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American Rescue Plan Act: Assessment of Processes to Identify and Address Improper Child and Dependent Care Credit Claims

Audit · Treasury Inspector General for Tax Administration · 2022-03-14 · about Internal Revenue Service

Report

Title
American Rescue Plan Act: Assessment of Processes to Identify and Address Improper Child and Dependent Care Credit Claims
Submitting OIG
Treasury Inspector General for Tax Administration
Component agency
Internal Revenue Service
Type
Audit
Publication date
2022-03-14

Recommendations (9)

#StatusText
1ClosedThe Commissioner, Wage and Investment Division, should update processes to *****2***** from Form 2441 the care provider’s **2********************2*******************, and the amount paid to the care provider.
2ClosedThe Commissioner, Wage and Investment Division, should update paper verification processes to generate errors in the Error Resolution System when the ****************2****************, or amounts paid to the care provider are missing
3ClosedThe Commissioner, Wage and Investment Division, should revise Form 2441 to include checkboxes to note whether dependent care expenses are for a spouse or dependent who is physically or mentally incapable of caring for themselves or if special deemed…
4ClosedThe Commissioner, Wage and Investment Division, should develop a process to identify tax returns with adult **********2********** **************************2*****************************. These tax returns should be considered for selection for post-…
5ClosedThe Commissioner, Wage and Investment Division, should work with the Department of the Treasury, Office of Tax Policy, to obtain the legal authority to disallow the Child and Dependent Care Credit (CDCC) when the primary or secondary taxpayer is…
6ClosedThe Commissioner, Wage and Investment Division, should develop a process to identify tax returns with ***2*** Individual Taxpayer Identification Numbers (ITINs) used to identify the care provider. These tax returns should be considered for selection…
7ClosedThe Commissioner, Wage and Investment Division, should revise Form 2441 instructions and Publication 503, using examples, so taxpayers may better understand the requirements for qualifying care and expenses
8ClosedThe Commissioner, Wage and Investment Division, should develop a process to identify tax returns with care provider ****************************************************2******************************. These tax returns should be selected for post-…
9ClosedThe Commissioner, Wage and Investment Division, should coordinate with the Small Business/Self-Employed Division to develop a compliance plan for post-refund treatment of cases involving **********************2…

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