text:
 Biografia
 Nato a Livorno, ha trascorso la giovinezza ad Arezzo. Nel 1949 si è laureato in architettura all'Università di Firenze, dove ha avuto tra i suoi maestri lo storico dell'arte Mario Salmi e l'etruscologo Antonio Minto. Successivamente è stato Assistente di Giovanni Michelucci presso la facoltà di ingegneria dell’Università di Bologna.
 Vincitore di una Fulbright Scholarship, nel 1953 ha conseguito un dottorato all'Illinois Institute of Technology di Chicago, dove è stato allievo di Mies van der Rohe e Ludwig Hilberseimer. Nel 1952, in occasione della prima americana di Miracolo a Milano, presentata da Vittorio De Sica alla International House di Chicago, ha conosciuto Enrico Fermi, con il quale ha intrattenuto un'amicizia.
 Rientrato in Italia si stabilisce a Parma, città di origine di suo padre, dove nel 1953 si aggiudica il concorso per il nuovo piano regolatore generale della città. Dietro invito di Josep Lluís Sert, è stato Visiting professor alla Harvard School of Design (1963/64) e alla Iowa State University (1964/65). Nel 1958 partecipò ad un concorso per la costruzione di un Memorial ad Auschwitz, indetto su iniziativa di Simon Wiesenthal. Il suo progetto risultò tra i vincitori, ma l'opera non venne realizzata per una legge che non ammetteva modifiche allo stato originario dell'area. Il modello del suo progetto è ancora conservato nel Museo di Auschwitz-Birkenau.
 Nel 1958 ha conseguito la libera docenza in composizione architettonica all'Università di Firenze, risultando primo nella graduatoria nazionale. Nel 1959 Richard Neutra lo invita a collaborare a progetti di architettura da realizzare a Maracaibo in Venezuela. Dal 1964 al 1975 è stato docente di disegno presso il biennio d’Ingegneria dell’Università di Parma, e dal 1976 al 1990 direttore dell’Istituto di Architettura e Disegno.
 In dicembre 1972 ha partecipato a Shanghai e Pechino alla prima missione culturale e professionale del governo italiano in Cina. Ha tenuto la prima lezione di architettura all'Università di Shanghai. Nello stesso anno ha tenuto lezioni sull’architettura italiana al Politecnico di Varsavia.
 L'architetto Carpanelli è stato Presidente del Rotary club di Parma nel 1982/83 e Governatore del distretto 2070 del Rotary club italiano nel 1987/88. Ha partecipato a molte conferenze internazionali del Rotary, per citarne alcune ad Amsterdam, Berlino, Istanbul, Londra, Monte Carlo e Singapore.
 Ritiratosi dall'attività professionale nel 2014, nel febbraio 2016 ha donato il suo vasto archivio di progetti e disegni alla Fondazione Cariparma. Nel 2016 il Ministero della cultura lo ha nominato Ispettore Onorario per la tutela e vigilanza del patrimonio storico e artistico della provincia di Parma. Dal 2013 al 2019 è stato Presidente dell'Accademia nazionale di Belle Arti di Parma. Dal 2014 al 2020 è stato Presidente della sezione di Parma di Italia Nostra.
 Opere
 Tra le opere realizzate a Parma: Istituto Tecnico Industriale in via Toscana (1960) –
 Grandi magazzini Coin in via Mazzini (1963) – Chiesa parrocchiale di Gaiano (1968); la chiesa è stata consacrata il 14 giugno 1970 dal cardinale Giacomo Lercaro, accompagnato dal vescovo di Parma Mons. Amilcare Pasini – Camera di Commercio in via Verdi (1970) – Consorzio agrario provinciale (1972) – Complesso direzionale per uffici tra viale Fratti e viale Mentana (1975) – Centro direzionale delle Poste Italiane in via Montebello (1988) – Filiale di Collecchio della Cassa di Risparmio di Parma (1990) – Interporto di Parma (CePIM) a Fontevivo (1995) – Laboratori didattici e Aula Grande (500 posti) nel Campus di via Langhirano (1995-2000).
 Altre opere sono state lo stabilimento della Superbox a Sant'Ilario d'Enza (1975), il palazzo delle Poste di Carpi (1978), edifici residenziali per conto di INA-Casa a Ravenna ed altre città dell'Emilia-Romagna (1980-1985), la stazione sperimentale per l'industria conserviera ad Angri (Salerno) e il Centro direzionale della Banca Popolare dell'Etruria e del Lazio ad Arezzo (1998), in collaborazione con gli Ingg. Francesco Fornasari e Alfeo Tanganelli.
 Onorificenze
 Galleria d'immagini
 Note
 Collegamenti esterni
 Franco Carpanelli, ampia biografia sul sito accademianazionalebelleartiparma.it
 Cavalieri di gran croce OMRI


type: wikipedia

text:
Olga Vladimirovna Volkova (en ), née le à Léningrad dans l'Union soviétique, est une actrice russe.
 Biographie
 Filmographie
 1982 : Une gare pour deux de Eldar Riazanov
 1984 : Romance cruelle de Eldar Riazanov
 1984 : TASS est autorisé à déclarer... de Vladimir Fokine
 1987 : Mélodie oubliée pour une flûte de Eldar Riazanov
 1988 : Tuer le dragon de Mark Zakharov
 1991 : Promesse du ciel de Eldar Riazanov
 1991 : Le Cercle des intimes de Andreï Kontchalovski
 2007-2013 : Papiny Dochki
 2012 : Les Mamans de Sarik Andreassian
 2013 : Sherlock Holmes de Andreï Kavoune
 Récompenses et nominations
 Récompenses
 1993 : Artiste du peuple de la Fédération de Russie
 Nominations
 Notes et références
 Liens externes
 Naissance en avril 1939
 Naissance à Léningrad
 Actrice russe
 Actrice soviétique


type: caselaw

jurisdiction: EU

text:
 12.1.2015
 BG
 Официален вестник на Европейския съюз
 C 7/35
 Решение на Общия съд от 18 ноември 2014 г. — Lumene/СХВП (THE YOUTH EXPERTS)
 (Дело T-484/13) (1)
 ((Марка на Общността - Заявка за словна марка на Общността „THE YOUTH EXPERTS“ - Относително основание за отказ - Липса на отличителен характер - Член 7, параграф 1, буква б) от Регламент (ЕО) No 207/2009 - Обхват на проверката, която трябва да извърши апелативният състав - Проверка по същество, обусловена от допустимостта на жалбата - Член 59, първо изречение от Регламент No 207/2009))
 (2015/C 007/39)
 Език на производството: английски
 Страни
 Жалбоподател: Lumene Oy (Espoo, Финландия) (представител: адв. L. Laaksonen)
 Ответник: Служба за хармонизация във вътрешния пазар (марки, дизайни и модели) (СХВП) (представител: G. Schneider)
 Предмет
 Жалба за отмяна на решението на втори апелативен състав на СХВП от 26 юни 2013 г. (преписка R 187/2013-2) относно заявка за регистрация на словния знак „THE YOUTH EXPERTS“ като марка на Общността.
 Диспозитив
 1)
 Отменя решението на втори апелативен състав на Службата за хармонизация във вътрешния пазар (марки, дизайни и модели) (СХВП) от 26 юни 2013 г. (преписка R 187/2013-2) в частта относно „[п]репарати за избелване и пране[, както и] препарати за почистване, полиране, обезмасляване и шлифоване“ от клас 3 по смисъла на ревизираната и допълнена Ницска спогодба относно международната класификация на стоките и услугите за регистрация на марки от 15 юни 1957 г. и „хигиенни препарати за медицински цели[,] пластири, превързочни материали[,] материали за пломбиране на зъби и за зъбни отливки[,] дезинфектанти[,] препарати за унищожаване на вредни животни[,] фунгициди [и] хербициди“ от клас 5 по смисъла на посочената спогодба.
 2)
 Отхвърля жалбата в останалата ѝ част.
 3)
 Всяка от страните понася направените от нея съдебни разноски.
 (1) ОВ C 344, 23.11.2013 г.


type: other

jurisdiction: US

text: b'TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION\n\n\n\n\n Individual Taxpayer Identification Numbers\n Are Being Issued Without Sufficient\n Supporting Documentation\n\n\n\n December 8, 2009\n\n Reference Number: 2010-40-005\n\n\n\n\n This report has cleared the Treasury Inspector General for Tax Administration disclosure review process\n and information determined to be restricted from public release has been redacted from this document.\n\n Redaction Legend:\n 1=Tax Return/Return Information\n\n\n\n Phone Number | 202-622-6500\n Email Address | inquiries@tigta.treas.gov\n Web Site | http://www.tigta.gov\n\x0c DEPARTMENT OF THE TREASURY\n WASHINGTON, D.C. 20220\n\n\n\n\nTREASURY INSPECTOR GENERAL\n FOR TAX ADMINISTRATION\n\n\n\n\n December 8, 2009\n\n\n MEMORANDUM FOR COMMISSIONER, WAGE AND INVESTMENT DIVISION\n\n\n FROM: (for) Michael R. Phillips\n Deputy Inspector General for Audit\n\n SUBJECT: Final Audit Report \xe2\x80\x93 Individual Taxpayer Identification Numbers Are\n Being Issued Without Sufficient Supporting Documentation\n (Audit # 200940006)\n\n This report presents the results of our review to determine whether Individual Taxpayer\n Identification Numbers (ITIN) were being issued without sufficient supporting documentation.\n The overall objective of this review was to determine whether Applications for IRS Individual\n Taxpayer Identification Number (Form W-7) were efficiently and effectively processed and\n ITINs were appropriately issued. This audit was part of the Treasury Inspector General for Tax\n Administration\xe2\x80\x99s Fiscal Year 2008 Annual Audit Plan under the major management challenge of\n Providing Quality Taxpayer Service Operations.\n\n Impact on the Taxpayer\n The purpose of the ITIN is to provide alien individuals, whether or not they reside in the United\n States, an identifying number for use in connection with United States tax return filing\n requirements. The volume of ITINs is growing. When Forms W-7 are not effectively processed\n and ITINs are inappropriately issued, the risk increases that ITINs are being used to file\n fraudulent tax returns. Inadequate processing of ITIN application packages increases the risk to\n both the taxpaying public and the Federal Government for potential losses associated with ITIN\n applicants.\n\n Synopsis\n The ITIN was created to provide individuals who are not eligible to obtain a Social Security\n Number with an identification number for tax purposes. The Internal Revenue Service (IRS)\n\x0c Individual Taxpayer Identification Numbers Are\n Being Issued Without Sufficient Supporting Documentation\n\n\n\nissues ITINs to help individuals comply with Federal tax laws and provide a means to efficiently\nprocess and account for tax returns. Only individuals who have a valid filing requirement or are\nfiling a tax return to claim a refund of over-withheld taxes are eligible to receive an ITIN.\nIndividuals submit Forms W-7 through Acceptance Agents 1 or by submitting them directly to the\nIRS.\nITINs were issued without sufficient supporting documentation. A statistical sample of\n658 Forms W-7 selected from 1.5 million application packages (cases) submitted from January 1\nthrough November 21, 2008, showed that 510 cases (78 percent) contained errors. The highest\nerror rate (87 percent) was in applications submitted through Certified Acceptance Agents. 2 This\nincludes instances in which the Agents did not provide the documents required to support the\nForms W-7 submitted by them to the Treasury Inspector General for Tax Administration.\nHowever, there was also a significant error rate (35 percent) in application packages submitted\ndirectly to the IRS.\nA Certified Acceptance Agent is authorized under an agreement with the IRS to submit a\nForm W-7 to the IRS on behalf of an ITIN applicant without furnishing supporting documentary\nevidence. Instead, in the certificates of accuracy, Agents certify to the IRS that they have\nreviewed the appropriate documentation evidencing the ITIN applicant\xe2\x80\x99s identity and alien\nstatus, and that they are maintaining a record of such documentation.\nIRS employees process, but do not review, the applications submitted by Certified Acceptance\nAgents. They input the information from the Forms W-7 into the ITIN management information\nsystem called the Real-Time System. If all requirements are met, the ITIN is assigned\nsystemically by the ITIN Real-Time System. Eighty-seven percent (467 of 535) of the sample of\napplication packages submitted by Certified Acceptance Agents contained errors. For example,\n1) cases did not contain the documents required to issue an ITIN, 2) Forms W-7 provided to us\nby the Certified Acceptance Agents did not agree with the original Forms W-7 that were sent to\nthe IRS, 3) cases did not contain the required certificates of accuracy or the certificates were\nmissing required information and/or signatures, or 4) the Certified Acceptance Agents did not\ncomply with our request for copies of the application packages.\n\n\n\n\n1\n An Acceptance Agent is a person (an individual or an entity) who, pursuant to a written agreement with the IRS, is\nauthorized to assist alien individuals and other foreign persons (who are ineligible to receive a Social Security\nNumber) in obtaining an ITIN from the IRS. The Acceptance Agent reviews the necessary documents and forwards\nthe completed Form W-7 and supporting documents to the IRS. A Certified Acceptance Agent is authorized to\ncertify whether the documented proof is adequate and is not required to send the supporting documentation to the\nIRS, but agrees to maintain a record of the documentation obtained and reviewed pursuant to the obligations set\nforth in the agreement.\n2\n A sample of Acceptance Agents was selected from the ITIN data but after review the applications were\ndetermined to be submitted by Certified Acceptance Agents and not Acceptance Agents.\n 2\n\x0c Individual Taxpayer Identification Numbers Are\n Being Issued Without Sufficient Supporting Documentation\n\n\n\nIRS employees review and process applications submitted directly to the IRS. Thirty-five\npercent (43 of 123) of the application packages sampled that were submitted directly to the IRS\nby mail or through Taxpayer Assistance Centers 3 contained errors. The errors ranged from\nmissing and illegible documents to inconsistencies between the Forms W-7 and the supporting\ndocuments.\nAlso, supporting documents are complex and guidelines are inconsistent. Inconsistent guidelines\ncreate confusion for taxpayers and Agents in attempting to comply with the proper preparation of\na Form W-7 and determining the identification documents needed to support the issuance of an\nITIN.\nThere are also no controls to prevent an ITIN from being used by more than one taxpayer on\nmultiple tax returns. More than 60,000 ITINs were assigned and used on multiple tax returns\nprocessed in Calendar Year 2008. As with Social Security Numbers, ITINs are specific to\nindividuals and should be issued to and used only by that individual.\n********************************1*******************************************\n****************************************************************************\n****************************************************************************\n******************************. In addition, more than 55,000 ITINs were used multiple\ntimes on approximately 102,000 tax returns with refunds totaling more than $202 million.\nThe Real-Time System contains inaccurate data and is insufficient to oversee the Program. The\nIRS states that the System provides a one-stop service for processing Forms W-7 and issuing\nITINs. The System processes Forms W-7 in real-time and assigns the ITIN or creates reject or\nsuspense Forms W-7 automatically. Nevertheless, the information does not accurately reflect\nwhat type of Agent submitted the Forms W-7 and does not accurately reflect the information\ncaptured on the Forms W-7.\nResearch on the Real-Time System for 547 cases in our statistical sample found that 270 records\n(49 percent) contained inaccurate information relating to what type of Agent submitted the\napplication. The IRS does not know the volume of Forms W-7 that are submitted by Certified\nAcceptance Agents and, if not corrected, approximately 200 Certified Acceptance Agents may\nnot be included in any compliance activity.\nIn addition, information reflected on 110 (20 percent) of the 547 Forms W-7 was not transcribed\ncorrectly to the Real-Time System. Transcription errors included incorrect identification\ndocuments, birth dates, codes/reasons for submitting the Forms W-7, names, and/or addresses.\n\n\n\n\n3\n An IRS office with employees who answer questions, provide assistance, and resolve account-related issues for\ntaxpayers face to face.\n 3\n\x0c Individual Taxpayer Identification Numbers Are\n Being Issued Without Sufficient Supporting Documentation\n\n\n\n\nRecommendations\nWe recommended that the Commissioner, Wage and Investment Division, revise guidelines:\n1) related to processing applications submitted by Certified Acceptance Agents to ensure that the\nForms W-7 match the information on the certificates of accuracy before issuing ITINs and to\nensure that any supporting documents submitted with the certificates of accuracy are reviewed\nwith the same due diligence that is required for Forms W-7 submitted directly to the IRS by\nindividual applicants; 2) related to processing applications submitted directly to the IRS to\nensure that all information on the Forms W-7 is validated and consistent with supporting\ndocumentation; and 3) to ensure that the instructions for completing the Form W-7 and internal\nguidelines are consistent by clarifying who is required to complete a power of attorney,\nclarifying that prior versions of Form W-7 may be acceptable, and requiring that employees\nverify qualified applicants provide an entry date to the United States.\nThe Commissioner, Wage and Investment Division, should also 4) develop controls to prevent\nITINs from being used on multiple tax returns, 5) ensure that the data on the Real-Time System\nare accurate, and 6) develop procedures and internal controls to monitor the Real-Time System\nto ensure that information entered is accurate.\n\nResponse\nIRS management agreed with five of our six recommendations. Concerning the first three\nrecommendations, the IRS has taken steps to revise and update guidance and instructions to\nensure consistency and will update current guidelines to ensure the information on the Form W-7\nis validated and consistent. For Recommendations 5 and 6, the IRS, contingent on funding, will\ntake corrective actions to update the Real-Time System and ensure the information entered is\naccurate.\nThe IRS disagreed with Recommendation 4, stating that tax returns submitted with a duplicate\nsecondary/dependent ITIN are subject to compliance review after the return is processed and\ncorrected as necessary. Management\xe2\x80\x99s complete response to the draft report is included in\nAppendix VIII.\n\nOffice of Audit Comment\nIn its response, the IRS stated it was concerned with the weighting of the sample of Certified\nAcceptance Agent cases and that the sample was weighted based on one of our prior reports. 4\nAs such, it believes the results are not a true representation of the overall program. We do not\n\n4\n Inadequate Management Information Has Adversely Affected the Acceptance Agent Program (Reference\nNumber 2009-40-087, dated June 19, 2009).\n 4\n\x0c Individual Taxpayer Identification Numbers Are\n Being Issued Without Sufficient Supporting Documentation\n\n\n\nagree. The reason we oversampled Certified Acceptance Agents was to increase the reliability of\nthe results. It was based on a higher expected error rate as well as to account for Agents who\nmay not provide the requested documents. Of the 535 Certified Acceptance Agents sampled,\n102 (19 percent) did not respond. We believe the oversample was necessary and the overall\nrepresentation of the ITIN Program is accurate.\nThe IRS pointed out that the Internal Revenue Code does not require parenthood to claim a\ndependent. We agree and modified the report to avoid the potential for any such inference.\nAdditionally, the IRS disagreed with the third outcome measure, stating the outcome measure\nwas based on an incorrect calculation\xe2\x80\x94that 318,017 should be 311,579 based on its calculation\nof (110/547) x 1,549,397. However, the IRS\xe2\x80\x99 calculation does not incorporate the weighting of\nthe strata. The 318,017 taxpayers were calculated using 5 strata, and the errors were based on\neach stratum and then totaled. See Appendix IV for details.\nConcerning Recommendation 4, the IRS stated that tax returns submitted with a duplicate\nsecondary/dependent ITIN are subject to compliance review after the return is processed and\ncorrected as necessary, similar to duplicate Social Security Numbers. However, this is not a\n100 percent review and only a small number of ITIN tax returns are subject to audit and would\nbe corrected. We believe controls should be developed during processing, before the tax refunds\nare issued. This is comparable to how the IRS ensures dependents are not claimed on more than\none tax return. During the processing of electronic tax returns, the IRS will, with some\nexceptions, reject the second tax return submitted that used a duplicate Social Security Number.\nCopies of this report are also being sent to the IRS managers affected by the report\nrecommendations. Please contact me at (202) 622-6510 if you have questions or\nMichael E. McKenney, Assistant Inspector General for Audit (Returns Processing and Account\nServices), at (202) 622-5916.\n\n\n\n\n 5\n\x0c Individual Taxpayer Identification Numbers Are\n Being Issued Without Sufficient Supporting Documentation\n\n\n\n\n Table of Contents\n\nBackground ..........................................................................................................Page 1\n\nResults of Review ...............................................................................................Page 5\n Individual Taxpayer Identification Numbers Were Issued\n Without Sufficient Supporting Documentation ............................................Page 5\n Recommendations 1 through 3:.........................................Page 14\n\n The Same Individual Taxpayer Identification Numbers Are Being\n Used by More Than One Taxpayer on Multiple Tax Returns ......................Page 14\n Recommendation 4:........................................................Page 16\n\n The Real-Time System Contains Inaccurate Data\n and Is Insufficient to Oversee the Program...................................................Page 16\n Recommendations 5 and 6: ..............................................Page 18\n\n\nAppendices\n Appendix I \xe2\x80\x93 Detailed Objective, Scope, and Methodology ........................Page 19\n Appendix II \xe2\x80\x93 Major Contributors to This Report ........................................Page 22\n Appendix III \xe2\x80\x93 Report Distribution List .......................................................Page 23\n Appendix IV \xe2\x80\x93 Outcome Measures...............................................................Page 24\n Appendix V \xe2\x80\x93 Acceptable Documents When Applying\n for an Individual Taxpayer Identification Number ......................................Page 28\n Appendix VI \xe2\x80\x93 Errors Identified in Application Packages\n Categorized by Sample .................................................................................Page 29\n Appendix VII - Rules for Claiming the Child Tax Credit and\n the Additional Child Tax Credit ...................................................................Page 30\n Appendix VIII \xe2\x80\x93 Management\xe2\x80\x99s Response to the Draft Report ...................Page 31\n\x0c Individual Taxpayer Identification Numbers Are\n Being Issued Without Sufficient Supporting Documentation\n\n\n\n\n Abbreviations\n\ne-file(d), e-filing Electronically file(d); electronic filing\nIRS Internal Revenue Service\nITIN Individual Taxpayer Identification Number\nU.S. United States\n\x0c Individual Taxpayer Identification Numbers Are\n Being Issued Without Sufficient Supporting Documentation\n\n\n\n\n Background\n\nThe Individual Taxpayer Identification Number (ITIN) was created to provide individuals who\nare not eligible to obtain a Social Security Number with an identification number for tax\npurposes. The Internal Revenue Service (IRS) issues ITINs to help individuals comply with\nFederal tax laws and provide a means to efficiently process and account for tax returns. Only an\nindividual who has a valid filing requirement or is filing a tax return to claim a refund of\nover-withheld tax is eligible to receive an ITIN. An ITIN is issued regardless of an individual\xe2\x80\x99s\nimmigration status. The issuance of an ITIN does not:\n \xe2\x80\xa2 Change an individual\xe2\x80\x99s immigration status.\n \xe2\x80\xa2 Entitle the individual to Social Security benefits.\n \xe2\x80\xa2 Entitle the individual to work in the United States (U.S.).\n \xe2\x80\xa2 Entitle the individual to the Earned Income Tax Credit.\nIn general, the Social Security Administration limits its assignment of Social Security Numbers\nto individuals who are U.S. citizens and alien individuals legally admitted to the U.S. for\npermanent residence or under other immigration\ncategories authorizing U.S. employment. Only U.S. citizens and\nConsequently, individuals who do not meet these alien individuals legally\n admitted to the U.S. for\ncriteria cannot obtain a Social Security Number. permanent residence are\nIndividuals who are unable to obtain Social Security allowed to obtain Social Security\n Numbers.\nNumbers but have tax return filing requirements can\nbe either resident or nonresident aliens. The ITIN is\navailable to individuals who are required to have a\ntaxpayer identification number for tax purposes but do\nnot have and are not eligible to obtain a Social\nSecurity Number. The distinction between a resident\nand nonresident alien is important because each is\ntaxed differently. Resident aliens must follow the same tax laws as U.S. citizens. Specifically,\nincome from all sources, both within and outside the U.S., is taxed and the same tax forms used\nby U.S. citizens are required to be filed. Nonresident aliens must file a tax return only if they are\nengaged in a trade or business in the U.S., or if they have any other U.S. sources of income on\nwhich the tax was not fully paid by the amount withheld.\nThe ITINs are not valid identification outside the tax system. The IRS began processing\nApplications for IRS Individual Taxpayer Identification Number (Form W-7) in July 1996 and\n\n\n Page 1\n\x0c Individual Taxpayer Identification Numbers Are\n Being Issued Without Sufficient Supporting Documentation\n\n\n\nestimates that, as of December 2008, it has issued more than 14 million ITINs. Individuals apply\nfor an ITIN by completing a Form W-7 and using one of the following methods:\n1. Submitting Form W-7 through an IRS-approved Acceptance Agent. An Acceptance\n Agent is a person (an individual or an entity) who, pursuant to a written agreement with the\n IRS, is authorized to assist alien individuals and other foreign persons (who are ineligible to\n receive a Social Security Number) in obtaining an ITIN from the IRS. The Acceptance\n Agent reviews the necessary documents and forwards the completed Form W-7 and\n supporting documents to the IRS.\n2. Submitting Form W-7 through an IRS-approved Certified Acceptance Agent. A\n Certified Acceptance Agent is authorized to certify whether the documented proof is\n adequate and is not required to send the supporting documentation to the IRS. The Certified\n Acceptance Agent reviews the applicant\xe2\x80\x99s documentation, completes a certificate of\n accuracy, and forwards the certificate and Form W-7 to the IRS for processing. The\n Certified Acceptance Agent is required to keep copies of the documents for 3 years.\n3. Applying directly to the IRS.\n \xe2\x80\xa2 An individual can mail the Form W-7 with documentation\n to substantiate information reported on the Form W-7 and\n a completed tax return to the IRS Austin Campus 1 ITIN\n unit for processing.\n \xe2\x80\xa2 An individual can submit the Form W-7 personally to an\n IRS local office called a Taxpayer Assistance Center 2 with\n a completed tax return and documentation to substantiate The Taxpayer Assistance\n information reported on the Form W-7. Center employees Centers offer face-to-face\n review the Form W-7 for completeness and accuracy and assistance.\n practice due diligence when verifying the supporting The IRS provides service to\n documents. They also determine the need for a tax return millions of taxpayers yearly.\n or proof of prior filing with open ITIN issues. Center Taxpayers have the option of\n obtaining personal,\n employees send the Form W-7 and copies of the face-to-face tax assistance\n supporting documents to the Austin Campus ITIN unit for at 401 Taxpayer Assistance\n processing. 3 Centers nationwide. The\n IRS suggests taxpayers visit\n the Centers when they feel\n more comfortable talking\n with someone in person.\n\n1\n The data processing arm of the IRS. The campuses process paper and electronic submissions, correct errors, and\nforward data to the Computing Centers for analysis and posting to taxpayer accounts.\n2\n An IRS office with employees who answer questions, provide assistance, and resolve account-related issues for\ntaxpayers face to face.\n3\n Supporting documents are not forwarded for individuals under 18 years of age.\n Page 2\n\x0c Individual Taxpayer Identification Numbers Are\n Being Issued Without Sufficient Supporting Documentation\n\n\n\nThe IRS Austin, Texas, Campus processes all applications submitted by Agents and submitted\ndirectly to the IRS. Figure 1 shows the source of ITIN applications from January 1 through\nNovember 21, 2008.\n Figure 1: Source of ITIN Applications Processed From\n January 1 \xe2\x80\x93 November 21, 2008\n\n Volume of ITIN\n Percentage\n Applications by Source\n\n Direct Mail 1,167,136 75%\n\n Certified Acceptance Agent 362,870 23%\n Acceptance Agent 12,394 .8%\n Agent with No Designation 6,997 .5%\n Total 1,549,397 100%*\n Source: Data from the ITIN Real-Time System. *Does not total 100 percent due to rounding.\n\nAll Form W-7 applicants must meet certain documentation requirements. 4 An applicant can\nsubmit an original passport or a properly notarized or certified copy of a valid passport. If the\napplicant submits either of these, he or she does not need to submit any other documents. If an\napplicant does not have an original or certified copy of a passport, he or she must provide a\ncombination of current documents (at least two or more) that show a photograph and name\nsupporting the claim of identity and foreign status. With the exception of children less than\n14 years of age (less then 18 years of age if a student), at least 1 document must contain a recent\nphotograph. If an individual is requesting an ITIN as a dependent, unless a passport is\nsubmitted, documentation to prove foreign status and identity should include a birth certificate.\nThere has been a significant increase in the use of ITINs since the IRS began issuing them in\nTax Year 1996. Figure 2 shows a 247 percent increase in the number of individual income tax\nreturns filed using ITINs and reporting wages from Tax Years 2001 to 2008.\n\n\n\n\n4\n Appendix V contains a list of acceptable documents that can be used when applying for an ITIN.\n Page 3\n\x0c Individual Taxpayer Identification Numbers Are\n Being Issued Without Sufficient Supporting Documentation\n\n\n\n Figure 2: Growth of Tax Returns Filed\n Using ITINs and Reporting Wages\n\n Tax Year Tax Year Percentage\n 2001 2008 Change\n Paper-Filed Tax Returns 444,000 813,000 83%\n Electronically filed (e-filed) Tax Returns 86,000 1,028,000 1,095%\n Total Individual Income Tax Returns 530,000 1,841,000 247%\n Sources: Data for Tax Year 2001 were obtained from a prior Treasury Inspector General for\n Tax Administration report. 5 Data for Tax Year 2008 were obtained from analysis of the IRS\n Returns Transaction File as of June 18, 2009. 6 Data were rounded to the nearest thousand.\n\nTax returns filed with ITINs were not always allowed to be e-filed. However, if the ITIN was\nshown on the Wage and Tax Statement (Form W-2), the tax return could be e-filed. Due to\nprogramming changes, ITIN returns can now be e-filed.\nThis review was performed at the Wage and Investment Division Program Office in\nAtlanta, Georgia, and at the Austin Submission Processing Center in Austin, Texas. We\nconducted this performance audit in accordance with generally accepted government auditing\nstandards. Those standards require that we plan and perform the audit to obtain sufficient,\nappropriate evidence to provide a reasonable basis for our findings and conclusions based on our\naudit objective. We believe that the evidence obtained provides a reasonable basis for our\nfindings and conclusions based on our audit objective. Detailed information on our audit\nobjective, scope, and methodology is presented in Appendix I. Major contributors to the report\nare listed in Appendix II.\n\n\n\n\n5\n The Internal Revenue Service\xe2\x80\x99s Individual Taxpayer Identification Number Creates Significant Challenges for Tax\nAdministration (Reference Number 2004-30-023, dated January 8, 2004).\n6\n The Returns Transaction File contains all edited, transcribed, and error-corrected data from the U.S. Individual\nIncome Tax Returns (Form 1040 series) and related forms for the current processing year and 2 prior years.\n Page 4\n\x0c Individual Taxpayer Identification Numbers Are\n Being Issued Without Sufficient Supporting Documentation\n\n\n\n\n Results of Review\n\nIndividual Taxpayer Identification Numbers Were Issued Without\nSufficient Supporting Documentation\nA statistical sample of 658 Forms W-7 selected from 1.5 million application packages (cases)\nsubmitted from January 1 through November 21, 2008, showed 510 cases (78 percent) contained\nerrors. 7 Fifty-four (8 percent) of 658 cases contained errors that would not have prevented the\nissuance of an ITIN, for example, names on some supporting documents were inconsistent with\nthose of the Forms W-7 or the Forms W-7 were not dated. However, 456 (69 percent) of 658 of\nthe cases contained significant errors and/or raised concerns that, without follow up or\nresolution, should have prevented the issuance of ITINs.\nAs shown in Figure 3, the highest error rate (87 percent) was in applications submitted through\nCertified Acceptance Agents. 8 This includes instances in which the Agents did not provide the\ndocuments required to support the Forms W-7 submitted by them to the TIGTA. However, there\nwas also a significant error rate (35 percent) in application packages submitted to the IRS.\n Figure 3: Errors Identified in Application Packages Sampled\n Based on the Source of the Package\n Certified Certified\n Directly Mailed or Acceptance Acceptance\n Submitted to an Agent Residing in Agent Residing\n IRS Office the U.S. Outside the U.S. Totals\nCase Errors 43 35% 224 64% 141 75% 408\nDocuments Not Provided NA NA 81 23% 21 11% 102\nTotal Errors 43 35% 305 88% 162 87% 510\nNo Errors 80 65% 43 12% 25 13% 148\nTotal Application Packages 123 100% 348 100% 187 100% 658\nSource: Our analysis of Forms W-7 submitted and processed during the period January 1 through\nNovember 21, 2008. NA=Not applicable. Due to rounding the total percentages may not equal 100 percent.\n\n\n7\n The sample included cases from 2 populations: 123 applications mailed directly or submitted to an IRS office and\n535 applications submitted through Certified Acceptance Agents. A larger sample and a higher expected error rate\nwas used in the selection of Agents to consider the Agents that may not provide the requested documents. Appendix\nI provides details of our sampling methodology. Appendix VI provides a breakdown of the specific errors found in\nthe cases.\n8\n A sample of Acceptance Agents was selected from the ITIN data but after review the applications were\ndetermined to have been submitted by Certified Acceptance Agents and not Acceptance Agents.\n Page 5\n\x0c Individual Taxpayer Identification Numbers Are\n Being Issued Without Sufficient Supporting Documentation\n\n\n\nErrors identified in 456 cases that might have prevented the issuance of ITINs included the\nfollowing: 9\n \xe2\x80\xa2 443 (97 percent) supporting identification documents (e.g., passports, driver licenses,\n birth certificates, certificates of accuracy, and partnership agreements) were missing or\n were illegible. This includes 102 cases in which Certified Acceptance Agents did not\n provide documentation.\n \xe2\x80\xa2 106 (23 percent) signatures were missing from the Forms W-7.\n \xe2\x80\xa2 22 (5 percent) birth dates on identification documents were inconsistent with the birth\n dates on the Forms W-7.\nFigure 4 provides a breakdown of the income, credits, and taxes for the 708 tax returns 10\nassociated with the cases identified as having errors.\n Figure 4: Income, Credits, and Taxes for Cases With Errors\n\n Certified Certified\n Directly Mailed or Acceptance Agent Acceptance Agent\n Submitted to an Residing Residing Outside\n IRS Office in the U.S. the U.S.\n\n Adjusted Gross Income $1,595,607 $11,092,599 $2,307,158\n\n Taxable Income $322,706 $1,569,459 $1,934,879\n\n Child Tax Credit $20,263 $106,057 $1,200\n\n Additional Child Tax Credit $60,810 $586,838 $0\n\n Tax Withheld from Wages $59,292 $369,198 $373,325\n Refunds 61 ($109,688) 494 ($892,197) 73 ($103,102)\n Taxes Owed 6 ($5,133) 15 ($17,337) 1 ($5,053)\n No Additional Taxes Owed ***1*** 13 44\nSources: Data from the ITIN Real-Time System, the ITIN Program\xe2\x80\x99s management information system, and from the\nIRS Returns Transaction File for tax returns filed using ITINs and processed in Calendar Years 2008 and 2009.\n\n\n\n\n9\n Totals will not add to 456 and percentages will not total to 100 percent because most cases had more than 1 error.\n10\n Some ITIN cases had multiple tax returns filed in Calendar Years 2008 and 2009.\n Page 6\n\x0c Individual Taxpayer Identification Numbers Are\n Being Issued Without Sufficient Supporting Documentation\n\n\n\nEighty-seven percent of the sample of application packages submitted by\nCertified Acceptance Agents contained errors\nA Certified Acceptance Agent is authorized under an agreement with the IRS to submit a\nForm W-7 to the IRS on behalf of an ITIN applicant without furnishing supporting documentary\nevidence. Instead, in the certificates of accuracy, Agents certify to the IRS that they have\nreviewed the appropriate documentation evidencing the ITIN applicant\xe2\x80\x99s identity and alien\nstatus, and that they are maintaining a record of such documentation. In addition, Agents must\ncertify that, to the best of their knowledge and belief, the documentation is authentic, complete,\nand accurate. As part of the certification, Agents must describe the documentation upon which\nthey are relying. The certification is not binding on the IRS, and, in appropriate cases, the IRS\nmay request to see appropriate documentation before issuing an ITIN.\nIn addition, Certified Acceptance Agents agree to maintain a record of the documentation\nobtained and reviewed pursuant to the obligations set forth\nin the agreement. They are required to maintain all\ndocumentation submitted with respect to an ITIN Certified Acceptance Agents\napplicant for 3 years. submit only Forms W-7 and\n certificates of accuracy. They are\nIRS employees process, but do not review, documents not required to submit supporting\nsupporting the applications submitted by Certified documents, but must maintain\n them for 3 years and submit them\nAcceptance Agents. They input the information from the\n to the IRS upon request.\nForms W-7 into the ITIN management information\nsystem, the Real-Time System. If all requirements are\nmet, the ITIN is assigned systemically by the Real-Time System.\nWe requested copies of 535 application packages (Forms W-7, tax returns, and supporting\ndocuments) from Certified Acceptance Agents. From the IRS, we obtained the documents the\nCertified Acceptance Agents submitted to the IRS on behalf of the applicants. Eighty-seven\npercent (467 of 535) of the sample of application packages contained errors, for example: 11\n \xe2\x80\xa2 322 cases (69 percent) did not contain the documents required to issue an ITIN.\n Examples of required documents that were not provided include complete or legible\n photo identifications, school records, medical records, birth certificates, certificates of\n accuracy, and partnership agreements.\n \xe2\x80\xa2 159 Forms W-7 (34 percent) did not agree with the original Forms W-7 that were sent to\n the IRS. In some cases, it appeared the Agents had completed new forms. This could\n have happened because the Agents did not retain the original documents. Eleven\n (7 percent) of the 159 Forms W-7 were signed and dated prior to the Forms W-7 issue\n date.\n\n11\n The examples will not balance to the total errors because all errors were not included and most cases had more\nthan one error.\n Page 7\n\x0c Individual Taxpayer Identification Numbers Are\n Being Issued Without Sufficient Supporting Documentation\n\n\n\n \xe2\x80\xa2 109 cases (23 percent) did not contain copies of partnership agreements. ITIN applicants\n residing in a foreign country who are partners in U.S. businesses are subject to\n information reporting and Federal tax withholding requirements. Foreign partnerships\n may conduct business in the U.S., and invest and own U.S. assets that generate income;\n therefore, they must obtain ITINs to report income. Partnership agreements are required\n when applying for ITINs to ensure the partnership exists and the applicant is a member of\n a foreign partnership or a U.S. partnership with 10 or more partners. Documentation\n includes the partnership name, Employee Identification Number, and a statement that the\n applicant is a member of the partnership.\n \xe2\x80\xa2 102 (22 percent) Forms W-7 and supporting documents were not provided to us when we\n requested them from the Certified Acceptance Agents. They did not comply with our\n requests for copies of the application packages and did not provide any documents.\n \xe2\x80\xa2 84 cases (18 percent) did not contain the required certificates of accuracy or the\n certificates were missing required information and/or signatures.\nThe IRS relies on Certified Acceptance Agents to ensure applicants meet all requirements\nThe IRS accepts Forms W-7 and supporting documents submitted by Certified Acceptance\nAgents without reviewing or evaluating them. However, a review of the application packages in\nour sample found instances where the Forms W-7 and a certificate of accuracy were accepted\nwith questionable information. For example,\n \xe2\x80\xa2 ********************************1*************************************\n **********************************************************************\n **********************************************************************\n **********************************************************************.\n \xe2\x80\xa2 ******************************1***************************************\n **********************************************************************\n ***.\nThe IRS stated that there are no internal guidelines requiring that the certificate of accuracy and\nthe information on the Form W-7 be reviewed for accuracy. However, the certificate of accuracy\nis not binding on the IRS, and the IRS may request to see appropriate documentation before\nissuing an ITIN.\nIn another instance, *****************************1*******************************\n*****************************************************************************\n*****************************************************************************\n****************************************************************************\n****************************************************************************\n*********************************************************************.\n\n Page 8\n\x0c Individual Taxpayer Identification Numbers Are\n Being Issued Without Sufficient Supporting Documentation\n\n\n\nThe IRS does not have a Certified Acceptance Agent compliance review process\nSince Fiscal Year 2003, the Treasury Inspector General for Tax Administration has reported that\nthe IRS has not performed any compliance reviews or monitoring visits to ensure that Agents are\ncomplying with all laws and regulations when submitting Forms W-7. 12 In response to the report\nissued in June 2009, the ITIN Program Office stated that it is currently working with the Small\nBusiness/Self-Employed Division Examination Policy function to develop a compliance review\nprocess.\nConsidering the error rate of application packages submitted by Certified Acceptance Agents in\nthis review, the risk is high that without an active and aggressive compliance program ITINs are\nbeing issued without the proper supporting documents. The IRS needs to ensure that it\nimplements a comprehensive compliance program or reconsider the feasibility of the Certified\nAcceptance Agent Program.\n\nThirty-five percent of the sample of application packages submitted directly to the\nIRS contained errors\nIRS employees review and process applications submitted directly to the IRS. Employees\nreview the Form W-7 and the supporting documentation and contact the individual, via mail,\nnotifying them of the ITIN or requesting additional information required to substantiate the\nForm W-7.\nThirty-five percent (43 of 123) of the application packages sampled that were submitted directly\nto the IRS by mail or through Taxpayer Assistance Centers contained errors. The errors ranged\nfrom missing and illegible documents to inconsistencies between the Forms W-7 and the\nsupporting documents. This happened for many reasons.\n \xe2\x80\xa2 The documents are numerous and complex and in some instances unique to each\n taxpayer.\n \xe2\x80\xa2 Employees are not experts in determining whether documents are legitimate or whether\n signatures are valid.\n \xe2\x80\xa2 Employees process a large volume of Forms W-7 in a short time period. The majority of\n ITIN applications are submitted during the filing season 13 so individuals can timely file\n their tax returns. However, this is the busiest time for the IRS. In addition, the IRS hires\n seasonal employees to assist with Forms W-7 peak processing; therefore, employees with\n less experience process these Forms.\n\n12\n Management Oversight of the Acceptance Agent Program Is Needed to Assure that Individual Taxpayer\nIdentification Numbers Are Properly Issued (Reference Number 2003-30-020, dated November 6, 2002) and\nInadequate Management Information Has Adversely Affected the Acceptance Agent Program (Reference\nNumber 2009-40-087, dated June 19, 2009).\n13\n The period from January through mid-April when most individual income tax returns are filed.\n Page 9\n\x0c Individual Taxpayer Identification Numbers Are\n Being Issued Without Sufficient Supporting Documentation\n\n\n\nEmployees have also expressed concerns that they are required to process a Form W-7 for an\nindividual when it appears the wage earner is using another individual\xe2\x80\x99s Social Security Number\nto work. Taxpayers applying for an ITIN do not qualify for a Social Security Number. The\nForm W-2 attached to the tax return and application contains a Social Security Number.\nThe IRS attempted to mitigate some of the challenges by reducing the number of acceptable\ndocuments from 40 to 13. The IRS provided necessary training to identify legitimate documents,\nbut does not require employees to be experts in determining whether documents contain valid\nsignatures. Also, the IRS stated it has a good returning base of seasonal employees and in\npreparation for the 2009 Filing Season increased the classroom training time.\n\nSupporting documents are complex and guidelines are inconsistent\nAlthough only 13 types of documents are acceptable to support the Form W-7 and issue an ITIN,\nthese documents may not be in English, vary according to the country in which they were issued,\nand, particularly for medical and school records, are unique to the individual. Medical and\nschool records are most often used to verify that children meet the requirements. Of\n658 applications sampled, 213 (32 percent) applications were for children.\nThese IRS employees are not auditors and are required to ensure only the validity of the\nsupporting documents, not validate all the information used to support the Form W-7.\nGuidelines do not require that they validate age, even though date of birth is a required field.\nNeither are they required to validate the date of entry into the U.S. A review of the sample of\napplication packages showed the date of entry sometimes conflicts with school records, which\nshows applicants were attending school in foreign countries at the time they entered the U.S.\nAccording to an IRS official, it is possible that the dependent attended school in a foreign\ncountry but returns to the U.S. during school breaks.\nInconsistent guidelines create confusion for taxpayers and Agents in attempting to comply with\nthe proper preparation of a Form W-7 and determining the identification documents needed to\nsupport the issuance of an ITIN, for example:\n \xe2\x80\xa2 The Form W-7 instructions, Understanding Your IRS - Individual Taxpayer\n Identification Number ITIN (Publication 1915), and a notice sent from the IRS to the\n taxpayer requesting additional information to support the Form W-7 application state that\n if an applicant is 14 years of age or older, the applicant can sign or appoint an authorized\n agent, including the parent, to sign. The authorized agent or parent must attach Power of\n Attorney and Declaration of Representative (Form 2848). However, IRS internal\n guidelines do not require a Form 2848 for a parent who is signing for a child.\n \xe2\x80\xa2 The Publication 1915 provides information used for completing the Form W-7 and\n instructs the applicant to use the most current Form W-7 or it will be rejected. However,\n the actual Form W-7 instructions only state to use Form W-7 to apply for an ITIN. In\n addition, IRS internal guidelines allow tax examiners to accept older versions.\n\n Page 10\n\x0c Individual Taxpayer Identification Numbers Are\n Being Issued Without Sufficient Supporting Documentation\n\n\n\nThe IRS has acknowledged these two discrepancies and is taking actions to revise\nPublication 1915 and Form W-7 instructions to ensure consistency.\nIn another instance, Publication 1915 and instructions for completing Form W-7 instructs the\napplicant to enter the date of entry to the U.S. However, IRS internal guidelines state:\n A date of entry is not required if W-7 reason box d [Dependent of U.S. citizen/resident alien] is\n checked and applicant is a resident of Canada, India, or Mexico or when box e [Spouse of U.S.\n citizen/resident alien] is checked and Form 1040 is filed either as married filing separately of (sic)\n married filing jointly with a spouse who is a U.S. citizen or resident and the NRA spouse applicant\n is both listed and claimed as an exemption on the return.\n\nThe Government Accountability Office Standards for Internal Control in the Federal\nGovernment 14 requires that the agency assess the risks it faces from both external and internal\nsources. The agency must establish clear, consistent objectives and should consider all\nsignificant interactions between the entity and other parties to identify risks. Guidelines need to\nbe clear and consistent to reduce risks inherent to the ITIN Program and ensure ITINs are issued\nonly to appropriate individuals.\n\nThe volume of ITINs is growing, increasing the risk that fraudulent tax returns\nusing ITINs could be submitted\nTotal ITIN tax returns have grown 247 percent from Tax Year 2001 to 2008. Many of these tax\nreturns claim dependency exemptions and the Child Tax Credit and Additional Child Tax Credit.\nTo qualify for these Credits, a child must meet certain tests. The residency test is of particular\nimportance for children who have an ITIN. The only way a child with an ITIN can qualify for\nthese Credits is to be a resident of the U.S. 15\nThe maximum amount that can be claimed for the Child Tax Credit is $1,000 for each qualifying\nchild. The Additional Child Tax Credit is a refundable tax credit and is for certain individuals\nwho get less than the full amount of the Child Tax Credit. The Additional Child Tax Credit\nprovides the taxpayer with a refund when no tax is owed. The IRS provides this example on\nIRS.gov:\n The taxpayers have two qualifying children, income of $86,000, and a tax liability of $500.\n Because their tax liability is less than the initial child tax credit ($2,000) they may be able to take\n the refundable Additional Child Tax Credit of $1,500 ($2,000-$500).\n\nEmployees processing Forms W-7 are not tax auditors and cannot determine whether a\ndependent qualifies to be claimed on the tax return, therefore allowing the taxpayer to receive a\ndependency exemption and possibly the Child Tax Credit and Additional Child Tax Credit.\n\n\n14\n Standards for Internal Control in the Federal Government (GAO/AIMD-00-21.3.1, dated November 1999).\n15\n Internal Revenue Code Section 24. See Appendix VII for a list of the requirements to claim the Child Tax Credit\nand Additional Child Tax Credit.\n Page 11\n\x0c Individual Taxpayer Identification Numbers Are\n Being Issued Without Sufficient Supporting Documentation\n\n\n\nSince Fiscal Year 2005, the Program Office has been monitoring the usage of the Credits on tax\nreturns submitted with Forms W-7. The Program\nOffice, in conjunction with the IRS Examination During Fiscal Year 2007, the IRS\nfunction, initiated a review of approximately Examination function audited and closed\n93,000 of these tax returns. The Examination 3,161 cases, changing almost 50 percent\nfunction subsequently initiated audits and has of these cases and assessing an average\n of $2,156 in additional tax per case.\nincluded this initiative in its strategic plan. During\nFiscal Year 2007, the Examination function\naudited and closed 3,161 cases, changing almost\n50 percent of these cases and assessing an average of $2,156 in additional tax per case.\nThe Program Office is also working with the IRS Criminal Investigation Division on several\nITIN tax schemes. Calendar Year 2008 schemes being worked by the Criminal Investigation\nDivision involve 14,636 ITIN tax returns and $42 million in refunds claimed. More than\n1,000 (7 percent) of the 14,636 ITIN tax returns involved in schemes had ITINs issued with the\nassistance of Agents. These schemes involved $3.1 million in refunds. ************1****************\n****************************************************************************\n*******.\nIn March 2009, we reported that ITIN filers are receiving billions of dollars in Child Tax Credits\nand Additional Child Tax Credits intended for working families although these individuals are\nnot authorized to work in the U.S. 16 Figure 5 provides a breakdown of the characteristics and\nprojections for our statistical sample of ITIN applications for 1,171,355 individual tax returns\nusing ITINs that were assigned January 1 through November 21, 2008. There is a potential that\nthese tax returns could result in $412,454,748 in refunds and that over 5 calendar years\n$2,062,273,740 in revenue could be protected.\n\n\n\n\n16\n Actions Are Needed to Ensure Proper Use of Individual Taxpayer Identification Numbers and to Verify or Limit\nRefundable Credit Claims (Reference Number 2009-40-057, dated March 31, 2009).\n Page 12\n\x0c Individual Taxpayer Identification Numbers Are\n Being Issued Without Sufficient Supporting Documentation\n\n\n\n Figure 5: Projections of Income, Credits, and Taxes of Tax Returns\n Filed Using ITINs Assigned January 1 through November 21, 2008\n\n Certified\n Directly Mailed or Certified Acceptance\n Acceptance Agent\n Submitted to an IRS Agent Residing\n Residing Outside\n Office in the U.S.\n the U.S.\n\nAdjusted Gross Income $15,140,572,126 $10,899,147,898 $258,340,007\n\nTaxable Income $3,062,128,374 $1,542,088,176 $216,654,713\n\nChild Tax Credit $192,273,795 $104,207,402 $134,368\n\nAdditional Child Tax Credit $577,024,922 $576,603,748 $0\n\nTax Withheld From Wages $562,616,485 $22,214,474 $41,802,418\n\nRefunds Due $1,040,819,623 $876,637,392 $11,544,667\n\nBalance Due $48,706,578 $17,034,649 $565,801\nTotal Refunds Without\nChild Tax Credit and $222,818,598 $178,791,691 $10,844,458\nAdditional Child Tax Credit\nNo Additional Taxes Owed\n 9,489 12,773 4,927\n(Tax Returns)\nSource: Analysis of tax returns filed using ITINs and processed in Calendar Years 2008 and 2009.\n\nIn a prior report issued March 31, 2009, the Treasury Inspector General for Tax Administration\nrecommended that legislation is needed to clarify whether or not refundable tax credits such as\nthe Additional Child Tax Credit may be paid to filers without a Social Security Number and, if\nthese credits may not be paid, to provide IRS math error authority to disallow associated claims\nfor the credits. 17 The IRS agreed and will discuss with the Office of Tax Policy, Department of\nthe Treasury, the merits of an administration proposal to amend the Internal Revenue Code to\nlimit eligibility for the Child Tax Credit and Additional Child Tax Credit to individuals who\nhave a Social Security Number issued by the Social Security Administration rather than a\nnumber issued to an alien not authorized to work in the U.S.\n\n\n\n\n17\n Actions Are Needed to Ensure Proper Use of Individual Taxpayer Identification Numbers and to Verify or Limit\nRefundable Credit Claims (Reference Number 2009-40-057, dated March 31, 2009).\n Page 13\n\x0c Individual Taxpayer Identification Numbers Are\n Being Issued Without Sufficient Supporting Documentation\n\n\n\nRecommendations\nThe Commissioner, Wage and Investment Division, should revise:\nRecommendation 1: Guidelines related to processing applications submitted by Certified\nAcceptance Agents to ensure that the Forms W-7 match the information on the certificates of\naccuracy before issuing ITINs, and that any supporting documents submitted with the certificates\nof accuracy are reviewed with the same due diligence as required for Forms W-7 and supporting\ndocuments submitted directly to the IRS by individual applicants.\n Management\xe2\x80\x99s Response: The IRS agreed with this recommendation and has taken\n steps to revise Form W-7 instructions, Acceptance Agents Guide for Individual Taxpayer\n Identification Number (Publication 4520), and internal guidelines to ensure consistency\n in these areas.\nRecommendation 2: Guidelines related to processing applications submitted directly to the\nIRS to ensure that all information on the Forms W-7 is validated and consistent with supporting\ndocumentation. For example, employees should validate the gender, age, and date of entry.\n Management\xe2\x80\x99s Response: The IRS agreed with this recommendation and will\n update guidance to ensure the information on the Form W-7, required to verify the\n applicant\xe2\x80\x99s identity, is validated and consistent with what is shown on supporting\n documentation.\nRecommendation 3: Guidelines to ensure that the instructions for completing the Form W-7\nand internal guidelines are consistent by clarifying who is required to complete a power of\nattorney, clarifying that prior versions of Form W-7 may be acceptable, and requiring that\nemployees verify qualified applicants provide an entry date to the U.S.\n Management\xe2\x80\x99s Response: The IRS agreed with this recommendation and has taken\n steps to revise Form W-7 instructions, Publications 1915 and 4520, and internal\n guidelines to ensure consistency in these areas.\n\nThe Same Individual Taxpayer Identification Numbers Are Being Used\nby More Than One Taxpayer on Multiple Tax Returns\nAs with Social Security Numbers, ITINs are specific to individuals and should be issued to and\nused by only one individual. However, there are no controls when tax returns are filed to prevent\nan ITIN from being used by more than one taxpayer on multiple tax returns. The IRS has a\ncompliance control after the tax return is processed and the refund is issued to determine which\ntaxpayer should be allowed to claim a dependent.\nMore than 60,000 ITINs were assigned and used on multiple tax returns processed in Calendar\nYear 2008. Multiple ITINs were used on 121,601 tax returns \xe2\x80\x93 76,998 (63 percent) ITINs were\n\n Page 14\n\x0c Individual Taxpayer Identification Numbers Are\n Being Issued Without Sufficient Supporting Documentation\n\n\n\nused for dependents, 31,287 (26 percent) were used for secondary taxpayers (spouses), and\n13,316 (11 percent) were used for primary taxpayers. 18 Seventy-one percent (86,736) were\nsubmitted using a paper tax return while 29 percent (34,865) were e-filed.\n**************************************1***********************************\n**************************************************************************\n**************************************************************************\n*************************************. Figure 6 provides total refunds, balance dues,\nand no taxes owed for the 60,333 tax returns where the same ITINs were used on multiple tax\nreturns. A total of 72,333 multiple ITINs used on 121,601 multiple tax returns allowed\n$175,815,700 in refunds for Calendar Year 2008. Because this could be a recurring issue, a\ndetermination was made that over 5 calendar years, revenue could be increased by $879,078,500.\n Figure 6: 2007 Tax Returns With Multiple ITINS\n Number of Number of Tax\n Amount\n ITINs 19 Returns Filed\n Refunds 55,610 102,303 $202,271,388\n Balance Due 12,789 14,914 $26,455,688\n No Taxes Owed 3,934 4,384 -----\n Sources: Data from the ITIN Real-Time System and from the IRS Returns Transaction\n File for tax returns filed using ITINs and processed in Calendar Year 2008.\n\nThere has been a reduction in the number of multiple ITINs issued to the same\ntaxpayer\nA recent IRS study 20 identified that 4 percent of individuals applying for ITINs already had an\nITIN assigned to them and that 30 percent of these individuals were assigned multiple ITINs.\nThe study further estimated that approximately $60 million per year in erroneous refunds were\nissued for ITIN cases routed to the Accounts Management function. ********1***********\n***************************************************************************\n*************************************************. The IRS study reported that the\n\n\n\n18\n The primary taxpayer is the first name and Social Security Number reported on an individual tax return. If a joint\nreturn is filed, a secondary taxpayer is the second name and Social Security Number (e.g., spouse, reported on the\nreturn). A dependent is a person, other than a primary or secondary taxpayer, for whom you can claim an exemption\nand is reflected in the Exemption section of a tax return.\n19\n The same ITIN could have been used on more than 1 type of tax return; refunds, balance due, or no taxes owed\nand will not total to 60,333 ITINs.\n20\n IRS Lean Six Sigma study entitled, Individual Taxpayer Identification Number, Control Tollgate, dated\nFebruary 21, 2008. The data contained in the study were collected in October and November 2007 and were not\nstatistically valid for the entire applicant pool.\n Page 15\n\x0c Individual Taxpayer Identification Numbers Are\n Being Issued Without Sufficient Supporting Documentation\n\n\n\nprocess used to ensure that multiple ITINs are not assigned to the same individual was\ninefficient.\nThe IRS is attempting to reduce duplicate ITINs by streamlining its prescreening process.\nStarting January 2008, employees check for duplicate status before inputting the ITIN\napplication data and flag potential duplicates for further research. The IRS cites that the new\nprocedures have reduced the percentage of individuals being assigned a duplicate ITIN from\n30 percent to 6 percent. Using the same prescreening process the employees used, the IRS\nconducted a review of duplicates during the period of June 3 through 12, 2009. The results\nshowed the requests for duplicate ITINs were 671 (18 percent) of the 3,668 requests. However,\nof the 671 ITINs, 3 percent were still missed during the prescreening process and duplicate\nITINs were issued. The IRS did not record the ITINs for the 3 percent that resulted in\nduplicates; therefore, it cannot be determined which ITINs needed to be resolved.\n\nRecommendation\nRecommendation 4: The Commissioner, Wage and Investment Division, should develop\ncontrols to prevent ITINs from being used on multiple tax returns, including ITINs used for\nsecondary taxpayers and dependents.\n Management\xe2\x80\x99s Response: The IRS disagreed with this recommendation stating that\n tax returns submitted with a duplicate secondary/dependent ITIN are subject to\n compliance review after the return is processed and corrected as necessary, similar to\n duplicate Social Security Number use.\n Office of Audit Comment: The compliance review is not a 100 percent review and\n only a small number of ITIN tax returns are subject to audit and would be corrected. We\n believe controls should be developed during processing and before the tax refunds are\n issued. This is comparable to how the IRS ensures dependents are not claimed on more\n than one tax return. During the processing of electronic tax returns, the IRS will, with\n some exceptions, reject the second tax return submitted that used a duplicate Social\n Security Number.\n\nThe Real-Time System Contains Inaccurate Data and Is Insufficient to\nOversee the Program\nThe IRS states that the Real-Time System provides a one-stop service for processing Forms W-7\nand issuing ITINs. The System processes Forms W-7 in real-time and assigns the ITIN or\ncreates reject or suspense Forms W-7 automatically. Nevertheless, the information does not\naccurately reflect what type of agent submitted the Forms W-7 and does not accurately reflect\nthe information captured from the Forms W-7.\n\n\n Page 16\n\x0c Individual Taxpayer Identification Numbers Are\n Being Issued Without Sufficient Supporting Documentation\n\n\n\nResearch on the Real-Time System for 547 cases in our statistical sample found that 270 records\n(49 percent) contained inaccurate information relating to what type of Agent submitted the\napplication.\n \xe2\x80\xa2 136 Forms W-7 (25 percent) were listed on the Real-Time System as submitted by\n Acceptance Agents when they were actually submitted by Certified Acceptance Agents.\n \xe2\x80\xa2 134 Forms W-7 (24 percent) were listed on the Real-Time System with no designation of\n the type of agent but were actually submitted by Certified Acceptance Agents.\nThe IRS does not know the volume of Forms W-7 that are submitted by Certified Acceptance\nAgents and, if not corrected, approximately 200 Certified Acceptance Agents may not be\nincluded in any compliance activity.\nInformation reflected on 110 (20 percent) of the 547 Forms W-7 was not transcribed correctly to\nthe Real-Time System. Transcription errors included incorrect identification documents, birth\ndates, codes/reasons for submitting the Forms W-7, names, and/or addresses. Figure 7 provides\na breakdown of the number of transcription errors for the statistically valid samples. There is a\npotential that 318,107 taxpayer ITIN Forms W-7 were incorrectly input into the IRS Real-Time\nSystem (1,590,535 projected over 5 years).\n Figure 7: Errors Identified on the Real-Time System\n\n Certified\n Directly Certified\n Acceptance\n Mailed or Acceptance\n Acceptance Blank Agent\n Submitted Agent Total\n Agent Designation Residing\n to an IRS Residing\n Outside the\n Office. in the U.S.\n U.S.\n Errors 24 18% 24 18% 28 23% 11 12% 23 37% 110\n No Errors 112 82% 110 82% 95 77% 80 88% 40 63% 437\n Totals 136 100% 134 100% 123 100% 91 100% 63 100% 547\nSource: Our analysis of Forms W-7 submitted during the period January 1 through November 21, 2008.\n\nThe Forms W-7 submitted by the Certified Acceptance Agents are accepted without a review.\nThe certificates of accuracy are not matched to the Forms W-7 and, in other instances, the\nAgents attach documents that do not match the Form W-7 information.\nFor example, ********************************1******************************\n************************************************************************. **\n***************************************************************************\n****************************************************************************\n****************************************************************************\n********************************************. In both instances, the ITIN was issued.\n\n Page 17\n\x0c Individual Taxpayer Identification Numbers Are\n Being Issued Without Sufficient Supporting Documentation\n\n\n\nThe Government Accountability Office Standards for Internal Control in the Federal\nGovernment states that relevant, reliable, and timely information is needed in order to achieve\nprogram objectives. The IRS needs to improve its Real-Time System and its management\ncontrols to effectively manage the ITIN Program. The IRS does not have sufficient management\ninformation concerning the volume or type of Agents that submit ITIN applications to the IRS.\nAdditionally, the IRS does not validate and input all Form W-7 information. Without this\ninformation, the IRS may not know where to focus resources or compliance reviews that are\nbeing planned.\n\nRecommendations\nThe Commissioner, Wage and Investment Division, should:\nRecommendation 5: Ensure the data on the Real-Time System are accurate and validate the\nrecords that indicate an agent submitted the application to ensure that the ITIN Program has\naccurate and reliable data to oversee the Program.\n Management\xe2\x80\x99s Response: The IRS agreed with this recommendation and is taking\n corrective actions to update the Real-Time System. These actions are contingent on\n funding.\nRecommendation 6: Develop procedures and internal controls to monitor the Real-Time\nSystem to ensure information entered is accurate.\n Management\xe2\x80\x99s Response: The IRS agreed with this recommendation and is taking\n corrective actions to update the Real-Time System with viable report capability which\n will allow the ITIN Program Office to appropriately monitor the Real-Time System to\n ensure the information entered is accurate. This action is contingent on funding.\n However, the IRS disagreed with our estimate in Appendix IV that 318,107 taxpayer\n ITIN Forms W-7 were incorrectly input into the IRS Real-Time System. The IRS stated\n the outcome measure was based on an incorrect calculation\xe2\x80\x94that 318,017 should be\n 311,579 based on its calculation of (110/547) x 1,549,397.\n Office of Audit Comment: The IRS\xe2\x80\x99 calculation does not incorporate the weighting\n of the strata. The 318,017 taxpayers were calculated using 5 strata, and the errors were\n based on each stratum and then totaled. See Appendix IV for details.\n\n\n\n\n Page 18\n\x0c Individual Taxpayer Identification Numbers Are\n Being Issued Without Sufficient Supporting Documentation\n\n\n\n Appendix I\n\n Detailed Objective, Scope, and Methodology\n\nThe overall objective of this review was to determine whether Applications for IRS Individual\nTaxpayer Identification Number (Form W-7) were efficiently and effectively processed and\nITINs were appropriately issued. To accomplish the objective, we:\nI. Determined whether the Austin, Texas, Campus 1 is ensuring Forms W-7 are efficiently\n and effectively processed and ITINs appropriately issued.\n A. Randomly selected 658 cases listed on the Real-Time System using 3 statistically\n valid samples of Forms W-7 submitted to the IRS during the period January 1 through\n November 21, 2008. The Forms W-7 were mailed to us from the Federal Records\n Center for sample 1 and letters were mailed to Certified Acceptance Agents residing\n in the U.S. and to Certified Acceptance Agents residing outside the U.S. for samples\n 2 and 3. We determined the accuracy of the Forms W-7 and the supporting\n documentation.\n 1. Randomly selected a sample of 138 Forms W-7 from a population of 1,167,136\n that were identified on the Real-Time System as being directly mailed to an\n IRS office. Our sample size was selected based on a 10 percent error rate, a\n \xc2\xb15 percent precision rate, and a 95 percent confidence level. The sample was\n originally 138 but 15 cases were dropped from the sample because documentation\n was not provided, which limited the sample to 123.\n 2. Randomly selected a statistically valid sample of 349 Forms W-7 from a\n population of 341,931 that were identified on the Real-Time System as being\n submitted to the IRS by a domestic Certified Acceptance Agent. Our sample size\n was selected based on a 35 percent error rate, a \xc2\xb15 percent precision rate, and a\n 95 percent confidence level. One case was dropped from the sample limiting the\n sample to 348. We contacted the Certified Acceptance Agents to obtain copies of\n the Forms W-7, tax returns, and supporting documents. The 35 percent error\n rated was used based on the expected number of Agents that may not respond to\n our request for information.\n 3. Randomly selected a statistically valid sample of 194 Forms W-7 from a\n population of 20,939 that were identified on the Real-Time System as being\n submitted to the IRS by a foreign Certified Acceptance Agent. Our sample size\n\n1\n The data processing arm of the IRS. The campuses process paper and electronic submissions, correct errors, and\nforward data to the Computing Centers for analysis and posting to taxpayer accounts.\n Page 19\n\x0c Individual Taxpayer Identification Numbers Are\n Being Issued Without Sufficient Supporting Documentation\n\n\n\n\n was selected based on a 15 percent error rate, a \xc2\xb15 percent precision rate, and a\n 95 percent confidence level. Seven cases were dropped from this sample limiting\n the sample to 187. We contacted the Certified Acceptance Agents to obtain\n copies of the Forms W-7, tax returns, and supporting documents. The 15 percent\n expected error rate was used based on the expected number of Agents that may\n not respond to our request for information.\nB. Randomly selected 547 cases listed on the Real-Time System using 5 statistically\n valid samples of Forms W-7 submitted to the IRS during the period January 1 through\n November 21, 2008. Case information was compared to the data entered on the\n Real-Time System. The random selections of samples were selected by using\n computer software and applying a random number indicator to select the samples.\n The Federal Records Center mailed the Forms W-7 to us.\n 1. Randomly selected a sample of 138 Forms W-7 from a population of 1,167,136\n that were identified on the Real-Time System as being directly mailed to an IRS\n office. Our sample size was selected based on a 10 percent error rate, a\n \xc2\xb15 percent precision rate, and a 95 percent confidence level. The sample was\n originally 138 but 15 cases were dropped from the sample limiting the sample\n to 123.\n 2. Randomly selected a statistically valid sample of 94 Forms W-7 that were\n submitted to the IRS by a domestic Certified Acceptance Agent from a population\n of 341,931. Our sample size was selected based on a 10 percent error rate, a\n \xc2\xb15 percent precision rate, and a 90 percent confidence level. The Forms W-7\n were mailed to us from the Federal Records Center and we selected the first cases\n received. Three cases were dropped from the sample limiting the sample to 91.\n 3. Randomly selected a statistically valid sample of 66 Forms W-7 that were\n submitted to the IRS by a foreign Certified Acceptance Agent from a population\n of 20,939. Our sample size was selected based on a 7 percent error rate, a\n \xc2\xb15 percent precision rate, and a 90 percent confidence level. Three cases were\n dropped from the sample limiting the sample to 63.\n 4. Randomly selected a statistically valid sample of 137 Forms W-7 from a\n population of 12,394 that were identified on the Real-Time System as being\n submitted to the IRS by an Acceptance Agent. Our sample size was selected\n based on a 10 percent error rate, a \xc2\xb15 percent precision rate, and a 95 percent\n confidence level. The Forms W-7 were mailed to us from the Federal Records\n Center and we selected the first cases received. Once received, we determined\n that Certified Acceptance Agents had submitted the Forms W-7. One Form W-7\n was not received limiting the sample to 136.\n\n Page 20\n\x0c Individual Taxpayer Identification Numbers Are\n Being Issued Without Sufficient Supporting Documentation\n\n\n\n 5. Randomly selected a statistically valid sample of 136 Forms W-7 from a\n population of 6,997 with no designations on the Real-Time System. Our sample\n size was selected based on a 10 percent error rate, a \xc2\xb15 percent precision rate, and\n a 95 percent confidence level. Two cases were not received and the sample was\n limited to 134.\n C. Selected two samples from the cases in Step I.B. to determine the accuracy of the\n Real-Time System. Case information was compared to the data entered on the\n Real-Time System. The Forms W-7 were mailed to us from the Federal Records\n Center. To select the samples we:\n 1. Randomly selected a statistically valid sample of 137 Forms W-7 from a\n population of 12,394 that were identified on the Real-Time System as being\n submitted to the IRS by an Acceptance Agent. Our sample size was selected\n based on a 10 percent error rate, a \xc2\xb15 percent precision rate, and a 95 percent\n confidence level. Additional research determined these were not submitted by\n Acceptance Agents, but were submitted by Certified Acceptance Agents. The\n requirements for the sample for Certified Acceptance Agents had already been\n met. One Form W-7 was not received limiting the sample to 136.\n 2. Randomly selected a statistically valid sample of 136 Forms W-7 from a\n population of 6,997 with no designations on the Real-Time System. There was no\n designation reflected on the Real-Time System of whether a Certified Acceptance\n Agent or Acceptance Agent had submitted the application package. Our sample\n size was selected based on a 10 percent error rate, a \xc2\xb15 percent precision rate, and\n a 95 percent confidence level. Review of the documents found the cases to be\n submitted by Certified Acceptance Agents. The requirements for the sample for\n Certified Acceptance Agents had already been met. Two cases were not received\n and the sample was limited to 134.\nII. Conducted computer analysis to identify from the Returns Transaction File 2 individual\n income tax returns processed in Calendar Years 2008 and 2009 that were filed reflecting\n a primary, secondary, and/or dependent with an ITIN. We assessed the reliability of the\n Returns Transaction File by performing run-to-run balancing and verifying a sample of\n all fields against the IRS Integrated Data Retrieval System. 3\nIII. Determined whether the IRS has implemented controls to reduce the number of duplicate\n ITINs from being issued.\n\n\n2\n The Returns Transaction File contains all edited, transcribed, and error-corrected data from the U.S. Individual\nIncome Tax Returns (Form 1040 series) and related forms for the current processing year and 2 prior years.\n3\n IRS computer system capable of retrieving or updating stored information; it works in conjunction with a\ntaxpayer\xe2\x80\x99s account records.\n Page 21\n\x0c Individual Taxpayer Identification Numbers Are\n Being Issued Without Sufficient Supporting Documentation\n\n\n\n Appendix II\n\n Major Contributors to This Report\n\nMichael E. McKenney, Assistant Inspector General for Audit (Returns Processing and Account\nServices)\nAugusta R. Cook, Director\nLena Dietles, Audit Manager\nRoberta Fuller, Lead Auditor\nJean Bell, Senior Auditor\nKenneth Carlson, Senior Auditor\nTracy Harper, Senior Auditor\nPatricia Jackson, Senior Auditor\nKathy Coote, Auditor\nJerry Douglas, Auditor\nMary Keyes, Auditor\nNelva Usher, Auditor\n\n\n\n\n Page 22\n\x0c Individual Taxpayer Identification Numbers Are\n Being Issued Without Sufficient Supporting Documentation\n\n\n\n Appendix III\n\n Report Distribution List\n\nCommissioner C\nOffice of the Commissioner \xe2\x80\x93 Attn: Chief of Staff C\nDeputy Commissioner for Operations Support OS\nDeputy Commissioner for Services and Enforcement SE\nDeputy Commissioner, Wage and Investment Division SE:W\nDirector, Customer Account Services, Wage and Investment Division SE:W:CAS\nDirector, Customer Assistance, Relationships, and Education, Wage and Investment Division\nSE:W:CAR\nDirector, Strategy and Finance, Wage and Investment Division SE:W:S\nSenior Operations Advisor, Wage and Investment Division SE:W:S\nDirector, Submission Processing, Wage and Investment Division SE:W:CAS:SP\nChief, Program Evaluation and Improvement, Wage and Investment Division SE:W:S:RPA:PEI\nChief Counsel CC\nNational Taxpayer Advocate TA\nDirector, Office of Legislative Affairs CL:LA\nDirector, Office of Program Evaluation and Risk Analysis RAS:O\nOffice of Internal Control OS:CFO:CPIC:IC\nAudit Liaison: Chief, Program Evaluation and Improvement, Wage and Investment Division\nSE:W:S:PRA:PEI\n\n\n\n\n Page 23\n\x0c Individual Taxpayer Identification Numbers Are\n Being Issued Without Sufficient Supporting Documentation\n\n\n\n Appendix IV\n\n Outcome Measures 1\n\n\n\n\nThis appendix presents detailed information on the measurable impact that our recommended\ncorrective actions will have on tax administration. These benefits will be incorporated into our\nSemiannual Report to Congress.\n\nType and Value of Outcome Measure:\n\xe2\x80\xa2 Revenue Protection \xe2\x80\x93 Potential; $412,454,748 in tax refunds related to 690,658 Applications\n for IRS Individual Taxpayer Identification Number (Form W-7) attached to\n 1,171,355 individual tax returns processed in Calendar Years 2008 or 2009;\n $2,062,273,740 projected over 5 years (see page 5). 2\n\nMethodology Used to Measure the Reported Benefit:\nFrom the data provided by the IRS, computer analysis was used to stratify and identify a\nuniverse of 1,530,006 ITINs assigned during the period January 1 through November 21, 2008.\nThe universe of 1,530,006 ITINs was separated into 3 strata: 1) 1,167,136 ITINs resulting from\nForms W-7 directly mailed or submitted through an IRS office, 2) 341,931 ITINs resulting from\nForms W-7 submitted by domestic Certified Acceptance Agents, and 3) 20,939 ITINs resulting\nfrom Forms W-7 submitted by foreign Certified Acceptance Agents. Statistical sampling was\nused to identify and review:\n \xe2\x80\xa2 123 Forms W-7 from stratum 1.\n \xe2\x80\xa2 348 Forms W-7 from stratum 2.\n \xe2\x80\xa2 187 Forms W-7 from stratum 3.\n\n\n1\n Due to rounding, numbers and percentages may not balance.\n2\n Only tax returns received from January 1 through November 21, 2008, were included in this analysis. Multiple\npaper tax returns may be attached to Form W-7 applications and are usually processed in the processing year in\nwhich they are received by the IRS. However, some tax returns were received in Processing Year 2008 but\nprocessed in Processing Year 2009. This happens when the tax return is received later in the year, the application is\nrejected and the ITIN is not assigned until later, or there is a problem with the tax return delaying the processing of\nthe return. When the ITIN is assigned and if there are no problems with the tax return, the tax return is processed.\nHowever, if a tax return is received reflecting a balance due and the ITIN is not assigned, a temporary Taxpayer\nIdentification Number is assigned to the tax return and the tax return is processed. The outcome measure was based\non one filing of a tax return attached to the ITIN application received from January 1 through November 21, 2008,\nand then multiplied by 5 to determine the refunds that could potentially be paid over 5 years for tax returns received\nand attached to one ITIN application.\n Page 24\n\x0c Individual Taxpayer Identification Numbers Are\n Being Issued Without Sufficient Supporting Documentation\n\n\n\nWe used a confidence level of 95 percent, with a precision factor of \xc2\xb1 5 percent and expected\nerror rates of 10 percent for stratum 1, 35 percent for stratum 2, and 15 percent for stratum 3.\n \xe2\x80\xa2 For stratum 1, 123 Forms W-7 were obtained from the IRS Federal Record Center.\n \xe2\x80\xa2 For strata 2 and 3, letters were mailed to domestic and foreign Certified Acceptance\n Agents requesting Forms W-7, supporting documents, and tax returns. These 2 samples\n were limited to 348 for stratum 2 and 187 for stratum 3.\nTax return information was extracted from the IRS Individual Returns Transaction File 3 for\nCalendar Years 2008 or 2009 or from the Integrated Data Retrieval System, 4 with command\ncodes 5 SUMRY, TXMDOA, IMFOLI, IMFOLT, INOLES and INOLEX. The data were used\nto determine the refunds issued and tax liability owed for each of 510 ITINs. For the\n658 Forms W-7 reviewed, 510 (78 percent) Forms W-7 were not adequately supported or errors\nwere found on the Forms W-7. Based on the results, an estimate was calculated from the\nuniverse of ITINs totaling $1,929,001,682 in refunds or balance dues totaling $66,307,028 that\nwere issued due to errors identified during the review. A 95 percent confidence interval was\nused to determine that the amount of refunds issued for the population is between $620,787,671\nand $204,121,824. The margin of error is \xc2\xb1 208,332,923.\nIn summary, a total of 1,171,355 returns allowed $412,454,748 in refunds for Calendar\nYears 2008 or 2009. A determination was made that over 5 calendar years $2,062,273,740 in\nrevenue could be protected. The $2,062,273,740 was calculated by multiplying $412,454,748\nby 5. It should be noted that these outcomes are refunds calculated without the inclusion of the\nChild Tax Credit and Additional Child Tax Credit because of the IRS\xe2\x80\x99 response to a prior\nTreasury Inspector General for Tax Administration report issued March 31, 2009. 6 In the prior\nreport, the Treasury Inspector General for Tax Administration recommended that legislation is\nneeded to clarify whether or not refundable tax credits such as the Additional Child Tax Credit\nmay be paid to filers without a Social Security Number. 7 The IRS responded that it will discuss\nwith the Office of Tax Policy, Department of the Treasury, the merits of an administration\nproposal to amend the Internal Revenue Code to limit eligibility for both the Child Tax Credit\nand Additional Child Tax Credit to individuals who have a Social Security Number issued by the\nSocial Security Administration rather than a number issued to an alien not authorized to work in\nthe U.S. Therefore, both Credits were excluded from the outcomes.\n\n3\n The Returns Transaction File contains all edited, transcribed, and error-corrected data from the U.S. Individual\nIncome Tax Returns (Form 1040 series) and related forms for the current processing year and 2 prior years.\n4\n IRS computer system capable of retrieving or updating stored information; it works in conjunction with a\ntaxpayer\xe2\x80\x99s account records.\n5\n Command codes are online interactive real-time programs in the IRS computer systems.\n6\n Actions Are Needed to Ensure Proper Use of Individual Taxpayer Identification Numbers and to Verify or Limit\nRefundable Credit Claims (Reference Number 2009-40-057, dated March 31, 2009).\n7\n Actions Are Needed to Ensure Proper Use of Individual Taxpayer Identification Numbers and to Verify or Limit\nRefundable Credit Claims (Reference Number 2009-40-057, dated March 31, 2009).\n Page 25\n\x0c Individual Taxpayer Identification Numbers Are\n Being Issued Without Sufficient Supporting Documentation\n\n\n\nThe outcome is potential and based on the realization that the outcome measure includes all\nerrors identified, but was not stratified by whether the error could prevent a tax return from being\nfiled. In addition, the outcome is contingent upon enhancement of internal controls.\n\nType and Value of Outcome Measure:\n\xe2\x80\xa2 Revenue Protection \xe2\x80\x93 Potential; $175,815,700 in tax refunds related to 60,333 tax returns\n submitted during Calendar Years 1996 through 2008 and attached to 121,601 individual tax\n returns processed in Calendar Year 2008; $879,078,500 projected over 5 years (see page 14).\n\nMethodology Used to Measure the Reported Benefit:\nFrom the data provided by the IRS, computer analysis was used to identify a universe of\n14 million ITINs assigned from Calendar Years 1996 through 2008. A volume of 60,333 ITINs\nwas identified as being used on multiple tax returns. The volume of 60,333 ITINs was matched\nto the IRS Returns Transaction File to determine the volume of tax returns processed in Calendar\nYear 2008. The analysis of the 60,333 ITINs determined 121,601 tax returns were filed. Of the\n121,601 tax returns - 76,998 (63 percent) ITINs were used for dependents, 31,287 (26 percent)\nwere used for secondary taxpayers (spouses), and 13,316 (11 percent) were used for primary\ntaxpayers. A total of 72,333 multiple ITINs were used on these tax returns. Based on the\nvolume of tax returns, refunds were found in the amount of $202,271,388 and tax due in the\namount of $26,455,688.\nIn summary, a total of 72,333 multiple ITINs used on 121,601 multiple tax returns allowed\n$175,815,700 in refunds for Calendar Year 2008. Because this could be a recurring issue, a\ndetermination was made that over 5 calendar years, revenue could be increased by $879,078,500.\nThe $879,078,500 was calculated by multiplying $175,815,700 by 5. The outcome is potential\nand contingent upon enhancement of internal controls preventing ITINs from being used on\nmultiple tax returns.\n\nType and Value of Outcome Measure:\n\xe2\x80\xa2 Reliability of Information \xe2\x80\x93 Potential; 318,107 taxpayer ITIN Forms W-7 were incorrectly\n input into the IRS Real-Time System; 1,590,535 projected over 5 years (see page 16).\n\nMethodology Used to Measure the Reported Benefit:\nFrom the data provided by the IRS, computer analysis was used to stratify and identify a\nuniverse of 1,549,397 ITINs assigned during the period January 1 through November 21, 2008.\nThe universe of 1,549,397 Forms W-7 was separated into 5 strata: 1) 1,167,136 ITINs resulting\nfrom Forms W-7 directly mailed or submitted through an IRS office; 2) 341,931 ITINs resulting\nfrom Forms W-7 submitted by domestic Certified Acceptance Agents; 3) 20,939 ITINs resulting\nfrom Forms W-7 submitted by foreign Certified Acceptance Agents; 4) 12,394 ITINs resulting\nfrom Forms W-7 submitted by Acceptance Agents; and 5) 6,997 ITINs resulting from\n Page 26\n\x0c Individual Taxpayer Identification Numbers Are\n Being Issued Without Sufficient Supporting Documentation\n\n\n\n Forms W-7 submitted with no designation of Acceptance Agent or Certified Acceptance Agent.\n Statistical sampling was used to identify and review:\n We used a confidence level of 95 percent, with a precision factor of \xc2\xb1 5 percent and an expected\n error rate of 10 percent for strata 1, 4, and 5. We used a confidence level of 90 percent, with a\n precision factor of \xc2\xb1 5 percent for strata 2 and 3 with expected error rates of 10 percent and\n 7 percent, respectively. See Figure 1 for the results for strata and projection analysis.\n Figure 1: Sampling and Projection Analysis\n Sample Stratum Projected\n Sample Stratum\n Size Population Errors\n Direct Mail 1 123 1,167,136 265,689\n Domestic Certified Acceptance Agents 2 91 341,931 41,332\n Foreign Certified Acceptance Agents 3 63 20,939 7,644\n Acceptance Agents 4 136 12,394 2,187\n No Designation 5 134 6,997 1,253\n Total 1,549,397 318,107 8\nSource: TIGTA statistical sample and analysis.\n\n The 547 Forms W-7 were reviewed and compared to the ITIN Real-Time System and 110 were\n identified as having been input incorrectly. Based on the sample results, an estimate was\n calculated from the universe of 1,549,397 Forms W-7, which determined 318,107 Forms W-7\n had been input incorrectly. The number of affected Forms W-7 is between 228,230 and 407,984\n (the margin of error is \xc2\xb1 89,877).\n\n\n\n\n 8\n Due to rounding, the individual samples will not total to 318,107. Calculations are based on 318,107.\n\n\n\n\n Page 27\n\x0c Individual Taxpayer Identification Numbers Are\n Being Issued Without Sufficient Supporting Documentation\n\n\n\n Appendix V\n\n Acceptable Documents When Applying for an\n Individual Taxpayer Identification Number\n\nThe following documents are acceptable by the IRS when applying for an ITIN:\n\xe2\x80\xa2 Civil Birth Certificate.\n\xe2\x80\xa2 Foreign Driver\xe2\x80\x99s License.\n\xe2\x80\xa2 Foreign Military Identification Card.\n\xe2\x80\xa2 Foreign Voter\xe2\x80\x99s Registration Card.\n\xe2\x80\xa2 Medical Records (Dependent\xe2\x80\x99s Only \xe2\x80\x93 under age 14; under age 18 if a student).\n\xe2\x80\xa2 National Identification Card. The document must be current and contain the individual\xe2\x80\x99s\n name, address, photograph, date of birth, and expiration date (e.g., Mexican Matricula\n card).\n\xe2\x80\xa2 Passport (Stand Alone Document).\n\xe2\x80\xa2 School Records (Dependent\xe2\x80\x99s Only - under age 14; under age 18 if a student).\n\xe2\x80\xa2 U.S. Citizenship and Immigration Services Photo Identification.\n\xe2\x80\xa2 U.S. Driver\xe2\x80\x99s License.\n\xe2\x80\xa2 U.S. Military Identification Card.\n\xe2\x80\xa2 U.S. State Identification Card.\n\xe2\x80\xa2 Visa Issued by the U.S. Department of State.\n\n\n\n\n Page 28\n\x0c Individual Taxpayer Identification Numbers Are\n Being Issued Without Sufficient Supporting Documentation\n\n\n\n Appendix VI\n\n Errors Identified in Application Packages\n Categorized by Sample\n\n Directly\n Certified Acceptance Certified Acceptance\n Mailed or\n Agent Residing Agent Residing Outside\n Submitted to\n in the U.S. the U.S.\n an IRS Office\nRequested documents\n NA NA 81 23% 21 11%\nwere not provided\nDocuments missing,\nincomplete, questionable, 19 15% 191 55% 131 70%\nor illegible\nForms W-7 not signed\n 15 12% 149 43% 67 36%\nand/or dated\nCertificates of Accuracy\n NA NA 80 23% 4 2%\nmissing\n\nInconsistent birth dates 9 7% 13 4% 0 0%\n\nEntry date conflicts with\n 6 5% 35 10% NA NA\ndocuments\nNames on documentation\n 15 12% 52 15% 74 40%\ninconsistent with Form W-7\n\nTax returns not provided NA NA 102 29% 7 4%\n\nSource: Treasury Inspector General for Tax Administration analysis of Forms W-7 processed in Calendar\nYear 2008. NA=Not Applicable. Form W-7 = Application for IRS Individual Taxpayer Identification Number. The\npercentages will not total to 100 due to packages containing more than 1 type of error.\n\n\n\n\n Page 29\n\x0c Individual Taxpayer Identification Numbers Are\n Being Issued Without Sufficient Supporting Documentation\n\n\n\n Appendix VII\n\n Rules for Claiming the Child Tax Credit and the\n Additional Child Tax Credit\n\nThe child must meet all five tests listed below to qualify for the Child Tax Credit and Additional\nChild Tax Credit.\n1. The child must be the taxpayer\xe2\x80\x99s son, daughter, stepchild, foster child, brother, sister,\n stepbrother, stepsister, or a descendant of any of them (for example, a grandchild, niece, or\n nephew).\n2. The child must be under age 17 at the end of the tax year.\n3. The child must not have provided more than one-half of his or her own support for the tax\n year.\n4. The child must have lived with the taxpayer for more than one-half of the tax year. 1\n5. The child must be a U.S. citizen, a U.S. national, 2 or a resident of the U.S. U.S. Tax Guide for\n Aliens (Publication 519) states that an individual will be considered a U.S. resident for tax\n purposes if he or she meets the substantial presence test for the calendar year. To meet this\n test, the individual must be physically present in the U.S. on at least 31 days during the\n current year, and 183 days during the 3-year period that includes the current year and the\n 2 years immediately before.\n\n\n\n\n1\n Child Tax Credit (Publication 972) contains some exceptions to the time lived with the taxpayer.\n2\n A U.S. national is an individual who, although not a U.S. citizen, owes his or her allegiance to the U.S. U.S.\nnationals include American Samoans and Northern Mariana Islanders who chose to become U.S. nationals instead of\nU.S. citizens.\n Page 30\n\x0c Individual Taxpayer Identification Numbers Are\n Being Issued Without Sufficient Supporting Documentation\n\n\n\n Appendix VIII\n\nManagement\xe2\x80\x99s Response to the Draft Report\n\n\n\n\n Page 31\n\x0c Individual Taxpayer Identification Numbers Are\n Being Issued Without Sufficient Supporting Documentation\n\n\n\n\n 2\n\nthe previous audit, Inadequate Management Information Has Adversely Affected the Acceptance Agent\nProgram (Reference Number 2009-40-087, dated June 19, 2009), that this was an area of concern. As a\nresult of your use of this over-sampling of CAA applications methodology, we believe the conclusions\nidentified in your report are not a true representation of the overall program.\n\nWe also would point out that on Page 13 of your report you note that\n**************************************1***********************************************\n**************************************************************************************\n**** However, this is not an accurate statement since Sections 151 and 152 of the Internal Revenue Code\ndo not require parenthood. Therefore these exemptions would not necessarily be denied.\n\nWe agree with the first two Outcome Measures in the report. We disagree with the third Outcome Measure\nthat 318,107 taxpayer ITINs were incorrectly input to the ITIN RTS. The calculation should be (110/547) x\n1,549,397 =311,579. This also changes the 5year projected number to 1,557,895.\n\nAttached are our comments on your specific recommendations. If you have any questions, please call me at\n(404) 338-7060, or a member of your staff may contact Peter J. Stipek, Director, Customer Account\nServices, Wage and Investment Division, at (404) 338-8910.\n\nAttachment\n\n\n\n\n Page 32\n\x0c Individual Taxpayer Identification Numbers Are\nBeing Issued Without Sufficient Supporting Documentation\n\n\n\n\n Page 33\n\x0c Individual Taxpayer Identification Numbers Are\nBeing Issued Without Sufficient Supporting Documentation\n\n\n\n\n Page 34\n\x0c Individual Taxpayer Identification Numbers Are\nBeing Issued Without Sufficient Supporting Documentation\n\n\n\n\n Page 35\n\x0c Individual Taxpayer Identification Numbers Are\nBeing Issued Without Sufficient Supporting Documentation\n\n\n\n\n Page 36\n\x0c'


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Kildekode (på engelsk: source code) er den tekst i et programmeringssprog, som programmøren har skrevet.
 Kildekoden kan så enten fortolkes og afvikles direkte af computeren eller kompileres (oversættes) til maskinkode til senere afvikling på computeren.
 Kildekode kan altså læses og forstås af programmører, som kender det programmeringssprog, kildekoden er skrevet i.
 For at kunne ændre i et stykke software er man nødt til at have kildekoden, hvorfor der ved nogle softwarekontrakter er krav om medlevering af kildekoden ved erhvervelse af kritiske systemer eller softwareløsninger.
 Software, hvor kildekoden kan erhverves på forlangende uden andre omkostninger end distributionsomkostningerne, samt muligheden for at videredistribuere ændringer baseret på kildekoden, kaldes fri og open source software.
 Implementation af programmeringssprog