Practical and Practice issues for Professionals who practice in the area of taxation. Moral, social and economic issues relating to taxes, including international issues, the U.S. Internal Revenue Code, state tax issues, etc. Not for "tax protestor" issues, which should be posted in the "tax protestor" forum above. The advice or opinion given herein should not be relied on for any purpose whatsoever. Also examines cookie-cutter deals that have no economic substance but exist only to generate losses, as marketed by everybody from solo practitioner tax lawyers to the major accounting firms.
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Treasury Inspector General for Tax Administration Report Number: 2011-41-083 to the Internal Revenue Service Commissioner for the Wage and Investment Division.
From http://www.treasury.gov/tigta/auditrepo ... ights.html
WHAT TIGTA FOUND
As of May 28, 2010, TIGTA identified 2.1 million taxpayers receiving $3.2 billion in education credits that appear to be erroneous, and at least 1.1 million (52 percent) had tax returns prepared by a paid tax return preparer. Specifically:
· 1.7 million taxpayers received $2.6 billion in education credits that appear to be erroneous based on IRS records.
· 370,924 individuals were claimed as students but were not eligible for education credits because they did not attend the required amount of time and/or were postgraduate students. This resulted in an estimated $550 million in erroneous education credits.
· 63,713 taxpayers erroneously received $88.4 million in education credits for students claimed as a dependent or spouse on another taxpayer’s tax return.
· 250 prisoners erroneously received $255,879 in education credits.
In addition, TIGTA identified that a valid Social Security Number is required for Federal student aid but not for education credits. Our review identified 84,754 students who did not have a valid Social Security Number but were claimed by taxpayers who received $103 million in education credits.
Full report at http://www.treasury.gov/tigta/auditrepo ... 1083fr.pdf
“Where there is an income tax, the just man will pay more and the unjust less on the same amount of income.” — Plato
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I'm shocked, I tell ya, shocked that a tax code provision that doesn't require independent verification means that we are going to discover erroneous returns.
"I could be dead wrong on this" - Irwin Schiff
"Do you realize I may even be delusional with respect to my income tax beliefs? " - Irwin Schiff
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