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.
Try These Five Tips For Tax Savings in 2014
Everyone loves to save on their taxes, especially since it seems like the government never runs out of ways to add to American’s tax bill. So let’s discuss some helpful tips to reduce your tax bill. Although it might be too late to implement these ideas for last year’s return – unless you file an…
As Property Values Soar In California, So Do the Tax Bills
As Property Values Soar In California, So Do the Tax Bills When it comes to taxes, sometimes it seems like if it’s not one thing, then it’s another. During the recession, when the housing market was taking a hit due to dropping property values, county tax assessors across the state actually dropped property tax bills…
Five Tax Items to Be Ready For This Year
Five Tax Items to Be Ready For This Year Although the most recent tax season is over one can never truly put his or her tax-planning hat completely away for the year. With tax laws and regulations always in flux, you have to make sure that you’re prepared for the upcoming tax season. It will…
Five Tips for Planning Your Taxes for Next year
Summer is almost here and that means people are getting ready to enjoy outdoor activities like BBQs & swimming and hiking & fishing. It’s also a great time to start thinking about your taxes for next year. What? It can’t really be time to do that, can it? Well, when it comes to tax planning,…