Advance Earned Income Tax Credit: Low Use and Small Dollars Paid Impede IRS's Efforts to Reduce High Noncompliance

United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 2007-08-10 monographic deposited born digital 104 p. GA 1.13:GAO-07-1110 https://www.govinfo.gov/app/details/GAOREPORTS-GAO-07-1110 P0b002ee18039e910 f:d071110 DGPO 2010-08-12 2011-03-23 GAOREPORTS-GAO-07-1110 machine generated eng fdlp REPORT GAOREPORTS-GAO-07-1110 GAO-07-1110 Advance payments Cost effectiveness analysis Data integrity Eligibility determinations Income taxes Noncompliance Program evaluation Reporting requirements Social security number Tax administration Tax credit Tax law Tax return audits Tax returns Program goals or objectives Earned Income Tax Credit Other Written Product A74228

Advance Earned Income Tax Credit: Low Use and Small Dollars Paid Impede IRS's Efforts to Reduce High Noncompliance The Advance Earned Income Tax Credit (AEITC) allows individuals to receive a portion of the Earned Income Tax Credit (EITC) in their paychecks, instead of receiving all of it when filing their year-end tax return. Limited research has been conducted on the AEITC since GAO last examined it in the early 1990s. GAO was asked to determine (1) how many individuals received the AEITC compared with the EITC in tax years 2002 through 2004, what actions, if any, have been taken to increase use, and the potential for increases in use in the future; (2) the extent of noncompliance, if any, associated with the AEITC; and (3) how well the Internal Revenue Service's (IRS) procedures address the areas of noncompliance. To address these questions, GAO analyzed Forms W-2 and tax return data and interviewed IRS and Social Security Administration (SSA) officials. https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-07-1110/html/GAOREPORTS-GAO-07-1110.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-07-1110/pdf/GAOREPORTS-GAO-07-1110.pdf GAO-07-1110 https://www.govinfo.gov/app/details/GAOREPORTS-GAO-07-1110 Other Written Product GAO-07-1110; Advance Earned Income Tax Credit: Low Use and Small Dollars Paid Impede IRS's Efforts to Reduce High Noncompliance; Advance payments Cost effectiveness analysis Data integrity Eligibility determinations Income taxes Noncompliance Program evaluation Reporting requirements Social security number Tax administration Tax credit Tax law Tax return audits Tax returns Program goals or objectives Earned Income Tax Credit United States Code Title 26 Section 32 26 U.S.C. 32 United States Public Law 66 (103rd Congress) Public Law 103-66 United States Public Law 28 (110th Congress) Public Law 110-28