Published: Feb 02, 2011 8:41 PM EST
Updated: Feb 02, 2011 5:41 PM EST

ALBANY, N.Y. (AP) - A new agreement aims to stop federal prisoners from collecting bogus tax refunds in their cells.

Sen. Charles Schumer says federal officials agreed Wednesday to work together to end a practice that allows prisoners to bilk taxpayers.

The agreement between the Internal Revenue Service and Bureau of Prisons follows pressure in January from senators Schumer of New York, Sherrod Brown of Ohio, Amy Klobuchar (KLOH'-buh-shar) of Minnesota and Bill Nelson of Florida. They complained that the agencies failed to cooperate and comply with a 2008 law.

 Prisoners nationwide have used their own names or the names of friends and associates to submit false claims to get and cash more than $123 million in refund checks.

Now, state officials can strike similar deals with the IRS.

(Copyright 2011 by The Associated Press. All Rights Reserved.)