Prison/IRS move to block inmate tax fraud

Nevada prison officials have cut a deal with the Internal Revenue Service designed to stop inmates from filing fraudulent tax returns.

Director of Corrections Greg Cox said negotiations have been under way since last year on the agreement to block fraud by inmates and their families seeking tax refunds they don't deserve.

The process started after IRS Commissioner Douglas Shulman contacted governors of the 10 states with the highest numbers of phony inmate tax returns. Cox said Nevada isn't one of those states but, at 20th, Nevada inmates still were issued tax refunds totaling $333,489.

The mutual agreement with IRS will provide the agency better data on the inmate population to help find and prevent issuance of refunds when inmates aren't entitled to the money.