The IRS paid as much as $13.6 billion in bogus claims for the Earned Income Tax Credit last year, according to a report the agency’s internal auditor released Tuesday morning.
The Treasury Inspector General for Tax Administration said it warned the IRS in 2011 that it was making the erroneous payments, but two years later the agency hasn’t fixed the problem.
Over the last decade, the IRS could have paid out as much as $132.6 billion in improper payments.
“The IRS has made little improvement in reducing improper EITC payments as a whole since it has been required to report estimates of these payments to Congress,” the inspector general said. “The IRS acknowledges that further reductions in the EITC improper payment rate will be difficult to achieve.”
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