In what may be a case of fraud or may just reflect the amount of people here working under Individual Taxpayer Identification Numbers (ITIN), the IRS issued the largest amount of refunds to individuals who do not report under Social Security numbers this past year.

For individuals who are citizens, all tax reporting is required under his or her individual SSN. If the individual is unable to qualify for a SSN, he or she can apply for a ITIN. The case for fraud arises because, according to a report by the Treasury Inspector General for Tax Administration, there are not enough safeguards in place to ensure these numbers are correct. In fact, in a recent report, it was stated that IRS supervisors were urging agents to ignore potential fraud in a program that reviews and verifies applications for ITINs.
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Just another case to show that our tax system is broken and you need to ensure you have proper planning to prevent unnecessary payments into a system that isn’t tracking payments as it should.