Results of the 2019 Filing Season

The Commissioner, Wage and Investment Division, should review the returns of the 123 taxpayers that received CTC and ACTC claims for a dependent that had an ATIN or ITIN and the 398 taxpayers that received ACTCs over the $1,400 limit and ensure that the IRS recovers the improper amount that the taxpayers received.

The Commissioner, Wage and Investment Division, should provide refresher training to tax examiners on accurately evaluating and working tax returns that involve ACTC claims above the allowable limit as well as QBI deduction claims above the allowable amount.

The Commissioner, Wage and Investment Division, should review the 7,719 tax returns that exceeded the allowable QBI deduction and ensure that the IRS recovers the improper amount the taxpayer received.

The Commissioner, Wage and Investment Division, should evaluate the 38,075 tax returns we identified with a QBI deduction for which the filer did not appear to qualify to claim the deduction (because the filer did not have a business or real estate investment trust dividend income) to ensure that taxpayers are entitled to the deductions claimed.

The Commissioner, Wage and Investment Division, should evaluate the 887,991 tax returns that appear to qualify for the QBI deduction but for which no deductions were claimed to identify common characteristics that would enable the IRS to work with internal and external stakeholders in order to develop a more targeted outreach plan to ensure that taxpayers are aware of the eligibility requirements to claim the deduction.