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<classification authority="sudocs">GA 1.13:T-GGD-95-179</classification>
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 <reportNumber>T-GGD-95-179</reportNumber>
 <subject>Tax credit</subject>
 <subject>Eligibility criteria</subject>
 <subject>Disadvantaged persons</subject>
 <subject>Illegal aliens</subject>
 <subject>Noncompliance</subject>
 <subject>Income taxes</subject>
 <subject>Fraud</subject>
 <subject>Erroneous payments</subject>
 <subject>Tax administration</subject>
 <subject>Social security number</subject>
 <identifier>Tax Compliance Act of 1995</identifier>
 <identifier>Earned Income Tax Credit</identifier>
 <type>Testimony</type>
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<titleInfo>
 <title>Earned Income Credit: Noncompliance and Potential Eligibility Revisions</title>
</titleInfo>
<abstract>The earned income tax credit is a major federal effort to help the
working poor.  As of May 1995, 17.3 million returns claimed nearly $20
billion in earned income credit for tax year 1994. Over the years, the
credit has been extended to (1) offset the impact of social security
taxes on low-income workers and (2) encourage low-income persons to seek
employment rather than welfare.  Overall noncompliance with the credit&apos;s
provisions has not been measured since 1988.  Nonetheless, noncompliance
appears to be a problem. Further, although the credit is intended to
assist the working poor, eligibility criteria have not considered all
the resources recipients may be able to draw on to support themselves
and their families.  Finally, no one knows how many illegal aliens
receive the credit.</abstract>
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<note>Testimony</note>
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 <searchTitle>GAO/T-GGD-95-179; Earned Income Credit: Noncompliance and Potential Eligibility Revisions;
            </searchTitle>
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 <topic>Tax credit</topic>
 <topic>Eligibility criteria</topic>
 <topic>Disadvantaged persons</topic>
 <topic>Illegal aliens</topic>
 <topic>Noncompliance</topic>
 <topic>Income taxes</topic>
 <topic>Fraud</topic>
 <topic>Erroneous payments</topic>
 <topic>Tax administration</topic>
 <topic>Social security number</topic>
 <topic>Tax Compliance Act of 1995</topic>
 <topic>Earned Income Tax Credit</topic>
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