Actions Have Not Been Taken to Improve Amended Tax Return Review Procedures to Reduce Erroneous and Fraudulent Refunds

The Commissioner, Wage and Investment Division, should review the 23 questionable amended tax returns TIGTA identified and take the actions needed to ensure that taxpayers receive only the benefits to which they are entitled.

The Commissioner, Wage and Investment Division, should implement adequate processes and procedures to identify and correct employee errors to reduce erroneous refunds issued.

The Commissioner, Wage and Investment Division, should Complete a business case and request funding for expansion of e-filing to amended returns in the 2020 Filing Season in an effort to reduce unnecessary processing costs and erroneous refunds resulting from amended returns ***************2****************** *********2*********.

The Commissioner, Wage and Investment Division, should update tax examiner and CSR review guidelines to incorporate additional verification steps to be taken similar to those systemically performed when verifying a refundable claim on an original tax return. In particular, revised processes and procedures should require an extensive review of amended tax returns with claims for refundable credits ***************2***************** ********2********.

The Commissioner, Wage and Investment Division, Modify the Form 1040X to allow individuals *********2*********** ************************2************************* when filing an amended tax return. Once modified, update processing procedures to verify the accuracy of ******2******* ************************2**************** and, ***************2*************** ****2****, continue processing the amended return.