The Tax Offset Program Continues to Allow Millions of Dollars to Be Erroneously Refunded to Taxpayers
But first, what is a tax offset?
It's the process of offsetting tax overpayments (that would otherwise result in a refund) to outstanding government debt.
Why did we do this audit?
To assess the IRS’s processes for identifying and applying overpayments to tax debts.
What did we find?
Between 2020 and 2022, $40.1 billion in overpayments were offset to pay outstanding tax debts. However, more than 4,500 taxpayers received more than $78 million in refunds or credits that should have been applied to outstanding tax debt.
Procedural and programming errors continue to prevent some overpayments from being applied to tax debts. Our recommendations to improve the program include better training, updated internal guidance, programming changes, and alerts to prevent erroneous refunds.
Administration of the Workers’ Compensation Program Claims Needs Improvement
Why did we do this audit?
Federal law provides benefits to federal employees who are injured on duty or develop work-related illnesses. We evaluated the IRS’s oversight of workers’ compensation claims, including initiation, return-to-work monitoring, and cost accuracy.
What did we find?
IRS managers generally processed claims timely, verified injuries, and referred fraudulent cases for review. They also monitored medical progress and duty status. Our recommendations included updating claim dispute procedures, standardizing certain reports, and resolving discrepancies with the Treasury.
Having trouble viewing this email? View it as a Web page.
|
