Millions of Dollars in Potentially Erroneous Excess Social Security Tax Credit Claims Are Not Addressed

The Commissioner, Wage and Investment Division, should develop processes and procedures to ensure that tax examiners accurately review Excess Social Security Tax Credit claims.

The Commissioner, Wage and Investment Division, should update internal guidelines to require tax examiners to research employer Forms W-2 when a paid preparer filed the tax return.

The Commissioner, Wage and Investment Division, should expand Excess Social Security Tax Credit return selection criteria to identify for screening claims filed using filing status Married Filing Separately, Head of Household, or Qualified Widow(er).

The Commissioner, Wage and Investment Division, should expand Excess Social Security Tax Credit return selection criteria to identify for screening claims filed on Form 1040NR for additional review.

The Commissioner, Wage and Investment Division, should develop processes and procedures to ensure that the Social Security tax maximum withholding amounts are updated in systemic programs that select Excess Social Security Tax Credit claims for review.