Reports

Treasury Inspector General for Tax Administration

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

Audit | 6/14/2023

1 - Closed

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

Recurring Identification Is Needed to Ensure That Employers Full Pay the Deferred Social Security Tax

Full Details: Oversight.gov Report Page

Audit | 5/22/2023

Treasury Inspector General for Tax Administration

Additional Actions Are Needed to Reduce Accounts Management Function Inventories to Below Pre‑Pandemic Levels

Full Details: Oversight.gov Report Page

Audit | 5/10/2023

1 - Closed

Ensure that all sites understand and begin immediately stamping the ICT received date after correspondence screening is completed, and that individual and business documents are screened with equal importance.

10 - Open

Coordinate with the Information Technology organization to explore adding Taxpayer Relations inventories into the CII, so that all Accounts Management inventory is located in the same inventory management system.

11 - Closed

The Commissioner, Wage and Investment Division, should establish time frames for and a process to measure correspondence screening timeliness at each site.

12 - Closed

The Commissioner, Wage and Investment Division, should rescind the requirement that only the TEs and the CSRs perform correspondencescreening and encourage all sites to use mail clerks, after providing them with adequate training.

13 - Closed

The Commissioner, Wage and Investment Division, should ensure prompt completion of the ICT review to determine if additional scanners will be purchased.

2 - Closed

Discontinue correspondence screening via telework and ensure at all sites that screening must be conducted in the same IRS facility where documents are being scanned by the ICT.

3 - Closed

Identify and address the cause of Accounts Management function employees incorrectly routing cases to other IRS functions and work with other IRS functions to update their Internal Revenue Manuals to make it clear that incorrectly routed documents should be returned to the originating employee.

4 - Closed

We recommended that management take steps to hire as many mail clerks as possible.

5 - Closed

The Commissioner, Wage and Investment Division, should establish goals for each of the Accounts Management function’s inventory types and develop a plan for addressing those goals to ensure a timely return to pre-pandemic inventory levels.

6 - Open

The Commissioner, Wage and Investment, should prioritize funding and implementation of automated processing of Forms 1040-X to increase efficiencies and reduce taxpayer burden.

7 - Closed

The Commissioner, Wage and Investment Division, should implement temporary solutions for the processing of Forms 1040-X to reduce the backlogs, reduce taxpayer burden, and save IRS resources until an automated solution is implemented.

8 - Open

Coordinate with the Information Technology organization to prevent generating transcripts for manual refunds less than $100 and adjust the frequency that some transcripts are generated to help management get through the inventory more efficiently.

9 - Closed

Temporarily relieve employees in the Accounts Management function from having to complete paperwork for barred statutes, so they can focus on eliminating the backlogged inventory and prevent future barred statutes.

Election Assistance Commission OIG

Audit of the Help America Vote Act Grants Awarded to the Commonwealth of the Northern Mariana Islands

EAC OIG audited funds received by the Commonwealth of the Northern Mariana Islands under the Help America Vote Act, totaling $1.2 million. This included Election Security and Coronavirus Aid, Relief, and Economic Security Act grants.

Full Details: Oversight.gov Report Page

Audit | 2/24/2023

Treasury Inspector General for Tax Administration

Backlogs of Tax Returns and Other Account Work Will Continue Into the 2023 Filing Season

Full Details: Oversight.gov Report Page

Election Assistance Commission OIG

Audit of the Help America Vote Act Grants Awarded to the State of California

EAC OIG, through the independent public accounting firm of McBride, Lock & Associates, LLC, audited funds received by the State of California under the Help America Vote Act, including state matching funds and interest earned, totaling $216.3 million. This included Election Security, reissued Section 101, reissued Section 251, and Coronavirus Aid, Relief, and Economic Security Act grants.

Full Details: Oversight.gov Report Page

Audit | 10/04/2022

1 - Closed

We recommend that the EAC require the Office perform a reconciliation of the grant activity for the Election Security, Section 251 reissued, Section 101 reissued, and CARES Act funds and ensure that all expenditures are fully disclosed, and file amended FFRs, as applicable. If the Office determines that it is unable to perform the reconciliation of the grant activity, obtain financial services to support the completion of the reconciliation.

2 - Closed

We recommend that the EAC require the Office implement procedures and training to properly fill out the required Federal Financial Reports, which reflect the uses of award funds and the interest and program income generated from those funds for all HAVA grants.

3 - Closed

We recommend that the EAC require the Office transfer into the election fund $51,012 and any related fringe benefits and indirect costs for the unsupported payroll costs cited above.

4 - Closed

We recommend that the EAC require the Office implement procedures or provide additional training to ensure that payroll costs are adequately supported with appropriate signature approvals, pay rates, and timesheets when being allocated to the HAVA grants.

5 - Closed

We recommend that the EAC require the Office perform detailed testing on the $180,350 of additional wages selected for substantive testing to determine what amount, if any, remains unsupported.

6 - Closed

We recommend that the EAC work with the Office to resolve the one remaining unsupported County reimbursement.

7 - Closed

We recommend that the EAC require the Office to transfer into the election fund any amount which remains unsupported.

8 - Closed

We recommend that the EAC require the Office to develop and implement policies and procedures and provide training to ensure adequate documentation is maintained to support the allowability of expenditures charged to the HAVA grant.

Treasury Inspector General for Tax Administration

Reporting on the Use of Coronavirus Response Funding Could Be Enhanced

Full Details: Oversight.gov Report Page

Election Assistance Commission OIG

Audit of the Help America Vote Act Grants Awarded to the Commonwealth of Pennsylvania

EAC OIG, through the independent public accounting firm of McBride, Lock & Associates, LLC, audited funds received by the Commonwealth of Pennsylvania under the Help America Vote Act, including state matching funds and interest earned, totaling $53.4 million. This included Election Security, reissued Section 251, and Coronavirus Aid, Relief, and Economic Security Act grants.

Full Details: Oversight.gov Report Page

Audit | 9/22/2022

Treasury Inspector General for Tax Administration

American Rescue Plan Act: Accuracy of Advance Child Tax Credit Periodic Payments

Full Details: Oversight.gov Report Page

Audit | 9/21/2022

1 - Closed

As detailed previously, we provided the Director, Return Integrity and Compliance Services, Wage and Investment Division, with notifications and files detailing erroneous payments we identified and recommended that the IRS evaluate the discrepancies to identify why the payments were made to prevent additional periodic payments to ineligible taxpayers. In addition, we recommended that the IRS add a stop payment transaction code to taxpayer accounts to prevent them from receiving additional improper advance Child Tax Credit payments.

2 - Closed

On August 9, 2021, we notified the Director, Return Integrity and Compliance Services, Wage and Investment Division, of our concerns related to eligible taxpayers who did not receive their advance Child Tax Credit payments. We recommended that the IRS evaluate the discrepancies to identify why periodic payments were not made to eligible taxpayers.

3 - Closed

On June 29, 2021, we notified the Director, Return Integrity and Compliance Services, Wage and Investment Division, that the messaging provided on the IRS’s eligibility assistant tool and the presentation of information related to the advance Child Tax Credit payments on IRS.gov may be confusing to taxpayers. For example, the link to “Get Answers on the Advance Child Tax Credit” that is located on the IRS.gov main page takes taxpayers to the Advance Child Tax Credit Payments in 2021 web page; however, the links to get the questions and answers is at the bottom of the screen. We recommended that the IRS consider revising the messaging and presentation of information on its platforms to make it clear for taxpayers.

4 - Closed

On January 28, 2022, we notified the Director, Return Integrity and Compliance Services, Wage and Investment Division, that we identified 2.2 million taxpayers who had their direct deposit information updated by the IRS between August 23 and October 5, 2021. We recommended that the IRS conduct an outreach effort to inform taxpayers of the possibility that their advance payments may have been sent to payroll allotment accounts. This outreach effort could include sending a separate letter to the impacted taxpayers.

5 - Closed

The Director, Return Integrity and Compliance Services, Wage and Investment Division, should develop and implement processes and procedures to include data validation on incoming files from third-party sources prior to their use.

Election Assistance Commission OIG

Audit of the Help America Vote Act Grants Awarded to the State of Delaware

EAC OIG, through the independent public accounting firm of McBride, Lock & Associates, LLC, audited funds received by the State of Delaware under the Help America Vote Act, including state matching funds and interest earned, totaling $20 million. This included Election Security and Coronavirus Aid, Relief, and Economic Security Act grants.

Full Details: Oversight.gov Report Page

Audit | 9/21/2022

1 - Closed

We recommend that the EAC require the Office to transfer to the election fund $629,248 for the unsupported costs cited above.

2 - Closed

We recommend that the EAC require the Office to implement policies and procedures or training to ensure adequate documentation is maintained to support the allowability of expenditures charged to the HAVA grant, including maintaining copies of invoices paid, contracts from which purchases were made and purchase orders for purchases exceeding $10,000.

3 - Closed

We recommend the EAC require the Office to provide the inventory listing maintained by the IT Department and each County.

4 - Closed

We recommend the EAC require the Office to implement policies and procedures or training to ensure that assets are managed in accordance Uniform Guidance and the State of Delaware’s policy.

5 - Closed

We recommend the EAC require the Office to ensure that documented policies and procedures related to internal controls and asset management are established and implemented in accordance with the State of Delaware’s policy. Implementation should include policies to review and update the procedures on a regular basis.

6 - Closed

We recommend that the EAC require the Office to provide transaction detail of interest income earned for the Election Security and CARES Act grants.

7 - Closed

We recommend that the EAC require the Office to complete and file FFRs for the Section 251 funds or if the Office is unable to complete the Section 251 FFR, obtain financial services to support the completion of the filings.

8 - Closed

We recommend that the EAC require the Office to implement procedures and training to properly fill out the required FFRs, which reflect the uses of award funds and the interest income generated from those funds for all HAVA grants.

Date Range

Report Type

Report Category

Submitting Agency

Agency Reviewed

Management Challenges

Any Recommendations

Any Open Recommendations

Reports

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

Recurring Identification Is Needed to Ensure That Employers Full Pay the Deferred Social Security Tax

Additional Actions Are Needed to Reduce Accounts Management Function Inventories to Below Pre‑Pandemic Levels

Audit of the Help America Vote Act Grants Awarded to the Commonwealth of the Northern Mariana Islands

Backlogs of Tax Returns and Other Account Work Will Continue Into the 2023 Filing Season

Audit of the Help America Vote Act Grants Awarded to the State of California

Reporting on the Use of Coronavirus Response Funding Could Be Enhanced

Audit of the Help America Vote Act Grants Awarded to the Commonwealth of Pennsylvania

American Rescue Plan Act: Accuracy of Advance Child Tax Credit Periodic Payments

Audit of the Help America Vote Act Grants Awarded to the State of Delaware

Glossary

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