IRS Processed Tax Returns on Time in 2013: TIGTA

Last updated on December 23, 2013

The TIGTA has reported that the IRS, in spite of the delay in the start of the tax season, processed tax returns and issued refunds on time. At the beginning of 2013, the IRS had to delay the tax filing season because of the enactment of the American Taxpayer Relief Act. This left the IRS less time to process tax returns and issue refunds.

The TIGTA made certain recommendations to the IRS to improve the identification of questionable claims for education credits and the Plug-In Electric Drive Motor Vehicle Credit. The TIGTA has also advised the IRS to “initiate programs to recover the erroneous and questionable credits TIGTA identified and to ensure that Earned Income Tax Credit due diligence penalties are accessed when appropriate.”

The TIGTA discovered that more than 120,000 taxpayers had not properly applied for the Earned Income Tax Credit (EITC). This year, taxpayers must ensure that they attach the checklist with their tax returns when filing for EITC to avoid IRS penalties for erroneous filing of returns.

The IRS had been complaining about the lack of staff, but even after the delay in the tax filing season, the agency was able to fulfill its obligations. The 2014 tax filing season is just around the corner. It is best to prepare for taxes well before the April due date to avoid the last minute rush. Erroneously filed tax returns lead to penalties and tax complications. Therefore, when preparing tax returns, check the information on the return before filing.