Thursday, February 10, 2011
The Treasury Inspector General for Tax Administration yesterday released Reduction Targets and Strategies Have Not Been Established to Reduce the Billions of Dollars in Improper Earned Income Tax Credit Payments Each Year (2011-40-023):
The GAO has listed the Earned Income Tax Credit (EITC) Program as having the second highest dollar amount of improper payments of all Federal programs. The IRS has made little improvement in reducing EITC improper payments since 2002 when it was first required to report estimates of these payments to Congress. The IRS continues to report that 23% - 28% of EITC payments are issued improperly each year. In Fiscal Year 2009, this equated to $11 billion to $13 billion in EITC improper payments.
- Accounting Today, IRS Can’t Stop Paying Billions in Bogus EITC Claims
- Associated Press, IRS Not Stopping Billions Improper Tax Credits