[The Other Harry]

Earned Icome Tax Credit

[LenS]

The EITC is probably the biggest source of fraud among taxpayers. Since EITC fraud is often a lot easier to prove than some of the more complex stuff, IRS enforcement dollars spent here can generate a correspondingly larger amount of dollars restored to the US treasury.

The problem with the EITC is that it's $2,000 to $3,000 payment is huge temptation even for people who make above $50,000. The key to the fraud is people either pretending to be not married or using two different addresses to split up family income (to meet the income limits) or ignoring the fact that when an unmarried couple lives together, the much higher income of the live-in boyfriend if he lives there for most of the year invalidates single mom's eligibility.

[VRWC_minion]

Most of the EIC so called audit is merely a letter asking for add'l documentation. However a corporate audit is a minimum three day site visit.