The IRS has issued more than 1.2 million financial payments to potentially ineligible taxpayers, totaling 9 billion. According to a study from the Treasury Auditor General for Tax System (TIGTA), the IRS handled 99.48 percent of the 175 million advanced Recovery Rebate Credit (RRC) stimulus reimbursements sent to 167.4 million people appropriately as of September 16, 2021.
TIGTA’s Discovery
Additionally, the investigation indicated that close to 644,705 persons who were eligible for stimulus payments did not get them, resulting in a $1.6 billion loss. TIGTA discovered 1.2 million potentially improper RRC payments.
People who were identified as dependent on others’ tax records received $544,323 in payouts totaling $856 million.
Non-residents and persons living in US territory received 342,173 payments totaling $579 million.
In response to fluctuations in provisions dealing or their partner, 191,768 people received multiple payouts totaling 1 million.
Programming problems resulted in the issuance of 60,824 payments totaling $109 million.
There were 26,468 payments paid to people who were no longer alive.
RRC Payments And Audits
Economic Security (CARES) Act, The Coronavirus Relief, The Coronavirus Aid, which was enacted into law in March of 2020, includes the Recovery Rebate Credit. For the 2021 tax year, the American Rescue Plan Act, which was put into effect on March 11, 2021, provided a third RRC of equivalent to $1,400 per qualifying person, reports Go Banking Rates.
On the day of enactment, the IRS started issuing advanced RRC payments. As of Sept. 16, 2021, the Internal revenue service had approved over 175 million advances RRC payouts bringing the total $408 billion – to 167.4 million people, with much more than 10 million plus-up payouts bringing the total billion (plus-up payouts are expenses to people who received an upfront fee for a 2019 return but then filed a 2020 return).
The IRS already has agreed to TIGTA’s suggestions as part of this RRC audit and has begun correcting payment requirements to ensure that those who are entitled to payments get them, or who may be able to claim the RRC on the 2021 tax return.
