, a tax break claimed by low- to moderate-income filers, which has been prone to mistakes due to complex eligibility requirements.
"It's long been recognized that correspondence audits have a lot of problems," said Chuck Marr, vice president for federal tax policy at the Center on Budget and Policy Priorities, noting that many filers don't receive or understand the notices. During fiscal year 2020, more than $16 billion of the credit was claimed improperly — over one-quarter of the total paid — according to the National Taxpayer Advocate'sWhile IRS audit rates have dropped overall, the rates have declined more slowly for filers claiming the earned income tax credit
."The IRS audits a higher percentage of taxpayers with the earned income tax credit than any other taxpayers, except those with at least $5 million of total positive income," National Taxpayer Advocate Erin Collins wrote in her 2022 report.The agency's research suggests"bad actors" may disproportionally file tax returns for"vulnerable filers," such as lower earners, filers of color or those with limited English proficiency, according to Werfel's letter.
Loans Loans Latest News, Loans Loans Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: chicagotribune - 🏆 8. / 91 Read more »