IRS employee credit cards vulnerable to fraud
- By Reid Davenport
- Jul 03, 2013
The Internal Revenue Service has one more set of improprieties to address, as the Treasury Inspector General for Tax Administration reported in late June that IRS oversight for employee use of credit cards is insufficient, making the agency vulnerable for abuse.
In the report, TIGTA said the agency lacks a system to detect improper purchases that results in appropriate action, does not cancel cards before an employee leaves and does not have standards for what constitutes a split purchase between the agency and employees.
"The IRS does not have the controls in place to provide assurance that improper purchases do not occur and appropriate corrective action is taken," the report said. "Enhanced internal controls would provide greater assurance that IRS resources are being used more effectively and efficiently."
Among TIGTA recommendations was including in their guidelines that accounts be closed before employee departure, reducing pending transactions and defining what constitutes a split purchase. IRS management agreed with all 11 recommendations, saying they will implement all corrective actions. The agency said that it already has begun evaluating all referrals related to potential abuse, which was one of the recommendations.
"The majority of IRS cardholders appear to use their purchase cards properly," the report said. "However, TIGTA identified some instances of inappropriate use that include improper decorative and give-away items for managers' meetings and Combined Federal Campaign fundraising events."
Reid Davenport is an FCW editorial fellow. Connect with him on Twitter: @ReidDavenport.