Posted on 05/03/2017 1:20:41 PM PDT by Oldeconomybuyer
One-fourth of IRS payments for several major refundable tax credits are being improperly made, costing the government billions of dollars, the Treasury's inspector general for tax said.
In a report released Tuesday, the inspector general found that the rate of improper payments remains high, at nearly 25 percent, for the earned income tax credit, the refundable portion of the child tax credit, and the American Opportunity tax credit, a benefit for college students.
While the IRS has acknowledged that the earned income tax credit is a high risk, it "still does not provide a valid assessment" of the rate of improper payments for other refundable credits.
In fiscal 2016, 24 percent of earned income tax credit payments were made improperly, representing $16.8 billion, according to the report.
For the refundable part of the child tax credit, the error rate was 25.2 percent, accounting for $7.2 billion. Another $5.7 billion was paid out improperly through the American Opportunity tax credit, with an error rate of 24.2 percent.
(Excerpt) Read more at washingtonexaminer.com ...
Abolish the IRS. Replace it with a Fair Tax.
One of the largest “OOPS!” I’ve ever seen.
Gee.
Can we fire the IRS commissioner for this “mistake” in HIS INTERNAL PROCEDURES?
This is not an “error”. Most all of these bums know they are scamming the system. These “credits” need be abolished.
Cloward-Piven in progress. More payments to vote-buy the underclass, with the side benefit of collapsing the system, so they can bring in totalitarianism. Read the paper sometime. We are right on track with their plan.
Lower the cost and complexity of the tax regime, while lower the assessed tax rate for everyone, while eliminating all deductions, exemptions, exclusions and credits and providing for a universal flat tax regime, merely collected by the payer when paid.
No forms to fill out and nothing to figure out. Your payers during the year have already collected the flat tax.
You would then be neither advantaged nor disadvantaged in the tax code because of how you need or chose to spend your income.
Then do the same for corporate income taxes (a defacto national “sales” tax, which also as a universal flat tax would have no deductions, exemptions, exclusions or credits and because of that the rate would be much lower than at present. Only companies most adept right now at mining the tax code would likely pay more in actual taxes.
Then alter the U.S. breadth of taxation to economic activity in the U.S. economy only - territorial taxation, which is what nearly all our major economic competitors do. A Frechman earning income in the U.K. pays taxes in the U.K. and tacks the rest home to France, with no taxes in France on it. Americans are taxed by the IRS on what they earn abroad. The same distinction is true for American companies. Their foreign competitors have the financial advantage of NOT being taxed in their home country on income earned outside their home country.
Why is it done differently in the U.S.? Because corporate taxes are all about ATTACKING corporate income.
Exactly. A good portion of those credits, especially the child tax credit, goes to illegals that file multiple claims from one residence, and claim multiple children, many that live in Mexico. There was a news video interviewing the criminals and the IRS that came out years ago.
Notice how they think it is THEIR money. I hate these MF'ers. Send them all to hell I say.
We really lose the language war when we accept terminology like”refundable” tax credit for money that was never paid into the system in the first place.
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