REPORT: IRS has paid out $132 billion in bogus tax credits over last 10 years
Waco, Texas (KWKT) — According to The Washington Times, the IRS has paid out $132 billion in bogus tax credits over last decade.
In 2011, the Treasury Inspector General for Tax Administration claimed they had previously warned the IRS they were making false payments.
According to reports by investigators, IRS has and is continuing to violate an executive order signer by President Barack Obama demanding agencies find routs to reduce faulty payments.
The EITC (Earned Income Tax Credit) is a tax credit to help you keep more of what you earned. It is a refundable federal income tax credit for low to moderate income working individuals and families. Congress originally approved the tax credit legislation in 1975 in part to offset the burden of social security taxes and to provide an incentive to work. When EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit, according to the IRA website.
According to the report released by the IRS, up to 25 percent or $13.6 billion of all EITC claims in 2012 came from bogus payments and was incorrectly spent.