U.S. flag

An official website of the United States government

Dot gov

Official websites use .gov
A .gov website belongs to an official government organization in the United States.

Https

Secure .gov websites use HTTPS
A lock () or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.

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

Report Information

Date Issued
Report Number
2019-40-026
Report Type
Audit
Joint Report
Yes
Participating OIG
Treasury Inspector General for Tax Administration
Agency Wide
Yes (agency-wide)
Questioned Costs
$0
Funds for Better Use
$74,027,960
View Report

Recommendations

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.