According to a new report from the Treasury Inspector General for Tax Administration (TIGTA), the IRS has not been fully compliant with a federal law requiring it to eliminate and report improper government payments to taxpayers. (TIGTA Ref. No: 2012-40-028, March 2, 2012)
The Improper Payments Elimination and Recovery Act of 2010 increased accountability for reducing improper payments in all federal programs. TIGTA found that the only program the IRS has identified for improper payment reporting is the Earned Income Tax Credit (EITC) Program. The IRS estimates that 21% to 26% of EITC payments were issued improperly in 2011, resulting in $13.7 to $16.7 billion in improper EITC payments. It now plans to establish EITC reduction targets and is exploring ways of computing an improper payment estimate for EITC underpayments.
- Small Business Tax Deduction Strategies No matches