The federal government lost as high as $304 billion annually to tax fraud over a seven-year period, a watchdog found Friday.
The Government Accountability Office estimated in a report that annual federal tax fraud loss was between $116 billion and $304 billion from 2018 through 2024. It represents between 2% and 6% of the estimated taxes owed to the government.
Minimizing fraud, waste, and abuse is a pillar of the Trump administration’s strategies in the federal government. The IRS has historically struggled to go after fraud after decades of underfunding.
While the IRS protected billions of dollars more in tax …
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These frauds exploit emotional vulnerability and trust rather than technical weaknesses.
- Romance Scams: Scammers build long-term online relationships with victims, eventually fabricating a “crisis” (medical emergency, legal trouble, or travel costs) that requires the victim to send money.
- Pig Butchering: A hybrid scam where the criminal builds a romantic or platonic relationship to eventually “tutor” the victim in a fraudulent cryptocurrency investment.