigations.

Outgoing Comptroller William Donald Schaefer commended the Revenue Administration Division "for its transparency in reporting and forthcoming, fact-based submissions of data."

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