Results of the 2021 Filing Season

The Deputy Commissioner (Services and Enforcement) should prioritize and fully fund the development of 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

On May 11, 2021, TIGTA alerted the Director, Submission Processing, Wage and Investment Division, that taxpayers were excluding unemployment income when they did not meet modified adjusted gross income thresholds. TIGTA recommended that IRS management review and correct the 4,838 tax returns we identified, as well as any tax returns meeting the same condition that were filed after April 22, 2021, whereby taxpayers with modified adjusted gross income of more than $150,000 erroneously excluded their unemployment income

The Commissioner, Wage and Investment Division, should ensure that the 1,962 tax accounts that had estimated tax payments available in the spouse’s account are resolved (as well as any tax returns meeting the same condition that were filed after May 27, 2021).

The Commissioner, Wage and Investment Division, should confirm that the programming issues associated with the 1,962 tax accounts are updated to prevent this from happening for future Economic Impact Payments (EIPs).

The Commissioner, Wage and Investment Division, should establish a timeline to evaluate the Identity Protection Personal Identification Numbr (IP PIN) unpostable process and determine if it is an effective use of resources.