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...

IRS must take oath on Lerner emails: judgeMackenzie Weinger of Politico reported on Thursday that a federal judge ordered the IRS to explain under oath how it lost emails connected to Lois Lerner, the ex-IRS official at the...
The Republican-controlled House of Representatives passed a bill on Friday morning that would permanently extend the bonus depreciation tax break for businesses.The measure, HR 4718, which was crafted by Representative Pat...
The Republican-led House of Representatives is expected to pass a bill this week that would permanently extend the bonus depreciation tax break. But don’t expect President Obama to sign it.The Obama administration said...

Upcoming CPE Webinars

Jul 16
Hand off work to others with finesse and success. Kristen Rampe, CPA will share how to ensure delegated work is properly handled from start to finish in this content-rich one hour webinar.
Jul 17
This webcast will cover the preparation of the statement of cash flows and focus on accounting and disclosure policies for other important issues described below.
Jul 23
We can’t deny a great divide exists between the expectations and workplace needs of Baby Boomers and Millennials. To create thriving organizational performance, we need to shift the way in which we groom future leaders.
Jul 24
In this presentation Excel expert David Ringstrom, CPA revisits the Excel feature you should be using, but probably aren't. The Table feature offers the ability to both boost the integrity of your spreadsheets, but reduce maintenance as well.