EARNED INCOME CREDIT: Opportunities To Make Recertification Program Less Confusing and More Consistent

Abstract

The earned income credit (EIC) is a refundable tax credit available to low-income, working taxpayers. From January through December 2001, according to IRS, about $31 billion was paid to about 19.0 million EIC claimants. While it is important to ensure that all persons eligible for the EIC receive it, equally important is the need to identify and deny erroneous claims, whether due to fraud, negligence, or confusion. Because of a concern about the extent of erroneous EIC claims, the Congress included provisions in the Taxpayer Relief Act of 1997 (TRA97)1 that led to the Internal Revenue Services (IRS) establishment of a compliance effort known as the EIC recertification program. Under the program, taxpayers who have been disallowed the EIC through an IRS audit are to substantiate their qualification for the EIC before IRS recertifies them to receive the credit again.

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Document Details

Document Type
Technical Report
Publication Date
Apr 01, 2002
Accession Number
ADA401900

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  • United States Government Accountability Office

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  • Government Contracting/Procurement.
  • Military Logistics and Supply Chain Management