Every April 15th small businesses and corporations go through minor spasms as everyone in the organization attempts to straighten out and file their taxes. Well, apparently businesses aren’t the only ones who don’t fully understand the tax code–the IRS is a bit fuzzy too.
New laws, including the American Recovery and Reinvestment Act of 2009 and the Worker, Homeownership and Business Assistance Act of 2009, have “caused confusion, resulting in taxpayers making errors in claiming Recovery Act credits on their tax returns; delays in processing tax returns; and erroneous payments by the IRS,” said a report from the Treasury Inspector General for Tax Administration.
The IRS paid “some $24.2 million in erroneous Making Work Pay and Government Retiree credits and improperly awarded some $4.7 million in erroneous Plug-in Vehicle credits” through the first week of March, the TIGTA report said.
Those are some pretty egregious errors! Perhaps we should penalize them for filling out tax forms wrong, eh? Happy Tax season.
