Controlling fraud is a dynamic undertaking. Fraud perpetrators think creatively, adapt continuously, and relish devising complex strategies. They have no single profile. Fraud prevention mechanisms that are perfectly satisfactory today may be of no use tomorrow. Maintaining effective fraud prevention mechanisms demands continuous assessment of emerging trends and constant revision of the current prevention mechanisms.
Prevention is the critical element of the revenue protection strategy.
Although detection and prosecution are important, it is costly and inefficient to prosecute every instance of fraud. The IRS goal is to stop fraudulent returns from entering its systems. The strategy includes a strong detection component. The IRS is improving its current screening and detection systems with some sophisticated and automated techniques. The fourth component of the IRS strategy involves the use of enforcement tools such as QRP, the unallowables program, prosecutions, and preparer program efforts.