Post by Peteetongman on Jun 10, 2013 14:55:25 GMT -5
(CNSNews.com) - Treasury Inspector General for Tax Administration, J. Russell George, told a House Appropriations subcommittee Monday that it was more expensive for the IRS to go after those who cheated the system by improperly claiming low-income tax credits that totaled $13.6 billion in 2012 – more than the agency’s entire budget – than to simply write it off.
Based on a cost-benefit analysis, “in many instances, it’s more expensive for them to go after those who gamed the system or cheated the system than to in effect write it off,” George told Rep. Harold Rogers (R-Ky.) when he asked what was being done to tackle the problem.
“Mr. George, it was your report that the IRS had overpaid low-income tax credits by up to $13.6 billion in one year – 2012. When Secretary [Jack] Lew was before this subcommittee in late April, I made clear to him in no uncertain terms that this was unacceptable. That sum was more than the entire budget of the IRS. What steps are being taken, Mr. George, to tackle that problem?” Rogers asked.
George called it “one of the intractable problems confronting the Internal Revenue Service.”
“Refundable tax credits, which again are credits that can be paid to people who do not have tax obligations, once the money is out the door, it’s extremely difficult for the Internal Revenue Service to collect it,” he said.
cnsnews.com/news/article/treasury-ig-cheaper-write-136-billion-tax-credit-overpayment-s-more-irs-budget
Based on a cost-benefit analysis, “in many instances, it’s more expensive for them to go after those who gamed the system or cheated the system than to in effect write it off,” George told Rep. Harold Rogers (R-Ky.) when he asked what was being done to tackle the problem.
“Mr. George, it was your report that the IRS had overpaid low-income tax credits by up to $13.6 billion in one year – 2012. When Secretary [Jack] Lew was before this subcommittee in late April, I made clear to him in no uncertain terms that this was unacceptable. That sum was more than the entire budget of the IRS. What steps are being taken, Mr. George, to tackle that problem?” Rogers asked.
George called it “one of the intractable problems confronting the Internal Revenue Service.”
“Refundable tax credits, which again are credits that can be paid to people who do not have tax obligations, once the money is out the door, it’s extremely difficult for the Internal Revenue Service to collect it,” he said.
cnsnews.com/news/article/treasury-ig-cheaper-write-136-billion-tax-credit-overpayment-s-more-irs-budget
