IRS Overpaid by $6 Billion in Child Tax Credits in 2013
Although no one will probably ever shed a tear to hear that the IRS paid taxpayers too much money, this latest report does nothing to breed confidence in how things are run in the nation’s tax collecting agency.
According to reports, the IRS paid about $6 billion in child tax credits last year to people who shouldn’t have received them. The payments were made to people from all kinds of circumstances, including those who accidently claimed the wrong amount, those who shouldn’t have claimed the credit at all, and to others who simply committed tax fraud. The numbers come from an audit performed by the Treasury Inspector General for Tax administration.
This credit has been a huge benefit to those families with children who do not make enough to pay federal income tax, as well as to other low-income families. The government has for years claimed that there is not a lot of risk involved with the child tax credit and improper payments. However, the results of this new audit would strongly suggest otherwise.
Even though the Inspector General made several suggestions, the IRS did not agree with many of them. However, in a statement, the nations’ federal tax agency did admit that new processes are needed in order to reduce the number of incorrect payments. A total of $57 billion in child tax credits were paid to more than 36 million families in 2013, with between $5.9 billion and $7.1 billion being improper payments.
Investing with Style
Investing with Style How do you define your approach to investing? There may be many answers to that question. One answer goes to the style of investing that you choose: value or growth. Are you looking for value? The goal of a value investor is to seek out “bargains,” finding those companies whose stock may…
Introducing the “Total Return” Trust
Introducing the “Total Return” Trust The fundamental purpose of most trusts is to create a plan of financial protection for more than one beneficiary, often beneficiaries in different generations. “All the trust income to my surviving spouse, with the balance to be divided among our children at her death” might be used in a marital…
Making Tax-wise Investments
Making Tax-wise Investments Tax considerations are not, and should never be, the be-all and end-all of investment decisions. The choice of assets in which to invest, and the way in which you apportion your portfolio among them, almost certainly will prove to be far more important to your ultimate results than the tax rate that…
Reducing Risk With a Diversified Portfolio
Reducing Risk With a Diversified Portfolio Have you been worried about the stock market’s recent volatility? You’re not alone. The stock market in March was a roller-coaster ride that served as a reminder to investors that the market’s ups and downs can be a little dizzying. But a volatile market should not leave you feeling…