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Results of the 2017 Filing Season

Report Information

Date Issued
Report Number
2018-40-012
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
$3,297,127,798
View Report

Recommendations

The Commissioner, Wage and Investment Division, should revise procedures to include issuing letters and alerts to preparers who file tax returns claiming the CTC but do not provide the required Form 8867.

The Commissioner, Wage and Investment Division, should evaluate the 41 preparers TIGTA identified who filed CTC, ACTC, and AOTC claims without a Form 8867 and were not notified by the IRS, and ensure that actions are taken to notify the preparers of the filing requirement if warranted.

The Commissioner, Wage and Investment Division, should ensure that IRS employees who process these credits are aware that taxpayers reporting a foreign income exclusion or housing deduction cannot also receive the ACTC.

The Commissioner, Wage and Investment Division, should review the 45 tax returns we identified for which the IRS erroneously paid the ACTC and take the actions necessary to recover the erroneous payments.

The Commissioner, Wage and Investment Division, should review the 494 tax returns TIGTA identified and take the actions necessary to ensure that these taxpayers receive the Residential Energy Efficient Property Credit to which they are entitled.