The Earned Income and additional child tax credits help put added money in the hands of millions of filers. They also are a source of tax fraud. A new law will delay refunds in 2017 on returns that claim these credits.
Around $106 billion is lost government-wide due to improper payments. The IRS contribution to this unwelcome amount is $15.6 billion in bad EITC claims.
Two budget documents set the stage for political rather than fiscal battles.
Uncle Sam is losing billions each year in wrong Earned Income Tax Credit claims.
The earned income tax credit catches a lot of heat, but many military families depend on it and the refundable portion of the child tax credit.
Despite a law requiring accountability for money that federal agencies pay out, the IRS has issued as much as $13.6 billion in improperly claimed earned income tax credits.
A recent government investigation found that refundable tax credits cost the U.S. billions. But so do all the tax breaks you and I claim.