Processes Do Not Maximize the Use of Third-Party Income Documents to Identify Potentially Improper Refundable Credit Claims

The Commissioner, Wage and Investment Division, should take steps to recover the more than $34.8 million in EITCs, CTCs, ACTCs, and AOTCs erroneously paid to the 15,744 filers with retroactive claims that TIGTA identified.

The Commissioner, Wage and Investment Division, should: Continue to evaluate opportunities to use Form 1099-MISC in conjunction with Form W-2 to *********2************** for all EITC and ACTC claims *******2******* ******2**********:

The Commissioner, Wage and Investment Division, should, for the purpose of informing the Congress on the benefit of the early availability of third-party documents, conduct a study to quantify the number of EITC and ACTC claims that the IRS identifies with unreported, underreported, and overreported income. Include information as to the number and amount of identified claims the IRS was able to address using existing authority (i.e., through an audit) in comparison to the total number and amount of claims identified.

The Commissioner, Wage and Investment Division should evaluate the use of nonwork SSN data the IRS currently has available for use in its systemic processes to identify potentially erroneous EITC claims.