IRS refunds billions of dollars to identity thieves

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Posted: Friday, November 8, 2013 10:09 pm | Updated: 10:57 am, Mon Nov 11, 2013.

WASHINGTON- In the last year, identity thieves have made a fortune off the IRS.

According to an Inspector General Report, the IRS paid out $3.6 billion in fraudulent tax refunds last year.  Believe it or not, that's down from 2011, when the IRS paid out $5 billion.

An audit also found the IRS failed to prevent more than a million potentially fraudulent tax returns for 2011 from being processed.  That includes 5,500 fraudulent returns by a single tax preparer for a refund of nearly $27 million.

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