Reports

Department of the Treasury OIG

Desk Review of The Cherokee Nation, Oklahoma’s Use of Coronavirus Relief Fund Proceeds

Small Business Administration OIG

COVID-19 Pandemic EIDL and PPP Loan Fraud Landscape

The U.S. Small Business Administration (SBA) Office of Inspector General (OIG) conducted this review to provide a comprehensive estimate of the potential fraud in the U.S. Small Business Administration’s (SBA) pandemic assistance loan programs. Over the course of the Coronavirus Disease 2019 (COVID-19) pandemic, SBA disbursed approximately $1.2 trillion of COVID-19 Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) funds. In the rush to swiftly disburse COVID-19 EIDL and PPP funds, SBA calibrated its internal controls. The agency weakened or removed the controls...

Full Details: Oversight.gov Report Page

Department of the Treasury OIG

Desk Review of State of Illinois’ Use of Coronavirus Relief Fund Proceeds

Full Details: Oversight.gov Report Page

Department of the Treasury OIG

Desk Review of Chippewa Cree Tribe’s Use of Coronavirus Relief Fund Proceeds

Full Details: Oversight.gov Report Page

Other | 6/26/2023

Social Security Administration OIG

The COVID-19 Pandemic’s Effect on Disability Determination Services’ Processing of Disability Claims

Objective: To determine how the COVID-19 pandemic affected the disability determination services’ (DDS) processing of disability claims.

Full Details: Oversight.gov Report Page

Tennessee Valley Authority OIG

Remote Application and Desktop Virtualization Client

The Office of the Inspector General audited the Tennessee Valley Authority’s (TVA) use of remote application and desktop virtualization client due to the risks of (1) potential system intrusion through misconfigurations and (2) continued elevated remote users during the COVID-19 pandemic. We found the configuration management control for TVA’s remote application desktop virtualization client was ineffective. However, we determined compensating access controls were in place to mitigate the risk to an overall acceptable level.

Full Details: Oversight.gov Report Page

Treasury Inspector General for Tax Administration

American Rescue Plan Act: Assessment of the Expanded Child and Dependent Care and Earned Income Tax Credits

Full Details: Oversight.gov Report Page

Audit | 6/15/2023

1 - Closed

On February 17, 2022, we notified the Director, Submission Processing, Wage and Investment Division, of our concern with three business rules and recommended that IRS management update the business rule programming to identify and evaluate returns for both refundable and nonrefundable CDCC claims.

2 - Open

Ensure that programming is updated for Processing Year 2023 to identify taxpayers who reported an obviously invalid care provider TIN on Form 2441.

3 - Closed

Develop a tool or programming for Error Resolution to ensure that tax returns claiming prior year expenses are systemically identified to determine if the maximum CDCC had been claimed in the prior year, before processing the return and potentially releasing erroneous refunds.

4 - Closed

Work with the Department of the Treasury, Office of Tax Policy, to advance legislation to treat a tax return as filed only when it is accepted. This would remove the legal risks associated with rejecting tax returns with conditions that indicate the taxpayer is ineligible for refundable credits claimed on the return.

5 - Closed

If legislation is enacted, develop programming to reject e-filed returns meeting certain conditions, such as those noted in this report.

6 - Closed

The Commissioner, Wage and Investment Division, should ensure that the compliance filter criteria for identifying individuals claiming self-only EITC who are not eligible for work is updated to include the *************************.

7 - Closed

The Commissioner, Wage and Investment Division, should establish processes to compare subsequent legislative changes with compliance filter
programming to identify and make necessary changes, as needed.

8 - Closed

The Commissioner, Wage and Investment Division, should review the 774,559 returns with self-only EITC from potentially ineligible ******** and take actions needed to recover credits that are determined to be erroneous.

9 - Open

The Commissioner, Wage and Investment Division, should complete examinations for all 61 tax returns we identified to ensure taxpayers receive the correct CDCC amounts.

Treasury Inspector General for Tax Administration

American Rescue Plan Act: Review of the Reconciliation of the Child Tax Credit

Full Details: Oversight.gov Report Page

Audit | 6/14/2023

1 - Open

Review all of the 6,833 taxpayers with excess Child Tax Credit identified during our review and take appropriate actions to ensure that the taxpayers receive the correct amount of the Child Tax Credit.

2 - Closed

Identify additional taxpayers after May 5, 2022, who received excess Child Tax Credit as a result of tax examiner error and take appropriate actions to ensure that these taxpayers receive the correct amount of the Child Tax Credit.

3 - Closed

Review the 105 taxpayers who potentially did not receive all of their eligible Child Tax Credit identified during our review and take appropriate actions to ensure that they receive the correct amount of the Child Tax Credit.

4 - Closed

Evaluate the priority of programming to ensure that processes and procedures are developed to identify and correct tax examiner entries input during the error correction process that exceed statutory limits, including a process to systemically reprocess corrected returns through Error Resolution programming before being released for processing.

5 - Closed

On February 17, 2022, we notified IRS management of our concerns with undeliverable payments that post after the processing of the tax return. In these instances, the IRS processed the tax return as if the payment was received by the taxpayer. As a result, the taxpayer would receive less Child Tax Credit than they are eligible to receive. We recommended that the IRS develop a process to identify undeliverable payments after
processing of the TY 2021 tax return.

6 - Closed

Identify taxpayers with advance payments who have yet to file a TY 2021 tax return and send a reminder notice, similar to the Department of the Treasury, using the advance payments as part of the criteria.

7 - Closed

Work with the Commissioner, Small Business/Self-Employed Division, to create a process to recover potentially erroneous advance payments from taxpayers who have not filed a TY 2021 tax return.

Treasury Inspector General for Tax Administration

American Rescue Plan Act: Continued Review of Premium Tax Credit Provisions

Full Details: Oversight.gov Report Page

Audit | 6/14/2023

1 - Open

The Commissioner, Wage and Investment Division, and the Commissioner, Small Business/Self-Employed Division, should consider expanding the use of soft notices to address potentially erroneous PTC claims. These notices should provide individuals with information specific to the eligibility or reporting requirements related to the potential error the IRS identified and suggest the filing of an amended return, if an error has
occurred.

2 - Closed

The Commissioner, Wage and Investment Division, should notify the 317,418 taxpayers we identified, who potentially received less PTC than they were entitled or repaid more APTC than required, that they may qualify for additional PTC or overpaid APTC and encourage them to file an amended Tax Year 2021 return, if applicable.

2 - Open

3 - Closed

The Commissioner, Wage and Investment Division, should develop processes, such as the use of courtesy letters to notify individuals of their potential eligibility, to proactively assist taxpayers who, based on available tax return and Exchange data, potentially claimed less PTC than entitled or paid more APTC than required.

3 - Open

4 - Closed

On October 26, 2022, we notified the Director, Submission Processing, of our concerns regarding taxpayers who are potentially eligible for additional PTC based on their unemployment status during Tax Year 2021. We recommended that the Director, Submission Processing, notify these taxpayers that they may qualify for additional PTC or be able to reduce the amount of excess APTC they must repay and encourage them to file an amended Tax Year 2021 return, if they qualify.

5 - Closed

On October 25, 2022, we notified the Director, Submission Processing, of our concerns with the draft Tax Year 2022 Form 8962 instructions. We
recommended that the IRS revise the instructions to inform taxpayers that they have an option to set a domestic violence indicator on their tax return.

Department of Housing and Urban Development OIG

Nationstar Generally Did Not Meet HUD Requirements When Providing Loss Mitigation to Borrowers of Delinquent FHA-Insured Loans

We audited Nationstar Mortgage, LLC’s (doing business as Mr. Cooper (Nationstar)) compliance with the Federal Housing Administration’s (FHA) requirements for providing loss mitigation assistance to borrowers after their COVID-19 forbearance ended. We concurrently conducted a nationwide audit of servicers’ compliance with the U.S. Department of Housing and Urban Development’s (HUD) COVID-19 loss mitigation requirements (HUD Office of Inspector General (OIG) Report 2023-KC-0005). This audit complements that audit by examining how a single provider, Nationstar, provided loss mitigation for...

Full Details: Oversight.gov Report Page

Date Range

Report Type

Report Category

Submitting Agency

State/Local Agency

State (State and Local Reports)

Fraud Type

Agency Reviewed

Related Organizations

Management Challenges

Any Recommendations

Any Open Recommendations

Reports

Desk Review of The Cherokee Nation, Oklahoma’s Use of Coronavirus Relief Fund Proceeds

COVID-19 Pandemic EIDL and PPP Loan Fraud Landscape

Desk Review of State of Illinois’ Use of Coronavirus Relief Fund Proceeds

Desk Review of Chippewa Cree Tribe’s Use of Coronavirus Relief Fund Proceeds

The COVID-19 Pandemic’s Effect on Disability Determination Services’ Processing of Disability Claims

Remote Application and Desktop Virtualization Client

American Rescue Plan Act: Assessment of the Expanded Child and Dependent Care and Earned Income Tax Credits

American Rescue Plan Act: Review of the Reconciliation of the Child Tax Credit

American Rescue Plan Act: Continued Review of Premium Tax Credit Provisions

Nationstar Generally Did Not Meet HUD Requirements When Providing Loss Mitigation to Borrowers of Delinquent FHA-Insured Loans

Glossary

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