The IRS’s new fraud prevention program, planned for use with Obamacare, has been plagued with implementation problems, according to a Treasury Inspector General for Tax Administration report.
The report, released Monday, outlined several problems with how the IRS implemented the new Return Review Program (RRP), including improper vetting of the RRP’s initial prototypes, poor communication during the initial development, and unclear management rules.
The report comes as the Obama administration has delayed the verification requirement for subsidies and healthcare experts have raised concerns about the risk of fraud and waste under the law.
The IRS is developing a new fraud-prevention program because the current system is outdated and will be completely obsolete by the end of 2015, according to the report.
The new fraud detection system is currently scheduled for deployment in early 2015 to process individual tax returns from 2014, when the first tax returns with Obamacare subsidies will be submitted.
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