TIGTA Finds IRS Not Fully Compliant

From TIGA March 22, 2012, Press Release 
 
According to the Treasury Inspector General for Tax Administration (TIGTA) report that was released March 22, the IRS is not fully compliant with a federal law that requires it to eliminate and report improper payments made to taxpayers.
 
The Improper Payments Elimination and Recovery Act of 2010 increased agency accountability for reducing improper payments in all federal programs. That law requires TIGTA to assess the IRS' compliance with improper payment requirements.
 
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 21–26 percent of EITC payments were issued improperly in fiscal year 2011. This equates to $13.7–$16.7 billion in EITC improper payments.
 
"The IRS' failure to fully comply with this important federal law is troubling," said Treasury Inspector General for Tax Administration J. Russell George. "The law requires the IRS to establish annual reduction targets for improper payments; however, it has not done so."
 
TIGTA determined that the IRS did not comply with all of the improper payment requirements included in the Improper Payments Elimination and Recovery Act. The IRS has not established annual EITC improper payment reduction targets and has not computed a gross estimate of EITC improper payments, as the estimate does not include underpayments. The IRS has plans in place to establish EITC reduction targets and is exploring the feasibility of computing an improper payment estimate for EITC underpayments.
 
TIGTA made no recommendations in its report.
 
Related article:
 

You may like these other stories...

Hertz and Icahn make peaceThere won’t be any nasty, protracted proxy battle between Hertz Global Holdings and activist investor Carl Icahn. The rental car chain agreed last Thursday to give Icahn – who has...
For bitcoin users, the taxman cometh. And you best know how to calculate taxes owed on what the IRS calls convertible virtual currency.In March 2014, the IRS issued Notice 2014-21, which declares virtual currency will be...
Majority of House of Representatives urges leadership to preserve cash method of accounting for tax purposesA bipartisan majority of the House of Representatives – 233 members – has signed a letter urging House...

Already a member? log in here.

Upcoming CPE Webinars

Sep 18
In this course, Amber Setter will shine the light on different types of leadership behavior- an integral part of everyone's career.
Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
Sep 30
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Oct 23
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.