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Results of the 2021 Filing Season

Report Information

Date Issued
Report Number
2022-40-024
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
$4,934,811
View Report

Recommendations

The Commissioner, Wage and Investment Division, should, as previously agreed, develop and implement processes and procedures to identify and correct tax examiner entries in verified fields that exceed statutory limits, including a process to ensure that tax returns with verified amounts are systemically reprocessed through Error Resolution System (ERS) programming before being released for processing

The Commissioner, Wage and Investment Division, should review and correct the remaining 183 out of 191 cases we identified and recover the Additional Child Tax Credit (ACTC) amounts that were issued in error

The Commissioner, Wage and Investment Division, should review and correct the 14,030 tax returns for which the tax examiner did not allow the use of the Tax Year 2019 earned income to calculate the Earned Income Tax Credit (EITC) amount.

The Commissioner, Wage and Investment Division, should review and correct the 9,592 tax returns for which the tax examiner did not allow the use of the Tax Year 2019 earned income to calculate the Additional Child Tax Credit (ACTC) amount.

The Commissioner, Wage and Investment Division, should reinforce guidance for Error Resolution tax examiners to ensure that they are aware to allow the use of Prior Year Earned Income (PYEI) during the 2022 Filing Season, when applicable.