TIGTA Finds IRS Not Fully Compliant
by AccountingWEB on
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.
You may like these other stories...
Many senior US tax professionals believe that a streamlined audit process will be the top benefit resulting from the IRS Transfer Pricing Audit Roadmap, a new toolkit organized around a notional 24-month audit timeline,...
Tax accounting to be simplified for money-market fundsThe US Securities and Exchange Commission (SEC) voted 3-2 on Wednesday for sweeping changes to institutional money-market funds, Emily Chasan, senior editor of...
By Cathy Stopyra and Todd SimmensUnderpayment interest, refund interest, and penalties charged to businesses are just a few of the considerations the IRS calculates when determining taxation for a given company. Though...
Upcoming CPE Webinars
In this session Excel expert David Ringstrom helps beginners get up to speed in Microsoft Excel. However, even experienced Excel users will learn some new tricks, particularly when David discusses under-utilized aspects of Excel.
FRF for SMEs Series--Measurement and Disclosure Principles for various Consolidations and Business Combinations, Part 4B
This webcast will focus on accounting and disclosure policies for various types of consolidations and business combinations.
In this session we'll review best practices for how to generate interest in your firm’s services.