IRS workers compensation is vulnerable to fraud

Federal Times: The Internal Revenue Service does not properly verify and monitor portions of its workers compensation claims system, leaving the agency vulnerable to fraudulent compensation filings, according to a June 15 Treasury Inspector General for Tax Administration report.

“Based on a statistical sample of active claims, we estimate that 133 (9 percent) [of] active claims were not initiated properly. If claims are not initiated properly, the IRS may make payments for compensation and medical expenses that are not necessary. Given that some IRS employees may receive workers’ compensation benefits for decades, improperly approving even one claim could prove very costly to the IRS,” the report said.

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