"IRS refunded $4B to identity thieves," 655 tax refunds to a single Lithuania address

Don't red flags go off when 655 tax refunds are sent to a single address in Lithuania?  This gives one lots of confidence that government can run health insurance well.  From the Associated Press:

The Internal Revenue Service issued $4 billion in fraudulent tax refunds last year to people using stolen identities, with some of the money going to addresses in Bulgaria, Lithuania and Ireland, according to an inspector general's report released Thursday. 

The IRS sent a total of 655 tax refunds to a single address in Lithuania, and 343 refunds went to a lone address in Shanghai. 

In the U.S., more fraudulent returns went to Miami than any other city. Other top destinations were Chicago, Detroit, Atlanta and Houston. 

The IRS has stepped up efforts to fight identity theft, but thieves are getting more aggressive, said the report by J. Russell George, Treasury's inspector general for tax administration. Last year, the IRS stopped more than $12 billion in fraudulent refunds from going to identity thieves, compared with $8 billion the year before. 

"Identity theft continues to be a serious problem with devastating consequences for taxpayers and an enormous impact on tax administration," George said in a statement. The fraud "erodes taxpayer confidence in the federal tax system. . . .