IRS Overpaid by $6 Billion in Child Tax Credits in 2013

Mini,House,And,Heart,,Family,Members,,Us,Money,Bags,On

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.

Posted in ,
Top Tips to Do Your Taxes Like the Wealthy

Top Tips to Do Your Taxes Like the Wealthy

Top Tips to Do Your Taxes Like the Wealthy Everyone would like to be wealthy. But unfortunately, not everyone is. But that doesn’t mean you can’t do certain things like the wealthy, like protect your money from taxes. In other words, you don’t have to own several mansions and luxury cars, or dine in the…

Smart Tax Tips for Small Business Owners

Smart Tax Tips for Small Business Owners

Smart Tax Tips for Small Business Owners Do you own a small business? If you do then you know what’s like to be busy. Small business owners have so many things to worry about and take care of. They have to wear a lot of hats and fulfill several roles. It’s all part of owning…

Use the Power of Your Mind to Master Leadership

Use the Power of Your Mind to Master Leadership

Use the Power of Your Mind to Master Leadership People in positions of leadership seem to enjoy several benefits that some other employees might not. On the surface, it can appear as though life is easy when you’re in a position of leadership. However, leadership can be very taxing. In most cases, leaders face a…

Travel for Business? These Are the New Per-diem Rates

Travel for Business? These Are the New Per-diem Rates

Travel for Business? These Are the New Per-diem Rates If you travel a lot for business, listen up. The IRS has announced the new per-diem rates, which became effective on October 1. These numbers apply to any employee for all travel away from home that takes place on, or after that date. There are several…