The IRS is not in full compliance with the Improper Payments Elimination and Recovery Act of 2010, which requires the agency to eliminate and report improper payments made to taxpayers, the Treasury Inspector General for Tax Administration has said.
The only program the IRS has identified for improper payment reporting is the Earned Income Tax Credit Program, TIGTA said, adding that the IRS estimates that 21 – 26 percent of EITC payments were issued improperly in fiscal 2011, equating to $13.7 to $16.7 billion in EITC improper payments.
The agency also 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, said the IG.
It said the agency has plans in place to establish EITC reduction targets and is exploring the feasibility of computing an improper payment estimate for EITC underpayments.
