DETROIT (WWJ) – As metro Detroiters begin to file their tax returns,  the IRS is dealing with a big problem; fraud and identity theft.

How big of a problem is it?

WWJ’s Rob Sanford reports that IRS officials say more than 400,000 tax payers have been victimized between mid 2009 to the end of 2011.

The agency says it stopped about 260,000 fake returns based on identity theft, preventing refunds getting into the hands of crooks.

That’s the good news … the bad news is that they had no idea how much in fraudulent refunds made it through the system undetected.

The agency has added new filters to screen for tax fraud and is working harder to help victims get their rightful refunds.

Find out more here.

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