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American Rescue Plan Act: Assessment of Processes to Identify and Address Improper Child and Dependent Care Credit Claims

Report Information

Date Issued
Report Number
2022-47-023
Report Type
Audit
Special Project
Pandemic
Special Emphasis
American Rescue Plan Act of 2021 (ARPA)
Joint Report
Yes
Participating OIG
Treasury Inspector General for Tax Administration
Agency Wide
Yes (agency-wide)
Questioned Costs
$0
Funds for Better Use
$0

Recommendations

The Commissioner, Wage and Investment Division, should develop a process to identify tax returns with ***2*** Individual Taxpayer Identification Numbers (ITINs) used to identify the care provider. These tax returns should be considered for selection for post-refund compliance review.

The Commissioner, Wage and Investment Division, should revise Form 2441 instructions and Publication 503, using examples, so taxpayers may better understand the requirements for qualifying care and expenses

The Commissioner, Wage and Investment Division, should develop a process to identify tax returns with care provider ****************************************************2******************************. These tax returns should be selected for post-refund compliance review.

The Commissioner, Wage and Investment Division, should coordinate with the Small Business/Self-Employed Division to develop a compliance plan for post-refund treatment of cases involving **********************2********************************************** ****************************************************2********************************************** ****************************************************2**************************************************2***