IRS overpaid on Earned Income Tax Credit program by ...

[Svnla]

between $11.6 to 13.6 Billion in 2012.

Work harder and pay more of your fair share, them folks need you, or rather your tax money.

On Tuesday, The Hill reported that the IRS overpaid the benefit for the Earned Income Tax Credit program by between 21 percent and 25 percent -- or $11.6 billion to $13.6 billion -- in 2012. Put in context, the FBI spent just over $8 billion on salaries that year. The Department of Education's budget for grants to primary and secondary education in 2013 is $14.5 billion.

On the bright side, the IRS estimates that 2012 overpayment was lower than in most years; then again, over the last decade, the IRS has overpaid by up to $132.6 billion.

http://www.dailyfinance.com/2013/04...=maing-grid7|main5|dl21|sec1_lnk3&pLid=302850

Wait for someone to come in and say how big corporations have all the tax breaks and spin...3..2..1..

This poster in the comment said it well:

bobcuz1959
I think the real moral wrong in what you describe is the Govt. taking the wages from anybody and redistributing them to anyone who is able to work. It enslaves the poor waitress by giving her money to support the her kids when she can't afford to be having more kids. I saw it growing up. The people who worked and did not accept the Govt. help taught their kids to be self reliant. The ones who took the tax money taught their kids how to work the system to get the money, and sell drugs to have extra cash. Our extra money went to help pay the costs of incarceration. Talk about paying twice.

 

[nehalem256]

Why is it called "overpaying" instead of defrauded?

But at least now we can put a dollar amount on how how much fraud goes on for one government welfare program.

 

[highland145]

NB4....If EITC is so great, trade with them.

 

[cubby1223]

One year I filled out my taxes then a month later the IRS sends me a letter in the mail basically saying "sign this letter and we will send you EIC money" so I did and I received another check! That one was somewhere around $200.

 

[EagleKeeper]

EIC is based on stated taxable income, # children and ages of children as reported on the tax return.

How difficult is that to be screwed up?
Children are already cross verified with the SS by number, name and age.

 

[Suspicious-Teach8788]

now think of all the resources we spend in taxes dealing with our complicated tax code. all that is a waste especially if the government is overpaying too.

 

[xBiffx]

:whiste: Flat tax, no deductions.....

 

[Incorruptible]

So are the moronic supporters of big government going to defend the IRS?

We need serious changes to the tax system replace the income tax with either a national sales tax or flat tax

 

[HomerJS]

So are the moronic supporters of big government going to defend the IRS?

We need serious changes to the tax system replace the income tax with either a national sales tax or flat tax

And who are the first ones to bitch when this is proposed, the church!

I like the idea of a national sales tax as long as unprepaired food, necessary medical, clothing (w/cap) and housing (w/cap) are exempt.

 

[dainthomas]

Why is it called "overpaying" instead of defrauded?

But at least now we can put a dollar amount on how how much fraud goes on for one government welfare program.

How many billions in cash was lost in Iraq? They just wheeled bags of money out the door and have no idea where it went.

Not saying this is great, but at least this went back into our economy.

 

[AustinInDallas]

And who are the first ones to bitch when this is proposed, the church!

I like the idea of a national sales tax as long as unprepaired food, necessary medical, clothing (w/cap) and housing (w/cap) are exempt.

9-9-9!

 

[highland145]

And who are the first ones to bitch when this is proposed, the church!

I like the idea of a national sales tax as long as unprepaired food, necessary medical, clothing (w/cap) and housing (w/cap) are exempt.

I think the church would still get theirs. It's the food kitchens/orphanages/shelters/education facilities that would take the hit.

The average annual household contribution is $2,213 while the mean is $870.

Not really deductible unless there are others...mortgage/health.

Excluding the things you mentioned, I thought the national sales tax wouldn't bring in enough revenue for current spending without still harming the poor.

 

[highland145]

Not saying this is great, but at least this went back into our economy.

Probably South America in fraudulent dollars. Most definitely, China for goods.

 

[Genx87]

EIC is based on stated taxable income, # children and ages of children as reported on the tax return.

How difficult is that to be screwed up?
Children are already cross verified with the SS by number, name and age.

My guess? Lots of split families claiming the same child. And there is little to no cross referencing by the IRS.

 

[highland145]

My guess? Lots of split families claiming the same child. And there is little to no cross referencing by the IRS.

And the "need for speed"...get that $$ back to the people. We'll check it next week....

 

[Incorruptible]

And who are the first ones to bitch when this is proposed, the church!

I like the idea of a national sales tax as long as unprepaired food, necessary medical, clothing (w/cap) and housing (w/cap) are exempt.

Who cares if the Church has a problem with it. I am alright with either the national sales tax or a flat tax.

 

[nehalem256]

:whiste: Flat tax, no deductions.....

There is really no reason for a flat tax beyond conservative stupidity.

A tax code with graduated progressive brackets, and no deductions, is no more complicated while being imminently more practical.

 

[xBiffx]

There is really no reason for a flat tax beyond conservative stupidity.

A tax code with graduated progressive brackets, and no deductions, is no more complicated while being imminently more practical.

How is every single person paying the same taxes not less complicated again? If that's all you are going to base it on then one bracket is obviously less complicated than more than one or more.

 

[nehalem256]

How is every single person paying the same taxes not less complicated again?

Well for one you appear to be confusing a head tax with a flat income tax. Even under a flat income tax people would pay different amounts depending on their income.

If that's all you are going to base it on then one bracket is obviously less complicated than more than one or more.

If you want to claim that there is so very minimal complexity added by having multiple brackets... well fine I see no reason to argue that.

But if you want to argue the reason for the complexity of the tax codes is because of having multiple tax brackets... uh no, just no.

The problem is the 1000s of credits and deductions.

With either progressive or flat income tax brackets paying you taxes would be nothing more than looking up the tax for your income.

 

[jayzds]

My guess? Lots of split families claiming the same child. And there is little to no cross referencing by the IRS.

It's fairly hard to claim a child multiple times although I could see some slipping through the cracks of our disorganized government system.

I have seen IRS letters removing or rejecting a child because of this issue. But, at the same time I am sure some get through on paper filed returns but, they would not on an e-filed return if the child was already claimed.

 

[EagleKeeper]

Above

I have seen this happen on my grandchildren during the first year of a divorce.

Letter arrives two years later asking for clarification.
Nothing ever followed up.

Did other side back down; IRS dropped the ball, ???

 

[Poot1976]

Hi Guys,

I want to find out more about the EITC like why is it a refundable tax credit, why is it a dual purpose tax credit, what are the factors that the level of credit received depends on?
I would appreciate any info and detailed explanation.

Thanks!

Best,
Jeffrey

 

[Poot1976]

Hi again,

I found a short description on how the EITC works at http://eitc.info/ but i want to know from experienced users how accurate this information is.

I would be truly grateful for some insights.

Thanks,
Jeffrey

 

[Lithium381]

No thanks jeff

 

[Jhhnn]

Might want to post a link to the original article-

http://thehill.com/blogs/regwatch/a...o-136b-in-low-income-tax-credits-report-finds

And Joe Valenti, the director of asset building at the left-leaning Center for American Progress, called the program "universally supported."

"I think it's always going to be a challenge to make sure that the payments are correct," he added, noting that many overpayments are often attributed to tax preparers. "One of the issues are that it's a fairly complicated credit to calculate, but when you are looking at a credit that has lifted millions of families above the poverty line, there's always going to be some error involved."

Tax preparers... who woulda thunk it?

Perspective? Try this-

By the end of 2008, the U.S. had spent approximately $900 billion in direct costs on the wars in Iraq and Afghanistan. The government also incurred indirect costs, which include interests on additional debt and incremental costs, financed by the Veterans Administration, of caring for more than 33,000 wounded. Some experts estimate the indirect costs will eventually exceed the direct costs.[7] As of June 2011, the total cost of the wars was approximately $3.7 trillion.[8]

http://en.wikipedia.org/wiki/Military_budget_of_the_United_States

Military spending, unlike helping poor people, is fiscal comfort food for the fringewhacks. Killing brown people on the other side of the planet is just icing on the cake. Whatever the problem, spending more on the military will make it feel better.