IRS Erroneously Gives Out USD 15 Billion

May 15, 2014 Taxation in USA

Tax RefundsWASHINGTON D.C. – US tax authorities are persistently making overpayments to taxpayers, giving out more than USD 15 billion in one year alone.

On May 13th the Treasury Inspector General for Tax Administration released a new report showing that last year the US Internal Revenue Service issued as much as USD 15.6 billion of erroneous tax credits, and the IRS does not seem to be making any progress to improve the situation.

In its new report the TIGTA showed that in 2013 at least 22 percent of all Earned Income Tax Credit (EITC) payments were made in error, although the figure could be as high as 26 percent,

The TIGTA conducted the review of erroneous ETIC payments as part of the government’s Improper Payments Recovery Act (IPERA), which was launched in 2010 specifically to asses and address erroneous payments made by the IRS, especially high-risk programs such as the ETIC payments.

The results of the review conducted by the TIGTA showed that for the last three years the IRS has failed to properly address possibility of making overpayments or erroneous payments, and, so far, the IRS has failed to follow the TIGTA’s recommendations to how address the situation.

The EITC is a tax refund program aimed at providing financial assistance to individuals earning less than USD 14 790 per year.