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Tuesday, December 5, 2006

Computer Failure Leads to Big IRS Refunds


At least two months before the IRS mistakenly began paying an estimated $200 million in fraudulent or erroneous 2006 tax refunds, the agency was warned about potentially 'catastrophic' problems in a new computer being developed to avert such a blunder. A USA Today examination of the IRS Electronic Fraud Detection System project found the previously unpublicized November 2005 warning, along with other warnings and new details of missteps that culminated in one of the most costly and embarrassing episodes in the tax agency's recent history. (USA Today, Tuesday)

Maybe the computer was programmed to respect property rights.

FEE Timely Classic
The Power to Tax Is the Power to Destroy by Clarence B. Carson