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IRS Refund Tax Compliance Office Responsibilities

To protect federal revenue against inmate tax fraud, the IRS established the Refund Tax Compliance Office (RTC) in August 2011. The IRS recognizes refund tax fraud is an area of concern and that inmate refund claims require more scrutiny.

The new RTC Office works closely with state departments of correction and the Federal Bureau of Prisons. With staff skilled in data collection, analysis and fraud detection, the office’s primary focus is to stop issuance of fraudulent refunds to inmates in state and federal prisons.

The RTC Office’s responsibilities are to:

  • collect detailed inmate data from state departments of correction and the Federal Bureau of Prisons, as required by federal law;
  • use the collected data, with sophisticated filters, to identify noncompliant returns, including situations where identity theft seems likely;
  • select noncompliant returns for pre-refund or post-refund audit;
  • prevent issuance of refunds to inmates who have filed noncompliant returns;
  • work with state and federal prison officials to monitor inmates’ tax-related correspondence for fraud activity;
  • make presentations to prison officials and provide training to them to identify tax fraud;
  • provide outreach information to prisons to enable inmates who are re-entering the civil community to comply with federal tax laws.

The Refund Tax Compliance office’s focus is civil. It operates independently of IRS’s Criminal Investigation Division, which remains responsible for prosecuting criminal tax fraud by inmates.

You can contact the Refund Tax Compliance Office by mail:

Internal Revenue Service
Stop 975
1040 Waverly Avenue
Holtsville, NY 11742

Page Last Reviewed or Updated: 09-Jan-2015