Refundable Credits Oversight Enhanced by IRS

Refundable Credits
Refundable Credits

According to an audit performed by the Treasury’s Inspector General for Tax Administration, the IRS will implement new procedures to prevent the wrongful issuance of refundable tax credits. The audit discussed the fact that the IRS had incorrectly issued and estimated $2.3 billion in refundable credits from the years 2006-2009. The report also found that the government continued to send out checks to individuals who had wrongfully received checks in the past.

Oversight of Refundable Credits

The report indicated that the IRS could have saved hundreds of millions of dollars from being wrongly issued if they had merely checked refund claims for both refundable credits, the Additional Child Tax Credit (ACTC) and the Earned Income Tax Credit (EITC).

The IRS has promised that additional scrutiny will be considered for those taxpayers who had erroneously received refund tax credits in the past. The IRS also said it would develop a screening method to ensure that the history of a taxpayer would be on display when refund credits are being considered for issuance.

 

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