IRS to notify taxpayers about frozen refunds. — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
Under pressure from Congress, the IRS now says it will notify people when their refunds are withheld due to fraud suspicion. In 2005, the IRS froze more than 120,000 refunds that were identified as likely to be fraudulent. Over the past five years, more than 1.6 million such refunds were withheld without taxpayers being notified. Some refunds were eventually released, but others were delayed for months or still remain frozen.