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<classification authority="sudocs">GA 1.13:T-GGD-95-136</classification>
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 <accessId>GAOREPORTS-T-GGD-95-136</accessId>
 <reportNumber>T-GGD-95-136</reportNumber>
 <subject>Tax credit</subject>
 <subject>Illegal aliens</subject>
 <subject>Eligibility criteria</subject>
 <subject>Disadvantaged persons</subject>
 <subject>Income maintenance programs</subject>
 <subject>Fraud</subject>
 <subject>Noncompliance</subject>
 <subject>Tax administration</subject>
 <subject>Income taxes</subject>
 <subject>Erroneous payments</subject>
 <identifier>Earned Income Tax Credit</identifier>
 <identifier>Tax Compliance Act of 1995</identifier>
 <type>Testimony</type>
 <seriesAbbrev>GGD</seriesAbbrev>
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<titleInfo>
 <title>Earned Income Credit: Targeting to the Working Poor</title>
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<abstract>The earned income credit, which is expected to provide about $22 billion
in tax credits in 1995, is a major federal effort to assist the working
poor.  The credit is intended to offset the impact of Social Security
taxes on low-income workers and to encourage the poor to seek employment
rather than welfare.  GAO testified that a reliable overall measurement
of noncompliance with the earned income credit provisions has not been
made since 1988, but noncompliance appears to be a problem.   The
Internal Revenue Service estimates that 29 percent of the returns that
it examined in January 1994 claimed too much earned income credit and
that about 13 percent of them may have done so intentionally. Although
the credit is intended to help the working poor, the credit&apos;s
eligibility criteria do not consider all of the resources that
recipients may have to support themselves and their families.  No one
knows how many illegal aliens receive the earned income credit.  If the
all credit recipients needed valid Social Security numbers for work
purposes, illegal aliens would no longer qualify.</abstract>
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<identifier type="preferred citation">GAO/T-GGD-95-136</identifier>
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<note>Testimony</note>
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 <searchTitle>GAO/T-GGD-95-136; Earned Income Credit: Targeting to the Working Poor;
            </searchTitle>
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<subject>
 <topic>Tax credit</topic>
 <topic>Illegal aliens</topic>
 <topic>Eligibility criteria</topic>
 <topic>Disadvantaged persons</topic>
 <topic>Income maintenance programs</topic>
 <topic>Fraud</topic>
 <topic>Noncompliance</topic>
 <topic>Tax administration</topic>
 <topic>Income taxes</topic>
 <topic>Erroneous payments</topic>
 <topic>Earned Income Tax Credit</topic>
 <topic>Tax Compliance Act of 1995</topic>
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