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Revising Tax Debt Identification Programming and Correcting Procedural Errors Could Improve the Tax Refund Offset Program

Report Information

Date Issued
Report Number
2016-40-028
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
$0
View Report

Recommendations

The Deputy Commissioner for Services and Enforcement should revise computer programming to use the LLC indicator on the business tax account to ensure that individual tax refunds are not offset to the associated LLC's business tax debt.

The Commissioner, Wage and Investment Division, should identify and transfer the incorrect offsets totaling $780,474 from the 502 LLC accounts back to the individual taxpayer accounts. In addition, identify other accounts with incorrect offsets subsequent to the time frame of TIGTA's TY 2013 analysis until programming is corrected and transfer incorrectly offset refunds back to the individual taxpayer accounts.