Policy Documents

The Internal Revenue Service Fiscal Year 2013 Improper Payment Reporting

J. Russell George –
March 31, 2014

This report of the Treasury Inspector General for Tax Administration declares the IRS is making little progress in reducing improper payments of Earned Income Tax Credits — allowing more than $13 billion to slip through in Fiscal Year 2013.

The IRS itself admits that roughly one-quarter of EITC payments were issued improperly in Fiscal Year 2013. The dollar value of these improper payments was estimated to be between $13.3 billion and $15.6 billion.

TIGTA does not make any recommendations in its report, which pointed to a persistent pattern of improper payouts.