NEWARK - A recent federal audit shows that thousands of New Jersey prisoners receive tax refunds through fraudulent means.

The report states that more than 25,000 inmates in New Jersey collected over $900,000 in refunds through a phony tax return scheme. Nationally, over $39 million in tax refunds were collected by prisoners.

Sen. Robert Menendez (D-N.J.) says that prisoners are filing fake returns for business that have filed for bankruptcy.

Menendez says the problem is that New Jersey doesn't share prisoner info with the IRS, leaving them in the dark about who is actually in prison and who is not.

The senator is calling on the state to begin sharing the necessary info with the government to prevent this from continuing.