Programming Errors and Deficiencies in Tax Examiner Screening Resulted in Some Health Coverage Tax Credit Claims Being Erroneously Processed

The Commissioner, Wage and Investment Division, should implement Error Resolution Unit screening procedures to identify HCTC claims on tax returns filed by potentially ineligible individuals. These procedures should include screening processes to identify individuals who are 67 years of age or older.

The Commissioner, Wage and Investment Division, should implement Error Resolution Unit screening procedures to identify individuals who 1) claimed a self-employed health insurance deduction equal to 27.5 or 100 percent of the HCTC amount and 2) claimed medical and dental expenses on Schedule A equal to 27.5 or 100 percent of the HCTC amount.

The Commissioner, Wage and Investment Division, should implement Error Resolution Unit screening procedures to identify individuals who received advance HCTC payments and claimed the full amount of HCTC on their tax return.

The Commissioner, Wage and Investment Division, should implement Error Resolution Unit screening procedures to identify individuals who filed a Form W-2, indicating that they obtained a new job.

The Commissioner, Wage and Investment Division, should review the 343 tax returns TIGTA identified (for which an ineligible individual's HCTC claim was granted) to ensure that taxpayers received the HCTCs to which they were entitled and that erroneously issued HCTCs are recovered.