Earned Income Credit: IRS' Tax Year 1994 Compliance Study and Recent Efforts to211 Reduce Noncompliance

摘要

In April 1997, the Internal Revenue Service (IRS) published the results of its211u001etax year 1994 Earned Income Credit (EIC) compliance study. The study showed that 211u001eof $17.2 billion in EIC claimed during the study period, taxpayers overclaimed 211u001eabout $4.4 billion, or about 26 percent. In response to your request, we (1) 211u001eevaluated IRS' study methodology to determine if the reported results were 211u001ereasonably accurate, (2) identified the primary sources of EIC noncompliance 211u001efound in the study, and (3) determined whether recent IRS compliance efforts are 211u001edesigned to address the primary sources of noncompliance.