Reports

TIGTA is initiating a review to determine whether expedited hiring practices during the Coronavirus Disease 2019 (COVID-19) pandemic present potential security risks by assessing the effectiveness of fingerprinting and hiring activities, including inspection of employment eligibility documents.  It plans to identify newly established policies and guidance implemented to facilitate hiring during the pandemic, obtain extracts of new hires from 3/23/20 through 7/17/21 where either fingerprinting or Form I-9 physical inspection of identity documents was deferred, and determine whether hiring records comply with the requirements of the newly established policies and guidance implemented to facilitate hiring during the pandemic.
 

TIGTA is initiating a review of the IRS's oversight of the IRS's Information Technology organization's oversight of the American Rescue Plan Act of 2021 (ARPA) funding. ARPA is the latest in a series of coronavirus pandemic-related relief and economic stimulus legislation.  It includes approximately $1.9 trillion in economic relief and stimulus to address the continuing impact of the coronavirus pandemic on the economy, public health, state and local governments, individuals, and businesses.  ARPA provides the IRS with approximately $1.8 billion for the implementation of numerous tax-related provisions intended to provide relief to individuals and businesses and to modernize and secure its systems.  The IT organization was allocated approximately $1 billion of these funds for the systems work.

The overall objective of this review is  to continue to assess the IRS’s efforts to address backlogs of work in its various Submission Processing functions both carried over from the 2020 Filing Season and additional backlogs resulting from the IRS’s inability to timely process tax returns and other tax account work received during the 2021 Filing Season.  This review addresses the major management challenge of Responding to the COVID-19 Pandemic. 

The Treasury Inspector General for Tax Administration is initiating a review of the Internal Revenue Service’s customer service efforts to assist taxpayers in determining their eligibility and updating their personal information in order to qualify for advance payments of the Child Tax Credit.  The American Rescue Plan Act of 2021,  which became law on March 11, 2021, increases the amount of the Child Tax Credit from $2,000 to $3,000 per child under the age of 18 ($3,600 for children under 6). The American Rescue Plan Act also requires the IRS to develop an online portal, known as the Child Tax Credit Update Portal.  Taxpayers that do not have access to the Internet will be able to contact the IRS using a dedicated phone line or visit a Taxpayer Assistance Center to either opt-out or update their information.
 

Accounts Management is responsible for assisting taxpayers with questions about the tax laws, their tax account, the status of their refund and responses to many IRS notices.  Accounts Management’s ability to timely resolve taxpayer’s issues directly effects the customer service and experience provided to the taxpayer.  Accounts Management has consistently had a high percentage of overage inventory for many years.  The overage inventory has grown worse because of the IRS closures related to the Coronavirus Disease 2019 (COVID-19), which caused a backlog of mail at Tax Processing Centers and Campus Support sites.  Because most of Accounts Management inventory is initiated by the taxpayer, delays in getting through the backlog of mail causes inventory to be overage before it makes it to Accounts Management. 

The Treasury Inspector General for Tax Administration is initiating a review to evaluate the Internal Revenue Service’s efforts to implement the Premium Tax Credit tax law changes affected by the American Rescue Plan Act of 2021.  The American Rescue Plan Act of 2021, which became law on March 11, 2021, waives the repayment of any excess advanced Premium Tax Credit received by marketplace participants during Calendar Year 2020.  Additionally, the American Rescue Plan Act increases the Premium Tax Credits for all income brackets for coverage years beginning in 2021 and 2022.

The Treasury Inspector General for Tax Administration is initiating a review to evaluate the Internal Revenue Service’s actions to implement the legislative changes made by the American Rescue Plan Act (ARPA)  of 2021 to expand the Child Tax Credit and issue advanced periodic payments.  The ARPA, which became law on March 11, 2021, increases the amount of the Child Tax Credit from $2,000 to $3,000 per child under 18 years old ($3,600 for children less than 6 years old).  The credit is fully refundable and a portion of it can be paid in advance to taxpayers.  In addition, the Act requires the IRS to develop an online portal so that taxpayers can either un-enroll from receiving advanced periodic payments or update information such as marital status, number of qualifying children, etc. that would affect their eligibility for the Child Tax Credit and/or revise their advanced payment amounts.

The Treasury Inspector General for Tax Administration is initiating a review of the Internal Revenue Service’s development of the Child Tax Credit Update Portal (CTCUP) that was included as part of the American Rescue Plan Act of 2021.  The Act includes approximately $1.9 trillion in economic relief and stimulus to address the continuing impact of the coronavirus pandemic on the economy, public health, state and local governments, individuals, and businesses.  It also contains numerous tax-related provisions intended to provide relief to individuals and businesses.  These provisions will have a significant impact on IRS operations and Federal tax administration.

The Treasury Inspector General for Tax Administration is initiating a review to assess the IRS’s implementation of the expanded Child and Dependent Care Credit (CDCC) eligibility requirements.  The American Rescue Plan Act  temporarily expands the CDCC for taxpayers who work or are looking for work.  The CDCC will be fully refundable for Tax Year 2021.  The amount of the credit, rate used to determine the credit, and income phase-out limits increased significantly.  In addition, the amount of employer-provided dependent care benefits has more than doubled.  These changes make the CDCC the largest refundable credit.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act temporarily repealed certain restrictions imposed by the Tax Cut and Jobs Act of 2017 affecting net operating loss carrybacks (NOLs), and altered other NOL rules.  The objective of this review is to assess the Internal Revenue Service’s efforts to promote non-corporate business taxpayer compliance with Sections 2303 (relating to NOLs) and 2304 (relating to excess business losses) of the CARES Act.