IRS Needs Changes to Avoid Health Law Fraud, Audit Says

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The U.S. Internal Revenue Service needs to make changes to prevent fraud and improve security in systems it is building to deliver health insurance subsidies, according to an audit by the tax agency’s inspector general.

The audit, released today by the Treasury Inspector General for Tax Administration, finds that the IRS successfully completed development and testing for the systems that compute the subsidies under the Affordable Care Act. The audit found that “critical” pieces in security controls failed during testing and anti-fraud programs are still being developed.