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The Internal Revenue Service Should Consider Modifying the Form 1040 to Increase Earned Income Tax Credit Participation by Eligible Tax Filers

Report Information

Date Issued
Report Number
2018-IE-R004
Report Type
Inspection / Evaluation
Joint Report
Yes
Participating OIG
Treasury Inspector General for Tax Administration
Agency Wide
No (location specific)
Questioned Costs
$0
Funds for Better Use
$0
View Report

Recommendations

The Commissioner, Wage and Investment Division, should evaluate alternative approaches to post-filing outreach that reduce costs and increase the number of eligible taxpayers who receive the EITC. For example, the IRS should consider eliminating Schedule EIC and modifying Form 1040 to collect necessary eligibility information (such as ages of children and duration of residency) instead of sending reminder notices.

The Commissioner, Wage and Investment Division, should establish procedures to timely notify taxpayers who have received reminder notices with an error.

The Commissioner, Wage and Investment Division, should establish a specific objective for increasing EITC participation rates for eligible taxpayers. Following this, relevant performance measures should then be designed to determine whether the established objectives have been achieved.