Overview
TIGTA Issues Two Audit Reports: Today, the Treasury Inspector General for Tax Administration (TIGTA) released two audit reports. The first, titled Results of the 2018 Filing Season, recommended that the IRS complete its review of accounts that did not receive the correct amount of the Earned Income Tax Credit. It also recommended that the IRS revise the processes for issuing an Identity Protection Personal Identification Number (IP PIN) so that an IP PIN is automatically issued to certain taxpayers who are confirmed victims of identity theft and who are not working under someone else’s Social Security Number.
The second report, titled Processes Are Needed to Identify Small Businesses Erroneously Claiming the Research Tax Credit Payroll Tax Offset, found that the IRS does not have processes to identify small businesses that do not meet the eligibility requirements and dollar limitations for claiming the research tax credit. It recommended Small Business/Self-Employed Division review the potentially erroneous credits claimed by businesses that did not meet eligibility requirements and implement post-processing initiatives.