IRS handed out $132 billion in wrongful payments under low-income tax credit program

By SUSAN FERRECHIO | OCTOBER 22

The Internal Revenue Service has made "no significant improvements" toward ending massive improper payments under the Earned Income Tax Credit program, according to an audit released Tuesday, which shows the agency issued more than $132 billion in wrongful tax credits over the past decade.

It's also "unlikely that the IRS will significantly reduce those improper payments in the future, in part because it does not want to discourage low-income earners who qualify from applying for the credit, according to the audit by the office of the Treasury Inspector General for Tax Administration.

The IRS failed to implement required safeguards against improper tax credits and, as of 2012, was annually handing out at least $11 billion to those who did not qualify for the benefit, the audit showed….To ReadMore….