TIGTA: Make EITC form simpler

Posted 4/6/2018

A new report from TIGTA has urged the IRS to modify Form 1040, to make it easier for more people to claim the Earned Income Tax Credit (EITC). An estimated 5m potentially eligible taxpayers are not claiming the EITC each year, amounting to $7.3bn in unclaimed benefits, on an annual basis. The Inspector General says that making changes to Form 1040 - such as eliminating Schedule EIC, "Earned Income Credit," and adding sections for necessary eligibility information, such as the ages of children and the duration of residency - could increase EITC participation. TIGTA also recommended establishing a specific objective for increasing EITC participation rates for eligible taxpayers, along with related performance measures to determine whether the established objectives have been achieved.

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