# IRS Blocks Potentially Fraudulent Refunds

The Government Accountability Office estimates that federal tax fraud costs $116 billion to $304 billion annually, while IRS automated screening blocked an estimated $88 billion in invalid or potentially fraudulent refunds from 2018 through 2024. The article argues for coordinated, government-wide pre-refund identity verification and cross-program fraud detection. It identifies a potential market need for identity verification, analytics, and AI-resilient screening capabilities, but does not identify a specific solicitation, contract, or procurement timeline.

- The IRS results provide a concrete example of automated screening at scale; agencies and industry teams can use the figures to inform discussions about fraud prevention and the potential value of earlier detection.
- Contractors offering identity verification, analytics, or fraud-screening technology may find relevant use cases across tax and other benefit programs, although the signal does not confirm planned procurements.
- Procurement professionals can distinguish this policy and technology trend from an active bid opportunity: no contract vehicle, funding amount, or solicitation is specified.

**Jurisdictions:** federal
**Industries:** Information Technology
**Topics:** Artificial Intelligence, Cybersecurity
**Published:** October 19, 2026

### Government Entities
- Internal Revenue Service (IRS)
- Government Accountability Office (GAO)
- U.S. Department of the Treasury (Treasury)

### Sources
- [Tax fraud costs up to $304B a year. More can be stopped before the refund goes out. | FedScoop](https://fedscoop.com/treasury-irs-tax-fraud-prevention) - FedScoop