Paul L. Caron

Tuesday, December 22, 2009

IRS Cannot Verify Taxpayer Eligibility for 2/3 of $325 Billion of Stimulus Tax Benefits

The Treasury Inspector General for Tax Administration today released Evaluation of the Internal Revenue Service’s Capability to Ensure Proper Use of Recovery Act Funds (2010-41-011):

The Treasury Inspector General for Tax Administration today publicly released its review of the IRS’s ability to verify taxpayer eligibility for tax benefits and credits provided by the American Recovery and Reinvestment Act of 2009.

The Recovery Act contains 56 tax provisions with a potential cost of more than $325 billion that are intended to provide tax relief for individuals and businesses. These include 20 provisions for individuals that provide tax relief to working or retired Americans and their families. Thirty-six additional provisions provide tax relief and incentives for businesses, including provisions that encourage investment in sources of renewable energy and promote the hiring of unemployed veterans. They also allow for the sale of bonds to provide for construction, financing, environmental and manufacturing improvements.

TIGTA found that the IRS is unable to verify taxpayer eligibility for the majority of Recovery Act tax benefits and credits at the time a tax return is processed. This includes 13 of the 20 benefits and credits for individual taxpayers and 26 of the tax provisions benefiting businesses.

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Tracked on Dec 23, 2009 8:07:08 AM


So....How long before this IG gets canned?

Posted by: Boglee | Dec 23, 2009 7:05:31 PM

If the new "healthcare reform" passes, the IRS will be deeply involved in determining who gets subsidies and who doesn't. Imagine what a cluster that will be.

Posted by: Mike Kelley | Dec 23, 2009 1:03:35 PM

Chicago politics at work. First give the money to favorite constituencies. Do it as fast as
possible. Then, you say you can't verify eligibility. Money is gone. We go to the next round.

Posted by: Yehiel | Dec 23, 2009 9:17:08 AM

From the belly of the beast: If the I.R.S., as an institution, doesn't want to do something, it is going to screw it up on purpose.

Posted by: Lou Gots | Dec 23, 2009 8:23:48 AM

Empower ourselves?

I thought all rights and obligations not specificly granted to the Government automatically belong to us.

The only limit on our personal power is what we allow the government to control.

Posted by: dj | Dec 23, 2009 8:11:22 AM

Give me a list and a percent of collections, and I'll do it.

Posted by: Woody | Dec 23, 2009 8:10:12 AM

What George said. If the IRS can't identify who's eligible, we need to empower ourselves to do so, don't we?

Posted by: TW | Dec 22, 2009 8:41:56 PM

I almost feel sorry for the IRS. They've been put the position of doing all sorts of things other than the purpose for which they were created--collecting taxes.

Posted by: American Delight | Dec 22, 2009 5:53:38 PM

How about a list of which benefits the IRS is unable toverify?

Posted by: george | Dec 22, 2009 2:39:44 PM