$13.7 to $16.7 Billion in Improper Earned Income Tax Refunds Issued by the IRS

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Government-wasteA new report from the Treasury Inspector General for Tax Administration (TIGTA) reported that the IRS has not been fully compliant with a federal law requiring it to eliminate and report improper government payment to taxpayers (TIGTA Ref. No: 2012-40-028, March 2, 2012).

The IRS estimates that between 21% and 26% of Earned Income Tax Credit (EITC) payments were paid improperly. This is an astounding $13,700,000,000 ($13.7 billion) to $16,700,000,000 ($16.7 billion) in taxpayer funds that the IRS failed to stop from being wasted.

Just a suggestion – maybe some of the thousands of new IRS agents that have been hired should be concentrated here.