Identity thieves made a fortune off the IRS last year.
According to an Inspector General Report, the IRS paid out $3.6-billion in fraudulent tax refunds to the thieves.
But that's down from the more than $5-billion the agency paid out the year before.
An audit by the Treasury Inspector General for tax administration also found the IRS failed to prevent more than a million potentially fraudulent tax returns for 2011 from being processed.
That includes 5,500 fraudulent returns filed by a single tax preparer for a refund of nearly 27-million dollars!
Still, the report said the IRS is improving.
The agency caught more than 12-million suspicious returns in the last two years.
And earlier this year, it arrested hundreds of identity theft suspects in a series of raids.
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