As some members of Congress continue to claim that tax hikes are needed to fund the federal government, we continue to learn of big, bold examples of wasted federal tax dollars — such as this, and then this. And don’t forget this debacle. The latest comes from a new Inspector General report.
The IRS estimates that at least 21 percent of its EITC payments in 2012 were faulty. That rate showed a decline compared to the previous nine years, but improper payments over the same period increased about 22 percent, rising to at least $11.6 billion, according to the inspector general’s report.
Overall, the agency “has made little improvement in reducing EITC improper payments,” the report said.
