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IRS erroneously paid $152M in refundable tax credits
Source:
taxprotoday.com
- Jul 21, 2017
The Internal Revenue Service didn’t properly implement some provisions of the PATH Act aimed at reducing improper payments for refundable tax credits, instead allowing an estimated $152 million in credits, according to a new report.
The report, from the Treasury Inspector General for Tax Administration, pointed to provisions in the PATH Act that tried to reduce improper payments of the Earned Income Tax Credit, the Child Tax Credit, the Additional Child Tax Credit and the American Opportunity Tax Credit. Starting this past tax season, taxpayers are no longer permitted to file an original or amended tax return for prior years (known as a retroactive claim) to claim certain refundable credits if the Taxpayer Identification Number they used to claim the credit was issued after the due date of the tax return. However, TIGTA found the IRS lacked the information it needed to put the processes in place to catch those claims in time, so it mistakenly paid refundable credit claims totaling more than $34.8 million to 15,755 taxpayers.
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Category: General Business
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