During the COVID-19 pandemic, the Internal Revenue Service (IRS) issued over $1.1 billion in child tax credit payments to the wrong recipients, according to an audit released on Tuesday by the Inspector General (IG) for Tax Administration at the Dept. of the Treasury.
According to the audit, the IRS distributed the payouts to 1.5 million recipients between July and November of 2021 while the pandemic was occurring. The IG also reported that $3.7 billion in payments that should have been given to 4.1 million taxpayers were withheld.
The payments were made in error to recipients whose dependent children who were eligible for the credit were either deceased, over the age of 18, or already claimed on another filer’s return. These made up a modest percentage of the $76.7 billion worth of the 178.9 million child tax credit payments during that time.
The report also mentioned that 6,829 reconciliation letters—a document needed to submit tax returns for the year 2021—that the IRS delivered to taxpayers who received the credit mistakenly. Some taxpayers never got the letter, while others got it but it had the wrong amounts on it.
The report also revealed that 1,610 taxpayers’ bank account information used to receive direct deposits of the credit had its information incorrectly updated by the IRS.
The funds were paid in accordance with the American Rescue Plan Act’s provisions, which served as President Joe Biden’s principal pandemic legislative response. The Act dramatically made the tax credit fully refundable and allowed to be received in advance by up to 50% while raising the annual total by $1,000 to $1,600 per kid.
Along with the Paycheck Protection Program for businesses and stimulus checks for people, Biden’s efforts to provide cash to taxpayers during a period when precautionary lockdowns were still in effect in several states included payments for child tax credits. Republicans heavily criticized these programs, arguing that they would raise inflation and the federal budget deficit, which prevented them from supporting the Act in the GOP House.
Republicans in Congress have criticized the Biden administration ever since the Act’s adoption by citing instances of wrong payments and money that was not spent.
Republican Rep. Jason Smith of Mo, the top member of the House Finance Committee, declared during a meeting in June, “We have cataloged several instances of absurd squandering of federal taxpayer funds from the American Rescue Package.”
They are not for America ..they are crook!…..!y!.
Like Ronald Reagan said , Government not the solution, Government is the problem.
Correct! We need to get people in there who know what the heck they are doing with our tax payer money. People need to be prosecuted! Also another Question ♀️ I have is WHY is the government locking and loading so many weapons and ammo??? Why ??? They afraid?? Or do they just want to take over complete power??
COMPLETE POWER!! EVERYONE CAN SEE THAT!!! THE NEW WORLD ORDERS ARE COMING INTO PLAY AS WE SPEAK!!
BUT!!! FOR ALL BELIEVERS IN THE LORD JESUS CHRIST AND ALL CHILDREN UNDER THE AGE OF ACCOUNTABILITY WILL ALSO BE RAPTURED OUT OF HERE FIRST!! DONT BE LEFT BEHIND!!!!!
AMEN!!
Exactly right
Giving away taxpayer money should be limited to approval of both house congress coupled with the approval of the president and taken away from any and all government agencies!
I want to hear more about this on all media platforms. I am tired of the left control of the media and this administration using it to destroy our country. We the people have to fight back now and save this great country. We are the last best hope on earth for humanity even with our faults. Let’s go America we got to stop this communist media now God bless the USA
Sad.
As a sea going deck officer during the 60’s, my superiors were seasoned WWII folks…………..
WISH THEIR LEVEL OF COMPETENCY WAS MORE VISIBLE TODAY
No one in the highest levels of this administration is competent.
I’m still waiting for my e file return done in March for 2021 taxes. Received a letter from the IRS that it is under review 30 day delay. Then in May second letter additional 60 days. When I called in mid September after a 5 hours to get to the right department I was told that the reason for the delay could not be answered. Mind you our income is social security, iRA distribution and sub teacher. The sub teacher income allowed for senior earned income credit. Their laws not mine. A broken system is why things get lost.
Veterans benefits due under the pac act are on hold until next year because of lack of funds, but they managed to spend millions in error to scammers.
We need to vote every crook out of Congress no matter which party. Then vote every small time crook in local elections. Your mayors, council members, school board members, state prosecutors, judges, etc. It’s time to take back control of your towns and cities.
Not the mafia! The mafia keeps better track of their accounts and they are not imbeciles.